Hamburg-based secondary market research specialist yStats.com has released a new publication summarizing the latest trends in North American online and mobile payments. Among the findings of the report “North America Online Payment Methods 2019” is the fact that plastic continues to dominate the E-Commerce payment landscape in the U.S. and Canada.
North American Online Shoppers Choose to Pay by Card
Credit and debit cards were the leading payment methods in North American E-Commerce in 2018, according to surveys cited in the yStats.com report. In the U.S., more than one-half of all online purchases were paid using plastic, and in Canada, the majority of shoppers believed credit cards to be the safest payment means for E-Commerce. Furthermore, digital buyers in these countries value the comfort of making payments by card details saved with their favorite online merchants and prefer not to enter their payment details on unknown websites.
Mobile Payment Usage Rises, but Security Concerns Remain
The findings in the yStats.com report also point to growth expectation in mobile payments, both in-store and remotely. In the U.S., a double-digit share of consumers believed that mobile payments were faster and more efficient than other payment methods. On the other hand, the concern over the security of paying with a mobile device still prevails and is cited as the primary reason for not using mobile payment apps. Fear of fraud also hinders other innovative payment means from catching on. For example, in Canada, the share of respondents who would not use smart speakers for payment due to security concerns was nearly twice as high as those who find it easier to pay in another way.
Mobile Wallet Competition Intensifies
Nevertheless, the rates of mobile payment adoption are on the rise across North America and competition is heating up. PayPal and Apple Pay were the top providers used to make payments via mobile in a store, as of 2018. Starbucks made another strong case, leading among the payment apps used to pre-order coffee or food. According to one projection cited in the yStats.com report, Starbucks will have more users than Apple Pay by 2022.