2018 Global Payments Report - The Digital Wallet Opportunity Around the World - Braintree
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2018 Global Payments Report The Digital Wallet Opportunity Around the World
2018 Global Payments Report 2
Global expansion is a major driver for many If you’re a merchant, digital wallets can make very
good business sense. Easy, transparent, and secure
online businesses, but that objective can
payment options are a win for everyone. With increased
often seem steep or even unattainable marketplace competition, every competitive advantage
without the right tools and expertise. In matters, and removing any friction around the payment
the past, if a merchant wanted to enter process is essential. Combine this with the constant
innovation and disruption in the payments space, and
another international market, they’d likely it’s clear you need to use every opportunity to stay
have to research and integrate various ahead of the curve.
regional payment methods and currencies,
That’s especially true as the world moves toward a
which could add complexity and drain
future anchored in mobile commerce. More and more
resources. On top of that, growth may not users are making purchases on their phones and
be sustainable from one region to the next. other smart devices. They don’t want to fiddle around
with tiny keyboards, small screens, and confusing
In searching for a more agile and scalable
input options. Digital wallets eliminate many of these
strategy, businesses are looking to the drawbacks, whether it’s purchasing via a website or
integration of more ubiquitous payment through using contactless mobile technology.
methods such as digital wallets.
There are other advantages, too — centralizing
transactions can help increase your payment volume
Digital wallets are an increasingly popular way for and reduce your processing fees. Cross-border
consumers to pay for goods and services. The concept payment and international commerce can be simplified
is simple -- users save their payment details with a through digital wallets.
digital wallet provider once, and then checking out
on any website that accepts that particular wallet In 2019, 2.1 billion global consumers
becomes effortless and secure. Every merchant who are expected to use a digital wallet
integrates with that digital wallet automatically receives
to make a payment or send money,
all the consumer payment details they need to process
transactions quickly and effectively. an increase of almost 30% from 2017.
It makes sense from a consumer perspective, too. As a PayPal service, Braintree is uniquely equipped to
They no longer need to enter card numbers on help with your global digital wallet strategy. As your
every website, and can pay without worrying about payments partner, we’ll give you a direct line to the
the security of their data just by entering their login most widely adopted global digital wallet -- with more
and password details. Increasing demands on time than 235 million active user accounts -- alongside
and fear of fraud mean that consumers are naturally credit, debit, Venmo (in the US), and other payment
moving toward payment options that are fast, simple, platforms, as well as all of the features and innovations
convenient, and secure. you need to more easily take your business global.
2018 Global Payments Report 3 What countries offer the biggest advantages for merchants accepting digital wallets? Just where in the world should merchants be looking to take advantage of the digital wallet opportunity? We’re glad you asked. It’s a complex question, but we’ve got you covered. We’ve explored five key regions (through 64 countries, chosen by quality of data available) and taken a deeper look at 13 spotlight countries to identify those that are well- prepared (and some less prepared) for digital wallet options. We’ll start by looking at four global consumer profiles, then explore how ready different regions are for these payment platforms. After that, we’ll dig into the details of individual countries. By the time we’re done, you’ll have the information you need to make an informed choice for increasing your digital marketplace and expanding internationally. Let’s get into it.
2018 Global Payments Report 4
Universal Consumer
Profiles
Every consumer is unique, but integrating These profiles can be found throughout all local,
regional, and international marketplaces. We’ve
digital wallets into your payment options
covered each of these profiles below and also
relies on appealing to a broad range of highlighted what percentage of each type of user
users. To make that easier, we’ve identified can be found in the spotlight countries. This helps
four key consumer profiles to help you make it easier for you to identify countries with
opportunities for digital wallet growth.
hone your approach.
* A note on Japan
Japanese people tend to underreport their behaviors on almost every kind of survey. They regularly
show up in global surveys with results far different (and usually lower) than other developed countries.
Any market research and planning for Japanese consumers should take this into account.
1 The Mobile Toe-dipper
2 The Mobile Irregular
3 The Confident Consumer
4 The Mobile Savant
2018 Global Payments Report 5
Universal Consumer Profiles
These users tend to have an internet connection
1 and mobile phone, but do not typically use their
smartphones in daily life. These consumers are
uncomfortable with having an online presence
The Mobile or purchasing online and are less often affluent.
We don’t believe they’re a key target for digital
Toe-dipper wallet awareness, marketing, or usage.
Low technology and digital
commerce understanding,
comfort, and usage
They are most prevalent in Canada, Japan*, France, Australia, and
the US. They are least prevalent in China, India, South Korea, Mexico,
Brazil, and Poland.
2018 Global Payments Report 6
Universal Consumer Profiles
These users tend to be older than average and
2 typically have lower incomes. They may have a
smartphone but do not use it very often for digital
commerce activities. Although they are slightly
The Mobile more likely to purchase online than the toe-dipper,
they do not make online purchases regularly or
Irregular frequently. We believe they can be a reasonable
segment to target for digital wallet penetration,
and it helps if this is combined with financial literacy
education and dealing with concerns about online
payment and fraud.
Moderate technology and
digital commerce understanding,
comfort, and usage
They are most prevalent in Japan*, Australia, France, Canada, Germany
and Mexico. They are least prevalent in China, India, and South Korea.
2018 Global Payments Report 7
Universal Consumer Profiles
These consumers have an online and social media
3 presence and make use of a smartphone a few
times a week. They typically have mid-range incomes
and good home-based or mobile internet access.
The Confident They take part in a few digital commerce activities
a week and are comfortable with shopping online.
