sample report: asia-pacific alternative online payment methods: full year 2016

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GENERAL METHODOLOGY OF MARKET REPORTS

Secondary Market Research

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

Cross referencing of data is conducted in order to ensure validity and reliability.

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In

some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT

Report Coverage

This report covers the online payment market in Asia-Pacific. It takes into account a wide definition of online payment, including payment methods used in online

shopping and mobile payment, such as remote and proximity payments.

The major countries in the region are covered, while data availability varied across the markets.

The report includes data mostly published in 2016. The exact date of publication of the source is stated on each chart. The time period which the data refers to

differs by source.

Report Structure

The global chapter opens the report, featuring an overview of global online and mobile payment developments.

Next, the breakdown of online payment methods on the regional level is presented.

The rest of the report contains country-specific information. Countries are grouped by advanced and emerging B2C E-Commerce markets. Within each group,

the countries are presented in the descending order of B2C E-Commerce sales.

Depending on data availability, the following types of market information are included: payment methods most used by online shoppers, breakdown of E-

Commerce sales by payment methods, number of users and value of online/mobile payment transactions, rankings of payment providers, and information about

mobile payment usage. Not all the mentioned types of information are available for each of the covered countries. For the two leading countries in the region,

also online and mobile payment trends and news about major players are presented on text charts.

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DEFINITIONS

ONLINE PAYMENT Transfer of money made over the Internet following a consumer’s payment command, includes payments for product

and service purchased in (B2C) E-Commerce and M-Commerce.

MOBILE PAYMENT A wide definition of mobile payments includes remote payments made remotely in M-Commerce and proximity

payments made in-store, such as via QR code scanning and NFC technology.

MOBILE PROXIMITY PAYMENT A mobile payment where the merchant and the consumer are present in the same location and the interaction between

the consumer’s device (card, mobile device) and the POS is conducted using a proximity technology (e.g. NFC).

NFC Near Field Communication, a set of standards for smartphones and similar devices to create radio communication by

bringing them close together or having them touch each other. In that way, contactless data exchange and transactions

can take place.

ALTERNATIVE PAYMENTS

Generally refers to payment methods other than credit card or bank card payments. Widely defined, alternative online

payment methods include bank transfers and direct debit, digital wallets, pre-paid cards and private label cards, invoice,

and digital currency. May also include cash on delivery and card schemes by local companies other than global card

brands.

E-WALLET /

DIGITAL PAYMENT SYSTEM A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples of E-

Wallets or digital payment systems include Alipay and PayPal.

MOBILE WALLET

a software solution that enables consumers to store payment credentials, such as credit or debit card information, and

use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets are

installed on mobile devices which are used to complete payments. The examples of mobile wallets include Apple Pay,

Samsung Pay and Android Pay.

INSTANT PAYMENTS Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-immediate

interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the payer after

payment initiation.

B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via

mobile devices.

ONLINE SHOPPING Purchase of products or services by consumers via the Internet. Broadly defined, may include business to consumer

and consumer to consumer transactions.

The following expressions and definitions are used in this Online Payment market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 6)

1. Management Summary

2. Global Developments

• Online and Mobile Payment Trends, H2 2016

• Breakdown of E-Commerce Sales by Payment Methods, in %, 2015 & 2020f

• Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Payment Methods Used in Online Shopping, by Regions, in % of Online Shoppers, October 2015

• Top 3 Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August 2016

• Top 3 Considerations When Choosing a Payment Method in Cross-Border Online Shopping,

• in % of Cross-Border Online Shoppers, August 2016

• Reasons To Choose the Preferred Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016

• Value of Online Payment Fraud, in USD billion, 2015 & 2020f

• Breakdown of Online Payment Fraud by Segments, in % and in USD billion, 2020f

• Security Authentication Features That Online Shoppers in the USA and the UK Would Consider Setting Up for Online Purchases in the

Next 12 Months, in %, November 2016

• Breakdown of the Number of Online Payment Options Offered, in % of Online Merchants, January 2016

