Digital Payments Market to Leave Growing Pains Behind in 2016

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December 2, 2015
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Digital Payments Market to Leave Growing Pains Behind in 2016

LONDON, December 2, 2015 /PRNewswire/ --

         The "year of alternate payments" will see consumers dictating which payment

            technologies gain buy-in from merchants in an overcrowded market 

    Worldpay predicts that the digital payments market will leave its growing pains behind
in 2016. The payments leader says next year will herald "the third age of digital
payments" now that eWallets are growing in popularity, NFC offerings from technology
vendors like Apple, Samsung, and Google are fighting for mass appeal, and both banks and
brands are rolling out their own mobile payment apps to compete for consumer loyalty.

    2016 will also be a breakthrough year for Alternative Payment Methods (APMs), Worldpay
predicts. In its latest Global Payment Report, Worldpay found that APMs inched past card
payments for the first time ever with 51% of market share. Worldpay predicts this gap will
widen in 2016 and beyond as more consumers opt for the convenience of "e" payment options
over traditional plastic.

    The report also predicts that eWallets will overtake credit cards in the global
eCommerce market by 2019, accounting for 27% of global turnover compared with credit
cards' 24%. Additional APMs will account for a significant portion of the remaining market
alongside traditional debit card, bank transfer and cash payments.  

    Worldpay also expects eWallets to come of age over the next five years, and consumers
to play the largest role in dictating which payment technologies come out on top in an
increasingly crowded and confusing environment.

    Kevin Dallas, Chief Product Officer, Global eCommerce at Worldpay said: "The first age
of digital payments kicked off with the eCommerce boom in the early 2000s when companies
like PayPal and AliPay introduced eWallets to the mainstream. The second phase coincided
with the rise of the smartphone at the beginning of the decade, and we've since seen a
proliferation of new mobile apps that quickly raised the bar for convenience in payments."

    Dallas added: "However, with so many options being rolled out so quickly, a sense of
app fatigue has begun to set in leaving both consumers and merchants unsure of which
approach is best and questioning the convenience of using multiple eWallets. I expect the
next few years will see a consolidation of the market as the public hones in on their
preferred payment methods and conscientious merchants feel more confident buying into
technologies that their customers have already embraced."

About the data:  

    The Global Payments Report was compiled using a combination of Worldpay's data and
insights, external findings from Euromonitor, Datamonitor and ystats.com, and secondary
data from over 100 independent sources.  The forward-looking statements and figures
contained in the report are indicative predictions based on Worldpay's own data and
experience and should be treated as such.

    For the full report visit:  

    Global Payments Report
[http://offers.worldpayglobal.com/rs/850-JOA-856/images/GlobalPaymentsReportNov2015.pdf ]

    About Worldpay:  

    Worldpay is a leader in global payments, processing millions of transactions every
day. We provide an end-to-end service including card acquiring, treasury, gateway,
alternative payments and risk management, all of which can be provided with a single
integration to Worldpay. We make global payments simple for many of the world's leading
organisations.

    http://www.worldpay.com/global

    Twitter: @Worldpay [https://twitter.com/#!/worldpay ]
Facebook: http://www.facebook.com/worldpay

Worldpay

CONTACT: For more information please contact: The Worldpay Global eCommerce Press Office: Worldpayecommerceteam@golin.com

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