Consumer We believe they’re a good target for digital wallet
market penetration, with an approach focused on
awareness, convenience, and security concerns.
Considerable technology and
digital commerce understanding,
comfort, and usage
They are most prevalent in South Korea, India, China, and Poland.
They are least prevalent in Japan*, Canada, the US, Australia,
and France.
2018 Global Payments Report 8
Universal Consumer Profiles
These consumers use their smartphones and tablets
4 every day. They are typically of the younger generation,
are always “on the go,” are highly educated, relatively
affluent, and may use multiple devices.
The Mobile They are very comfortable interacting and buying
Savant online and are frequent digital commerce users.
They sometimes make multiple online purchases
every week. We believe they’re an excellent target for
digital wallet market penetration, with an approach
focused on ease of use, speed, convenience, and
omni-channel availability.
High technology and digital
commerce understanding,
comfort, and usage
They are most prevalent in China, India, Brazil, and South Korea.
They are least prevalent in Japan*, Canada, Germany, France,
and Australia.
2018 Global Payments Report 9 Regional Overview Before diving into the individual countries, we’ve provided an overview of five key regions around the world, so you can better understand the overall context of the global digital marketplace. Europe North America Latin America APAC Middle East & Africa
2018 Global Payments Report 10
Europe
Eastern Europe presents enormous opportunities for merchants to integrate digital
wallets. Strong access to next-generation broadband, high smartphone usage,
tech-savvy consumers, and the proliferation of online merchants are fueling digital
commerce. The payments landscape in Western Europe, meanwhile, is highly diverse
and more mature. As card penetration increases, digital wallets are likely to become
more attractive to European consumers.
Growth of remote mobile purchases
as % of total digital purchases*
2013 2017
15.1% +15.8% 30.9%
Increase
* Data Includes these select countries in the
region: Poland, Russia, France, Germany,
Turkey, United Kingdom.
Internet usage in Europe — fixed- next few years in Eastern Europe, regulations and initiatives in
line and mobile with 10% to 15% year-on-year Western Europe are encouraging
growth expected. people to move away from cash
Europe is one of the most well-
and toward credit and debit cards
developed global areas for internet Digital commerce and digital and digital wallets. These younger
investment, speed, reliability, and wallet predictions consumers are likely to become
availability. There is substantial
more accustomed to using cards
consumer demand for cellular Digital commerce across the
as they age, leading to durable
data services, and operators have region, especially in Eastern
behavior changes in the market.
invested heavily in mobile-data Europe, is expected to prove
networks. Data consumption is lucrative among the younger EU limitations on surcharges and
expected to rise rapidly over the generation. New government cross-border fees will help ease2018 Global Payments Report 11
Europe
cross-border payments. Visa and Payment type trends in Europe
MasterCard are consolidating and
The most popular payment
expanding their leading positions
methods show sharp division by
in Europe, making the region a
country and culture in Europe.
fertile ground for card growth,
Bank cards are popular in France,
digital commerce, digital wallets,
the UK, and Italy, while invoicing
and cross-border payments.
is the preferred payment method
Potential issues with digital wallet in Germany. PayPal and Amazon
and digital commerce usage Payments are also popular across
the region. This means consumers
A culture of cash transactions already understand some of the
in Eastern Europe impedes advantages of digital wallets.
digital transactions, while older
consumers are generally wary of Card payment transactions
sharing data or buying online. (excluding commercial) in Western
Contactless payments are on the Europe accounted for 43% of
rise in Western Europe, but are consumer payment transactions in
hindered by underdeveloped 2017, matching the global average.
infrastructure and POS acceptance Card payment transactions have
in Eastern Europe. historically seen good growth, and
this is expected to continue in the
Digital wallets in Europe short to medium term. In Eastern
Europe, there is still plenty of room
The markets with the most for digital-commerce growth.
potential are the UK, Germany,
France, Russia, Hungary, and
Poland. This potential is driven
by credit and debit card usage,
cross-border payments, population
growth, GDP growth, and
internet usage. The convenience
and security of digital wallets
are making them an attractive
alternative for consumers.2018 Global Payments Report 12
North America
The growing use of smartphones, increased internet speed and reliability,
and a growing user base of tech-savvy millennials can make both the US and
Canada excellent opportunities for digital wallet growth and integration.
Although the market is already quite saturated, prioritizing convenience and
ease of use can provide a distinct competitive advantage.
Growth of remote mobile purchases
as % of total digital purchases
2013 2017
27.4% +10% 37.4%
Increase
Internet usage in North America — stable cellular and broadband omni-channel strategies. Due to
fixed-line and mobile infrastructure means that almost card-network investment, Canada
all consumers enjoy good has one of the most developed
Canada has a high internet
connectivity and capacity. and secure digital payment sectors
penetration rate, with 90% of
in the world. This underlying
households going online on a Digital commerce infrastructure is vital to Canada’s
regular basis. Three-quarters
strong digital wallet readiness.
of Canadian households have As online commerce becomes
smartphone users, while cellular more prominent north of the US In the US, all types of debit or credit
operators are investing significantly border, the potential for digital cards are experiencing growth
to improve capacity, availability, commerce growth in Canada in card circulation, transactions,
and speed. In the US, a relatively is substantial, especially using or amount spent. Card reward2018 Global Payments Report 13
North America
programs are also popular in In the US, the growing prevalence In the US, POS terminal penetration
America, pushing increased usage of FinTech businesses could disrupt has grown significantly over the last
of cards. An increased number traditional digital commerce few years, and charge cards are
of cards means more consumer payment methods and card the most commonly used payment
choice, and greater opportunities transactions, while card fraud method for remote transactions.
for digital wallet integration to continues to be a major issue for Contact and contactless smart
centralize the storage of multiple merchants, payment processors, cards are both seeing good growth
cards for varying situations. and consumers. and acceptance in the US market.