• Top 10 Merchant Acquirers, by Volume, in USD billion, 2015

• Mobile Payments Share of Total Consumer Card Payments, in %, 2016e & 2021f

• Breakdown of Mobile Payments by Usage Case, by Europe and North America, 2016e

• Mobile Proximity Payment Transaction Value, in USD billion, 2014 & 2019f

• Number of Proximity Mobile Payment Users, in millions, 2014 – 2019f

• Mobile P2P Money Transfer Transaction Value, in USD billion, 2014 & 2019f

• Number of Mobile P2P Money Transfer Users, in millions, 2014 – 2019f

• Mobile and Wearable Contactless Payments, in USD billion, 2015 & 2018f

• Mobile Payment Usage In-Store and Online, in % of Respondents, by Generation, 2015

• Perception of Security of Mobile Payments, in % of Respondents, by Generations, 2015

• Share of Internet Users Who Look Forward to Being Able to Pay for More Transactions from Mobile Device, in %, by Asia-Pacific,

Europe, Latin America, the USA, and Global Average, August 2016

• Contactless Payment User Penetration, in % of Banked Population, July 2016

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, by Selected Regions, August 2016

• Products and Services Paid for via Mobile Wallet, in % of Mobile Shoppers Who Paid with Mobile Wallet, August 2016

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2. Global Developments (Cont.)

• Share of Mobile Shoppers Paying with Mobile Wallets, by Selected Countries, in %, August 2016

• Probability of Using Mobile Wallets, in % of Smartphone Owners, by Selected Countries, July 2016

• Number of Mobile Money Accounts, by Registered and Active, by Selected Regions, in millions, December 2015

• Breakdown of Types of Payments Made with Mobile Money, by Number of Transactions and Value of Transactions, in %, December

2015

3. Asia-Pacific

3.1. Regional

• Breakdown of E-Commerce Sales by Payment Method, in %, 2015 & 2020f

• Share of Adults Using Digital Wallets, in %, by Selected Countries and Regional, 2013 - 2015

3.2. Advanced Markets

3.2.1. Japan

• Online and Mobile Payment Trends and News about Players, H1 2016


• Breakdown of Payment Methods Most Used in Online Shopping, in % of Online Shoppers, March 2016

• Payment Methods Used in Online Shopping, in % of Online Shoppers, March 2016

• Reasons for Choosing a Particular E-Commerce Website, incl. Payment-Related, in % of Online Shoppers, March 2016

• Breakdown of Experience with Cases Where Preferred Payment Method Was Not Offered, in % of Online Shoppers, March 2016

• Top Places to Use Credit Card, incl. “Online Shopping/Mail Order”, in % of Internet Users Who Used Credit Card in the Previous 6

Months, November 2016

• Top Purposes of Using a Credit Card, incl. “Online Shopping and Internet Services”, in % of Adults Who Would Like to Use Credit Cards,

July 2016

• Breakdown of Attitude to Being Asked to Enter a Password or Other Identification in Addition to Credit Card Number and Expiration Date

When Shopping Online, in % of Adults, July 2016

• Breakdown of Awareness of Virtual Currencies, in % of Internet Users, and Interest in Using Them, in % of Internet Users Who Know

Virtual Currencies, May 2016

• Locations for Current/Intended Use of Virtual Currencies, incl. “Online Shopping”, in % of Internet Users Who Are Aware of Virtual

Currencies and Are Interested in Using Them, May 2016

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3. Asia-Pacific (Cont.)

3.2. Advanced Markets (Cont.)

3.2.1. Japan (Cont.)

• Payment Methods Used in Physical Stores, incl. “E-Money”, in % of Internet Users, by Age Group, August 2016

• Number and Value of Electronic Money Transactions, in millions and in JPY billions, and in % Year-on-Year Change, 2010-2015

• Mobile Payments Solutions Used for Payment In-Store, in % of Internet Users, August 2016

3.2.2. South Korea


• Payment Methods Used in Online Shopping, in % of Online Shoppers, by PC and Mobile Shoppers, October 2015