This move to newer technology
Overall, due to their ease of use, Digital wallets in North America means consumers are more likely
widespread acceptance, rewarding
to adopt digital wallets as a trusted
value, relative security and financial Major opportunities exist in
payment option.
flexibility, the use of financial cards Canada for merchants able to
continues to experience tremendous optimize their social media strategy. Price wars and card reward
growth in the US and Canada over Integrating a digital wallet into programs in the US from diverse
the use of cash. As card usage and this ecosystem would unlock huge payment networks provide an ideal
infrastructure continues to expand, potential in the digital commerce opportunity for consumers who
the need for integrated digital space and allow merchants to want to get more value out of
wallet use and the convenience of market the convenience, security, their cards.
mobile and omni-channel payments and innovation of this type of
will help strengthen the use case payment method. Dedicated
for merchants integrating digital apps and sharing/gig economy
wallets. businesses will continue to be
major revenue generators for
Potential issues with digital wallet digital commerce across the US
and digital commerce usage and Canada.
Small- and medium-sized Payment type trends in North
businesses in Canada are not America
making significant investments
in online commerce, meaning Canada has among the highest
that digital commerce growth social media network penetration
in Canada will likely be limited rates in the world, and 82% of
mainly to larger businesses for the Canadians regularly use social
foreseeable future. Additionally, networks, compared with 75% of
even large merchants in Canada Americans. This means that making
do not yet have properly aligned payments through social media will
social media marketing strategies. likewise increase significantly.2018 Global Payments Report 14
Latin America
Latin America is in the early stages of its digital commerce growth story. Economic recovery
is at an early stage, and digital commerce uptake will face several challenges specific to this
emerging region, including high cash usage and fraud.
Growth of remote mobile purchases
as % of total digital purchases*
2013 2017
11.4% +15.5% 26.9%
Increase
* Data Includes these select countries
in the region: Brazil, Mexico.
Internet usage in Latin America — however, due to government-led increasingly purchasing online,
fixed-line and mobile projects and policies. Mobile mainly on smartphones rather than
connectivity is on the rise, and all computers. At the same time, the
Internet usage and broadband
Latin American markets have more growth of banking services has
penetration in Latin America lags
mobile connectivity than home increased card usage across the
behind much of the rest of the
connectivity. region, with the main incentives
world. Few households can afford
for digital commerce being speed,
fixed-line internet connections due Digital commerce value for money, free shipping,
to high monthly fees. This translates
and access to a diverse product
into revenue challenges and Latin American digital consumers
range. These factors are likely to
reduced infrastructure investment are concentrated in the 25-34 age
enhance the value of digital wallets
for operators. This is changing, bracket, and these consumers are
because they go hand-in-hand with2018 Global Payments Report 15
Latin America
growing card usage and eliminate Third-party payment capabilities, With the increased prevalence of
a big inconvenience for consumers: which came into existence in the mobile devices across the region,
retyping credit card and banking digital era to remove friction in the and the rising use of mobile
data into a small screen. online checkout experience, are phones as magnetic card readers,
not as popular in Latin America as Latin Americans are looking to
Low average incomes and
elsewhere, even among the more mobile devices as the future of
sporadic internet access present
digitally savvy. Since third-party consumer payment transactions.
significant challenges to digital
payment capabilities are a key Proximity payments have struggled
wallet penetration in Latin America.
channel for digital wallets, this will to break into the Latin American
Several areas need to change to
limit the potential for growth. market, and continue to represent
make digital wallets a more viable
a negligible share of total
option, specifically the reliance on Digital wallets in Latin America consumer spending.
a cash-first culture, a lack of good
internet access, limited card- Despite these issues, there are
acceptance infrastructure, and several markets that are expected
concerns about fraud. to see significant digital commerce
growth over the next few years.
Potential issues with digital wallet These markets include travel
and digital commerce usage (especially direct airline bookings),
the growth of online food services,
The lack of strong digital
consumer electronics, and beauty.
connectivity has significantly
Merchants should focus on
impacted digital commerce
educating consumers about online
growth in Latin America.
payment methods and security to
There is also distrust of online build trust in digital wallets.
payment methods, with many
people preferring to buy locally Payment type trends in Latin
using cash. Most Latin Americans America
do not have the incomes of As the proportion of Latin
developed economies, nor the Americans with bank accounts
expected future growth rates grows, credit and debit cards are
of emerging ones. In addition, becoming preferred methods of
digital commerce uptake will payments, and card networks have
remain constrained by a number established themselves as the
of challenges, including high future for payment transactions in
cash usage, fraud concerns, the region. Most Latin American
delivery hurdles, and poor user countries see credit cards as the
experiences. leader in card payment, but debit
cards follow closely behind.2018 Global Payments Report 16
Asia-Pacific
The Asia Pacific region is a fertile growth area. An upsurge in smartphone usage and
mobile commerce provides excellent opportunities, although issues with an urban/rural
divide and a distrust of some online payment methods are obstacles to widespread
digital wallet usage for merchants. Educating users on payment options and financial
literacy will be crucial in this region.
Growth of remote mobile purchases
as % of total digital purchases*
2013 2017
31.5% +33.6% 65.1%
Increase
* Data Includes these select countries in the
region: Australia, Thailand, South Korea,
Japan, Indonesia, India, China.
Internet usage in APAC — fixed-line mobile services have improved Asian consumers use these devices
and mobile digital connectivity with a move extensively to access the internet
toward data services, with several and make purchases. Broad mobile
Asia Pacific has seen strong
countries trialling 5G. In terms adoption and increased access to
investment in digital infrastructure,
of mobile connectivity, the Asia the internet means more consumers
and the region is the global leader
Pacific region is ahead of Eastern have access to mobile payments and
in the number of people online.
Europe, Latin America, and the digital financial services.
Despite this, internet penetration,
Middle East and Africa.
especially fixed-linebroadband, As the usage of smartphones
remains low in certain areas, Digital commerce and tablets grows, the need for
especially rural ones where a convenient payment method
significant percentages of the Asia Pacific is home to some of the increases. Digital wallets are
population still live. Cheap largest smartphone markets, and naturally positioned to provide2018 Global Payments Report 17
Asia-Pacific
the speed, convenience, ease of It is important to bridge these Payment type trends in APAC
use, and security that consumers divides to bring lower-income
Governments in the region are
require. consumers into the digital
using policies and regulations
mainstream, and improve living
Digital commerce is the key growth to reduce cash usage, and this is
standards. Data security and
opportunity. China is the regional improving the uptake of credit
privacy issues are crucial concerns
giant in terms of online transactions, and debit cards. Financial cards
for a large number of internet
but other countries, such as India are being particularly tailored to
users across Asia. This is likely to
and Indonesia, are witnessing individual consumer segments or
remain a major hurdle for a large
healthy uptake. Other markets are professions in Asia. The further
proportion of online users,
also seeing investments in startups segmentation of card spending
including many first-time users in
and growth in digital purchases, is expected to drive greater
rural areas. Digital wallets will need
especially in urban centers. Online adoption in the region. Card
to address this trend, and reassure
transactions are a prime growth growth is attributed to greater
consumers about payment and
area for digital wallets, and access to financial products and
identity security before they are
integrating them into digital services, and an increase in the
used more widely.
commerce payment options is infrastructure necessary for card
a win for both merchants and Digital wallets in APAC payments. As the use of cards
consumers. continues to expand, the need for
Digital wallet uptake in the region integrated digital wallet solutions
Potential issues with digital wallet will be driven by smartphone becomes more important.
and digital commerce usage usage, with a multi-channel
approach focused on mobile However, cash remains the
Despite APAC being the global dominant method of payment in
devices being an optimal strategy.
leader for the number of internet many Asian countries, and many
Merchants should focus on a digital
users, it lags almost all other first-time users continue to prefer
wallet platform that has a wide
regions in terms of the percentage cash on delivery. This is a trend
range of integrations with banking
of the population using the internet that merchants and, ultimately,
providers and card networks.
as a result of a persistent urban/ digital wallets need to address if
rural digital divide and lingering this method of payment is going to
consumer-privacy concerns. become the first choice for Asian
consumers.2018 Global Payments Report 18
Middle East & Africa
A lack of good broadband penetration, low incomes, and a cultural reliance on cash
means that the Middle East and Africa region is not currently ideal for digital wallet
growth. The region is sharply divided in terms of digital commerce readiness, so a
laser-focused approach on specific countries is likely to be the best strategy.
Growth of remote mobile purchases
as % of total digital purchases
2013 2017
35.3% +9.3% 44.6%
Increase
* Data Includes these select countries in the
region: Saudi Arabia, South Africa, United
Arab Emirates.
Internet usage in the Middle East Middle Eastern countries, such Digital commerce
and Africa — fixed-line and mobile as the United Arab Emirates and
The Middle East and Africa remains
Israel, have well-developed fixed-
The use of the internet over fixed- one of the smallest card markets
line networks, and consumers
line and mobile is sharply divided globally, meaning there are ample
enjoy far higher broadband speeds
across this large region. Cellular opportunities for card-based
than African nations. When viewing
services have expanded rapidly merchants willing to invest in the
the Middle East and Africa as one
across the Middle East and Africa region. Higher consumer spending
region, this geographic area ranks
region, lifting living standards is being driven by a rise in incomes,
at or near the bottom globally
and fueling uptake of broadband thanks to rapid urbanization in
across key internet indicators, such
services in urban areas. The region the region, the emergence of the
as mobile internet subscriptions
is currently seeing good growth in middle class, an improved business
and fixed broadband penetration.
mobile broadband subscribers.2018 Global Payments Report 19
Middle East & Africa
climate, and the use of new The region remains hampered Payment type trends in the Middle
technology to reach consumers. by a large unbanked population, East and Africa
cultural barriers regarding certain
Changes needed for an upswing Consumers are slowly shifting from
payment products, inadequate
in digital commerce include cash to card-based payments thanks
payment infrastructure, traditional
expansion of card payment to a rise in the banked population,
spending behavior, and a fear of
infrastructure, conversion of improved infrastructure, and
card fraud. The Middle East and
unbanked consumers, and financial literacy efforts. Card
Africa region is one of the least
overcoming cultural barriers. payments are projected to be the
mature markets when it comes to
Major banks in many markets are fastest-growing payment method.
financial services. Standard credit
investing heavily in increasing Large purchases are likely to be the
cards have struggled to attract
awareness of the benefits and first type of product to shift from
customers, due in part to Islamic
convenience of cards. Digital cash to card payment transactions.
laws preventing usury.
transactions are increasing across
Now that we’ve provided some
the region despite the strong cash Digital wallets in the Middle East context for the various global
culture. Youth in the region are and Africa regions, it’s time to explore
social-media savvy, and this has
Digital wallets are likely to be much individual countries and their
prompted brands to target those
more accepted in specific parts of readiness for digital wallet
consumers.