• Reasons for Shopping Online, incl. Payment-Related, in % of Online Shoppers, by PC and Mobile Shoppers, October 2015

• Reasons for Using Mobile Payment Services, in % of Mobile Payment Users, May 2016

• Purposes of Using Mobile Payments, in % of Mobile Payment Users, September 2015

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, 2014 & 2015

• Overview of Four Selected Mobile Payment Services, incl. Provider, Launch Date and Number of Users, June 2016

• Daily Average Value of Mobile Card Payments, in KRW billion, 2014 & 2015

• Breakdown of Payment Instruments Used, by Transactions Number and Value, in %, incl. “Mobile Cards”, 2015

• Reasons for Not Using Mobile Financial Services, by Score, in %, 2015

3.2.3. Australia

• Share of Credit Cards in Number of Domestic B2C E-Commerce Payments, in %, FY 2010/11 and FY 2015/16

• Value of Card-Not-Present Fraud, in AUD million, and Share of Total Card Fraud, in %, 2010 - 2015

• Share of Online Shoppers Who Are More Inclined to Shop More Often from a Store Which Saves Their Payment Details for One-Click

Ordering, by Mobile Shoppers and Non-Mobile Shoppers, in %, April 2016

• Share of Internet Users Who Would Feel Confident that Their Money Is Secure If They Used Contactless Payments, April 2016

• Share of Banked Population Who Used Contactless Payments, by Contactless Card and Mobile Wallet, in %, 2015/2016

• Breakdown of Frequency of Using Contactless Payments In-Store, in % of Internet Users, 2015

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3.3. Emerging Markets

3.3.1. China




• E-Wallet’s Share of E-Commerce Sales, in %, 2015

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 2016

• Number of Online Payment Users, in millions, and Penetration, in % of Internet Users, 2012 – 2015 & June 2016

• Third-Party Online Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2015 – Q2 2016

• Third-Party Online Payment GMV, in CNY trillion, and in % Year-on-Year Change, 2012 - 2019f

• Breakdown of Third-Party Online Payment GMV, by Type, in %, Q2 2015 – Q2 2016

• Breakdown of Third-Party Online Payment GMV by Players, in %, by Two Comparative Estimates, Q1 2016

• Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014, 2015 & June 2016

• Third-Party Mobile Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2015 – Q2 2016

• Third-Party Mobile Payment GMV, in CNY trillion, and in % Year-on-Year Change, 2012 - 2019f

• Breakdown of Third-Party Mobile Payment, by Type, in %, Q2 2015 – Q2 2016

• Breakdown of Third-Party Mobile Payment GMV by Players, in %, by Two Comparative Estimates, Q1 2016

• Number of Active Users of Selected Mobile Payment Services, in millions, Q4 2015

• Breakdown of Payment Methods Used in Mobile Payment Accounts, in % Mobile Payment Users, 2015

• Mobile Payment Scenarios, in % of Mobile Payment Users, 2015

• Reasons for Using Mobile Payments, in % of Mobile Payment Users, July 2016

3.3.2. Taiwan

• Share of Smartphone Users Who Use Mobile Payment Services, in %, 2014 & 2015

• Top 5 Verification Methods Acceptable to Consumers in Mobile Payments, in % of Mobile Payment Users, 2015

3.3.3. India



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3.3. Emerging Markets (Cont.)

3.3.3. India (Cont.)

• Share of Returns in All Online Purchases and Cash on Delivery Purchases, 2015

• Share of Urban Online Shoppers Aged 31-54 Who Prefer Online Payment Methods, in %, 2015

• Breakdown of E-Commerce Payment Volume by Payment Methods, in %, 2015 & 2020f

• Value of Payment Transactions by Selected Non-Cash Payment Methods, in INR billion, Volume, in millions, and Change, in %, incl.