Africa and the Middle East, and a expansion.
Potential issues with digital wallet focus on certain countries, such
and digital commerce usage as Israel and the UAE, is likely to
deliver the best results in the short
The region has a strong and
to medium term. Targeting more
persistent cash culture. Even those
affluent consumers is also a wise
who do carry a card tend to use
approach, with sectors including
it for cash withdrawals rather than
transport, food and drink, and
direct payments. Sub-Saharan
communications likely to have the
Africa has the highest poverty rate
most potential.
in the world. Almost 800 million
people, or over 90% of the
population, live on less than
$5 a day.2018 Global Payments Report 20 Country Spotlights From the 64 countries for which the data was strongest, we’ve selected 13 that make up a true cross-section of opportunity scores. We know that some combination of these countries often ends up on businesses’ global checklists, and this deep dive can help provide the rationale for your roadmap. Often you’ll find that you don’t need to implement a completely new payments stack in order to capture the majority of buyers in each region, and global wallets like PayPal can take on some of the heavy lifting when it comes to expansion. Let’s explore the usual suspects: Australia Canada United Kingdom United States Brazil Mexico France Germany Poland China India Japan South Korea
2018 Global Payments Report 21
Australia Canada United United
Kingdom States
GDP:
$1.38 $1.65 $2.63 $19.39
USD trillion
POPULATION:
24.5 36.6 65.8 325.4
million people
% OF POP. USING
3RD PARTY PAYMENT
PLATFORMS OR APPS:
27.4% 16.60% 25.90% 22.70%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE
ONLINE:
66% 88% 52% 57%
2013–2017
GROWTH OF PAYPAL
ACTIVE USERS
(2015–2017):
n/a* 1.6% 11.4% 26.9%
TOTAL USERS (2017): 7.5M 6.5M 24.5M 108.5M
DIGITAL WALLET
OPPORTUNITY RANK: 12 21 11 13
Out of 64
*2015 number not published by PayPal2018 Global Payments Report 22
Australia, Canada, United Kingdom,
and United States
Australia, Canada, the UK, and the US are all excellent Digital wallets are already widely used and accepted
countries for digital wallet integration and growth. by merchants and consumers in all countries, and
This is driven by mature economies, strong income highlighting the speed, convenience, efficiency,
levels, financially literate consumers, robust digital and security of digital wallet payments will be a key
infrastructure, and a growing global marketplace with differentiator. There’s also plenty of innovation in the
cross-border purchasing of goods and services. payments landscape, with FinTech companies and
startups becoming more popular. As new ways to pay
Card payment transactions are on the rise, with healthy become more widely accepted, digital wallet growth
competition among providers to attract and retain will likely continue, especially among the younger
customers. Mobile commerce is also on the rise, with generations.
growth in purchasing from smartphones and tablets,
combined with uptake in the contactless payments space.
Consumer profile breakdown:
MOBILE MOBILE MOBILE MOBILE
SAVANT TOE-DIPPER SAVANT TOE-DIPPER
8% 24% 5% 35%
28% 40% 21% 38%
CONFIDENT MOBILE CONFIDENT MOBILE
CONSUMER IRREGULAR CONSUMER IRREGULAR
MOBILE MOBILE MOBILE MOBILE
SAVANT TOE-DIPPER SAVANT TOE-DIPPER
9% 20% 14% 24%
38% 33% 27% 35%
CONFIDENT MOBILE CONFIDENT MOBILE
CONSUMER IRREGULAR CONSUMER IRREGULAR2018 Global Payments Report 23
Percentage of internet-connected population using the internet
88% 90% 94% 79%
2.4 to 3.4 $40,000–$60,000 10% to 30%
debit and credit cards in circulation approximate average income of major merchant traffic is cross-border
per capita
These countries have strong, established More so than most other nations, a great
Credit cards, debit cards, and bank economies with healthy average incomes deal of online commerce traffic comes
accounts are all widely used and across major parts of their populations. from outside these individual countries.
understood throughout these This means more disposable income for This is especially pronounced in the
countries. There are strong incentives discretionary online purchases. US, where only 70% of traffic to major
for consumers to use cards as their merchants originates in the country.
primary payment method, including Digital wallet outlook: Good -- a healthy
loyalty and reward programs. income means consumers have more Digital wallet outlook: Excellent --
choice in what and where to purchase cross-border payments are a major
Digital wallet outlook: Excellent -- online, and digital wallets can be a advantage of digital wallets. Promoting
consumers in these countries are familiar deciding factor in where they spend the ease of use of ordering and paying
with using credit and debit cards to make their money. internationally can significantly benefit
payments in person or online. Marketing consumers.
the convenience and speed of digital
wallets is key.
50% to 67% 8% to 14% Up to 1.1%
Between half and two-thirds of the of spending is on digital commerce of transactions are made using mobile
population are smartphone users transactions contactless technology
Smartphones and tablets are well- Digital commerce is an established way Although still in its infancy, contactless
established devices across all these of doing business in these countries. transactions via smartphones are on
countries. This is supported by a Consumers are already spending the rise. While uptake is still low, this
strong digital infrastructure, including significant amounts purchasing goods will likely increase as mobile-enabled
widespread broadband and mobile and services online. payment infrastructure rolls out.
communications provision. Almost 5%
of all transactions in Australia are made Digital wallet outlook: Excellent -- Digital wallet outlook: Good -- digital
on a mobile device. consumers do not need to be convinced wallets are a key enabler of contactless
to spend money online, and education and mobile-commerce payments,
Digital wallet outlook: Excellent -- a can instead focus on the speed, security, with convenience being a major
mature digital environment is a key to and effectiveness of digital wallets. deciding factor.
strong ecommerce growth and digital
wallet usage, especially on smartphones.2018 Global Payments Report 24
Brazil Brazil is now emerging from a deep
recession and consumer confidence
is increasing. Digital commerce
transactions are expected to increase
significantly over the next few years,
with more consumers opening bank
accounts and accessing debit and
credit cards. Two-thirds of large
GDP: merchants in the country do not offer
digital wallet payment options, making
$2.07 this a good opportunity for merchants
USD trillion
to integrate digital wallets and gain a
POPULATION: competitive advantage.
209,288,300
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
25.10%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
79%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 42
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
29.6%
Total users (2017): 3.5M2018 Global Payments Report 25
Consumer profiles in Brazil
MOBILE SAVANT MOBILE TOE-DIPPER
19% 16%
62%
Percentage of internet-
connected population
38% 27% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
57% 33% 2019 2.37
of online consumers regularly of merchants offering digital an end to Brazil’s economic debit or credit cards
make digital commerce wallet options woes is in sight per capita
purchases
Only a third of the largest Brazil has had a significant Brazil remains the largest
More than half of the internet- merchants in Brazil currently recession over the last few market for cards in the region,
connected population in offer digital wallet options years. There are now signs with significant growth in
Brazil use their smartphones, to consumers. There is a of growth and strengthening both debit and credit cards.
tablets, or computers to make clear gap in the market for consumer confidence, This is particularly true of the
online purchases. Digital merchants to offer more although incomes are still years preceding the country’s
commerce for big-ticket items payment options to mobile- fairly low. recent economic recession.
is particularly common. savvy consumers.
Digital wallet outlook: Digital wallet outlook: Good
Digital wallet outlook: Digital wallet outlook: Caution -- take into account -- growth in debit and credit
Excellent --digital commerce Excellent -- a great disposable income trends in cards and infrastructure
has great potential in Brazil. opportunity to encourage the country. means greater digital
large merchants. commerce possibilities.2018 Global Payments Report 26
Mexico Mexico is a challenging country
for digital wallet penetration today,
but its future growth prospects are
strong. Currently, only about half
the population has bank accounts,
and only a third has smartphones.
Digital commerce is still nascent, with
a little more than 5% of transaction
GDP: value currently spent online. But
the country’s large population and
$1.12 growing middle class mean it should
USD trillion
not be overlooked in the future.
POPULATION: Large merchants have already taken
note of digital wallet potential, and
123,518,300 most large merchants already offer
digital wallet payment options.
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
28.20%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
184%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 56
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
33.3%
Total users (2017): 2M2018 Global Payments Report 27
Consumer profiles in Mexico
MOBILE SAVANT MOBILE TOE-DIPPER
13% 16%
59%
Percentage of internet-
connected population
34% 37% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
$9,000 40% 83% 35%
per-capita GDP and cash- of digital commerce users of large merchants in Mexico of households have smart
dependent culture poses buy media online offer digital wallets phone users
challenge
Downloaded media is a The marketplace for digital Just over a third of households
Per capita GDP is only about frequent digital purchase in wallets with large merchants have users with smartphones,
$9,000 in Mexico, and a Mexico, with 40% of digital is well established, which while around 10% have tablet
traditionally cash-dependent consumers reporting they means that digital wallets are users. Despite this, Mexico
culture means that there is make such purchases weekly. already a recognizable part leads the region in total
limited disposable income This includes recorded and of online payments culture. mobile commerce value, and
to spend on smartphone downloadable music, films, has seen tremendous growth
purchases and digital video games, software, Digital wallet outlook: Good in remote mobile phone
commerce transactions. books, journals and, -- consumers are already payments.
magazines. using digital wallets to make
Digital wallet outlook: purchases. Digital wallet outlook:
Caution -- take into account Digital wallet outlook: Good Caution -- although mobile
disposable income trends in -- this is a strong opportunity commerce transactions are
the country. in a focused marketplace. increasing, the absolute
number remains low.2018 Global Payments Report 28
France France provides good opportunities
for digital wallet penetration,
especially through partnering with
merchants which sell big-ticket items.
A quarter of the French population
currently purchases online, although
mobile commerce uptake lags
behind. Any digital wallet marketing
GDP: will need to be supported by
financial education to build trust
$2.58 in new payment systems.
USD trillion
POPULATION:
64,859,600
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
24.80%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
44%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 29
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
19.7%
Total users (2017): 8.5M2018 Global Payments Report 29
Consumer profiles in France
MOBILE SAVANT MOBILE TOE-DIPPER
6% 26%
87%
Percentage of internet-
connected population
29% 39% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
37% 9.8% 24% 1%
of merchants currently of card spending in France is of the population use the of transactions made on a
offering digital wallet online internet to buy products mobile device
options
Although only 3.2% of card French consumers are Despite the growth of digital
Just over a third of the largest transactions by volume are increasingly open to commerce, the majority of
merchants in France currently for online purchases, these shopping online. However, online transactions are made
offer digital wallet options transactions account for there’s a general lack of from a computer rather than
to consumers. There is a gap nearly 10% of spending. This education about payment a tablet or smartphone. The
in the market for merchants suggests the French typically methods available, which French have yet to adopt
to take advantage of more use digital commerce for leads to a general distrust. mobile commerce as a major
payment options. Ten percent more expensive purchases. way to purchase goods.
of traffic to major websites is Digital wallet outlook: Good
cross-border. Digital wallet outlook: Good -- although digital wallet Digital wallet outlook:
-- merchants selling more uptake should be supported Caution -- the mobile
Digital wallet outlook: expensive goods can see with financial education to commerce market in France
Excellent -- a great advantages from introducing build trust. is still in the early stages.
opportunity for merchants digital wallets.
to enhance their ecommerce
strategies.2018 Global Payments Report 30
Germany Germany has some excellent
opportunities for digital wallet
penetration. It leads the region in
cross-border internet traffic, and
the German consumer is already
comfortable with buying online.