Mobile Wallets, FY 2014-2015 & FY 2015-2016

• Purposes of Using Mobile Wallets, in % of Mobile Wallet Users, April 2016

• Top 3 Mobile Wallet Apps, by Penetration, in % of Mobile Payment App Users, and Average Time Spent Per User Per Month, in minutes,

December 2015 & April 2016

• Breakdown of Reasons for Not Shopping Online, in % of Internet Users Who Do Not Shop Online, 2015

3.3.4. Indonesia

• Breakdown of E-Commerce Payments by Payment Method, by Approximate Share in %, 2015

• Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, December 2016

• Breakdown of Reasons to Choose Payment via ATM, in % of Online Shoppers Who Pay for Online Purchases via ATM, December 2016

• Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, August 2016

• Reasons to Choose an E-Commerce Website to Purchase From, incl. Payment-Related, in % of Online Shoppers, August 2016

• Number of E-Money Transactions, in millions, and Value, in IDR billion, 2010 – 2015

• Breakdown of Locations of Using Digital Wallets, in % of Internet Users Using Digital Wallets, by Gender, 2015

• Most Popular Non-Bank Fintech Services, in % of Non-Bank Fintech Service Users, November 2016

• Areas with Most Demand for Increased or Clearer Regulation According to Fintech Companies, in %, November 2016

3.3.5. Thailand

• Breakdown of E-Commerce Revenues of Retail and Wholesale Trade Companies by Payment Method, in %, 2015

• Payment Methods Used in Online Shopping, by Gender and Generation, May 2015

• Value Online Payment Transactions, in THB billion, and Number, in millions, by Bank, Non-Bank and Total, 2010 – 2015

• Value of Mobile Payment Transactions, in THB billion, and Volume, in millions, by Bank, Non-Bank and Total, 2010 – 2015

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3.3. Emerging Markets (Cont.)

3.3.6. Malaysia

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, June 2016

• Top 5 Reasons Preventing Consumers from Conducting Certain Banking Activities via Mobile, in % of Internet Users, March 2016

3.3.7. Vietnam

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 2014 & 2015

• Payment Methods Offered, in % of E-Commerce Companies, 2015

• Top 5 Online Payment Service Providers, in % of E-Commerce Companies Accepting Online Payment, 2015

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1. Management Summary 13 – 17

2. Global Developments 18 – 47

3.

3.1.

3.2.

3.2.1.

3.2.2.

3.2.3.

3.3.

3.3.1.

3.3.2.

3.3.3.

3.3.4.

3.3.5.

3.3.6.

3.3.7.

Asia-Pacific

Regional

Advanced Markets

Japan

South Korea

Australia

Emerging Markets

China

Taiwan

India

Indonesia

Thailand

Malaysia

Vietnam

48 – 130

49 – 50

51 – 81

52 – 65

66 – 75

76 – 81

82 – 130

83 – 101

102 – 103

104 – 112

113 – 121

122 – 125

126 – 127

128 – 130

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Credit Card 73.9%

Convenience Store Payment

5.3%

Prepaid Card (e.g. Amazon Gift Card)

5.1%

Cash on Delivery 4.0%

Debit Card 3.4%

Online Banking 2.8%

E-Money (Edy, Suica, Nanaco, Waon, QUIKPay)

2.2%

Transfer at a Financial Insitution

1.4% Others 1.9%

“Credit card” was the payment method most used by 73.9% of online

shoppers in Japan in March 2016. Japan: Breakdown of Payment Methods Most Used in Online Shopping, in % of Online Shoppers, March

2016

Survey: based on a survey of 760 Internet users, aged 20-59; the base of respondents for this question were 508 digital buyers

Source: JustSystems cited by Ekonomikata, May 2016

The number of mobile payment users in China grew from 217.4 million

in 2014 to 424.5 million in June 2016. China: Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014,

2015 & June 2016

217.4

357.7 424.5 39.0%

57.7%

64.7%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1000

2014 2015 June 2016

Number of Mobile Payment Users

Penetration in % of Mobile Internet Users

in m

illio

ns

in %

of M

obile

Inte

rnet U

sers

Definition: mobile Internet users are Internet users who have used mobile phones to access the Internet in the previous six months

Survey: based on an online survey conducted, ages 6+

Source: China Internet Network Information Center, January 2016, November 2016

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sample report: asia-pacific alternative online payment methods: full year 2016

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