However, many German consumers
have concerns around privacy and
GDP: security online. Merchants who use
digital wallets will need to educate
$3.68 consumers about the security and
USD trillion
privacy advantages of this payment
POPULATION: method.
82,545,900
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
42.60%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
47%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 24
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
19.2%
Total users (2017): 20.5M2018 Global Payments Report 31
Consumer profiles
in Germany
MOBILE SAVANT MOBILE TOE-DIPPER
6% 21%
89%
Percentage of internet-
connected population
34% 38% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
18% 29% 41% 30%
of website traffic to of the population already of German consumers of consumer payments in
merchants is cross-border uses the internet to buy disagree with freely sharing Germany made with cash
products information online
A large share of Germany’s Cash still remains a very
web traffic comes from Germans are already familiar Germans believe that privacy popular payment option
outside the country, primarily with using the internet to buy requires special protection, for Germany, and it has
from European countries such online. This level of comfort and are less likely to share also developed a robust
as Austria, the Netherlands, with digital commerce is personal information. Any electronic direct transfer/ACH
and Switzerland. Digital good for digital wallet introduction of digital wallets transaction system.
wallet functionality is useful merchants. will need to be supported
to merchants for cross-border with education and Digital wallet outlook:
payments. Digital wallet outlook: reassurance. Caution -- consumers will
Good -- however speed, need to be incentivized
Digital wallet outlook: convenience, and ease of use Digital wallet outlook: to move to digital wallet
Excellent -- promoting will be key to widespread Caution -- ensure that digital transactions.
cross-border payments will consumer adoption. wallets are supported by
encourage consumers who financial education about
shop internationally. security and encryption.2018 Global Payments Report 32
Poland Poland is a challenging market
for digital wallet introduction.
Expansion here may be difficult,
as digital commerce is hindered
by an aging population, as well
as lower uptake of smartphones
and mobile technology. One area
that will be expanding rapidly is
GDP: contactless mobile commerce
payments, and investment here is
$0.52 likely to yield better results.
USD trillion
POPULATION:
38,433,000
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
21.80%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
125%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 48
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
n/a*
Total users (2017): 1M
*2015 number not published by PayPal2018 Global Payments Report 33
Consumer profiles in Poland
MOBILE SAVANT MOBILE TOE-DIPPER
11% 16%
74%
Percentage of internet-
connected population
41% 33% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
4.4% 0.1% 34% 16%
of spending is on digital of transactions are of Polish consumers are of the population is over 65
transactions made using contactless, smartphone users
smartphone technology Poland has an aging
Digital commerce uptake in Although most Polish population, and only 1.2% of
Poland is still fairly low due Although only one in a consumers currently use the Polish consumers aged 60 or
to a strong cash culture. thousand transactions internet, just over a third over shop online each month.
Although digital commerce is currently made using have smartphones, and only Targeted marketing for areas,
will grow over the coming contactless smartphone 16% participate in digital such as personal services
years, a targeted approach technology, Poland is commerce. This is likely to and healthcare, is needed
on specific ecommerce expected to experience very increase as investments to reach this demographic.
sectors, such as airline flights rapid growth in contactless in wireless broadband
and consumer electronics is payments. It is expected encourage mobile Digital wallet outlook:
expected to yield the best to be the largest proximity commerce uptake. Caution -- it can be difficult
results. payments market in the to build trust in digital
region in 2020. Digital wallet outlook: commerce and online
Digital wallet outlook: Caution -- mobile commerce transactions with older users.
Caution -- a targeted Digital wallet outlook: is still in the early stages, but
approach on specific digital Good -- early investment in mobile data networks are
commerce growth sectors is contactless digital wallet being upgraded.
likely required. integration will help take
advantage of future payment
transition.2018 Global Payments Report 34
China China is a prime target for digital
wallet market penetration. The
growing number of consumers
with bank accounts and cards,
together with a fast-growing
payment infrastructure, is driving
strong digital commerce growth.
Alipay is paving the way for digital
GDP: wallets, and there are plenty of
opportunities for merchants to
$12.24 offer more digital wallet options.
USD trillion
POPULATION:
1,382,710,000
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
81.60%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
265%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 25
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
n/a*
Total users (2017): 1M
*2015 number not published by PayPal2018 Global Payments Report 35
Consumer profiles in China
MOBILE SAVANT MOBILE TOE-DIPPER
38% 6%
56%
Percentage of internet-
connected population
42% 14% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
4.6 87% 2.8% 14%
cards in circulation per capita increase in banked of all transactions made on a of website traffic to
populations mobile device merchants is cross-border
China’s rapid adoption of
financial cards for payments China, together with India, China leads all researched A relatively higher percentage
and financial services to large accounted for nearly 90% markets in mobile commerce. of traffic to the biggest
portions of its population has of all global population Two-thirds of households merchants in China comes
contributed to the creation of movement from being have smartphone users, from outside the country.
some of the largest payment unbanked to getting a and they have a high Fourteen percent comes
players in the market. These bank account between proportion of technically from outside China, primarily
companies are now expanding 2012 and 2017. savvy consumers who want Taiwan, Hong Kong, the US,
throughout the region into to buy online. and India.
previously underserved areas. Digital wallet outlook:
Excellent -- banked Digital wallet outlook: Digital wallet outlook:
Digital wallet outlook: consumers, card adoption, Excellent -- digital commerce Excellent -- promoting
Excellent -- there are powerful and a growing payment is rising rapidly across the cross-border payments can
opportunities for digital infrastructure is vital for country, with significant incentivize consumers who
wallet uptake. Providers such digital wallet growth and growth in mobile commerce purchase internationally.
as Alipay have paved the way acceptance. payments.
for consumers to seek out
and merchants to integrate
more digital wallet options.2018 Global Payments Report 36
India India remains a low-income, cash-
based society with limited internet
connectivity especially in rural
regions. This has led to a low
uptake in digital commerce overall.
Fortunately, things are changing in
urban areas and consumers there
are adopting digital payments which
GDP: makes the cities and towns ideal
areas for digital wallet growth.
$2.60
USD trillion
POPULATION:
1,306,517,200
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
34.80%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
265%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 35
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
57.5%
Total users (2017): 630K2018 Global Payments Report 37
Consumer profiles in India
MOBILE SAVANT MOBILE TOE-DIPPER
32% 7%
31%
Percentage of internet-
connected population
44% 18% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
100% 0.5% 87% $1,900
of major online merchants of consumers use the internet increase in banked per capita income
already offer digital wallets to buy products populations
Low salaries and disposable
All of the top 30 largest Digital commerce is not yet a Between 2012 and 2017, income mean that online
digital commerce merchants major consideration for Indian India, together with China, shopping for expensive or
in India provide digital wallet consumers. A cash culture accounted for nearly 90% luxury items is out of reach
options to consumers. hinders the rapid uptake of of all global population for many consumers. Only a
online shopping, although movement from being third of Indians are currently
Digital wallet outlook: government demonetization unbanked to getting a bank connected to the internet.
Good -- consumers are is encouraging card uptake. account. The number of POS
already familiar with using terminals in the region has Digital wallet outlook:
digital wallets. Digital wallet outlook: increased by 22.5 million over Caution -- economic and
Caution -- it is important to the last few years. income standards limit
see how digital commerce potential online payment
grows in India over the next Digital wallet outlook: growth.
few years. Excellent -- banked
consumers, card adoption,
and a growing payment
infrastructure are vital for
digital wallet growth and
acceptance.2018 Global Payments Report 38
Japan Japan is an attractive country
for digital wallet expansion.
A combination of a strong digital
infrastructure, a government-
driven move away from a cash
culture, and a high proportion
of technically savvy consumers
provides a fertile environment for
GDP: digital wallet uptake. This needs
to be balanced with Japan’s aging
$4.87 population and concerns over
USD trillion
digital payments and security.
POPULATION:
126,720,000
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
4.30%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
43%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 18
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
53.8%
Total users (2017): 2M2018 Global Payments Report 39
Consumer profiles in Japan
MOBILE SAVANT MOBILE TOE-DIPPER
1% 32%
91%
Percentage of internet-
connected population
using the internet
16% 51% Japanese people tend to underreport their behaviors on almost every kind
of survey. They regularly show up in global surveys with results far different
(and usually lower) than other developed countries. Any market research
CONFIDENT CONSUMER MOBILE IRREGULAR and planning for Japanese consumers should take this into account.
58% 40% 29% 17%
of households have of transactions planned to of Japanese consumers mobile payment growth in
smartphone users be cashless by 2020 already use the internet 2016 is lower than elsewhere
to make purchases in the APAC region
Japan has an extremely The Japanese government
effective and mature digital, is pushing consumers away Digital commerce is already Despite a well-established
broadband, and mobile from cash and wants 40% of a well-understood and digital infrastructure, mobile
infrastructure. This results all consumer transactions accepted way to purchase commerce lags behind the
in extremely high internet to be cashless over the next goods and services in Japan. rest of the region. This is
usage and a majority of the few years. This is strongly due to a combination of low
population under age 60 supported by increasing card Digital wallet outlook: smartphone penetration
having a smartphone. adoption in the country. Excellent -- merchants can among seniors (60+), security
market to technically-savvy concerns among consumers,
Digital wallet outlook: Digital wallet outlook: consumers and highlight the and the maturity of other
Excellent -- a mature digital Excellent -- policies and convenience and speed of payment options, such as
environment is key to legislation are encouraging digital wallet payments. cards and contactless.
strong growth and digital lower-cost payment
wallet usage, especially on platforms, which merchants Digital wallet outlook:
smartphones. offering digital wallets can Caution -- marketing should
take advantage of. be aimed at non-senior
consumers and should
focus on the security and
confidentiality of digital
wallet usage.2018 Global Payments Report 40
South Korea Perhaps more than any other
country, South Korea is ideal for
rapid and widespread digital wallet
adoption. This is driven by the
combination of several factors, such
as a powerful, robust, and innovative
digital infrastructure; technologically
comfortable, educated consumers;
GDP: the widespread use of debit
and credit cards; and a growing
$1.53 acceptance of mobile commerce
USD trillion
and smart-device transactions. This
POPULATION: is also supported by the government
allowing some tax deductions if
50,976,500 consumers make payments with
debit or credit cards.
% OF POP. USING 3RD PARTY
PAYMENT PLATFORMS OR APPS:
12.60%
of internet-connected population
GROWTH OF TOTAL
PURCHASES MADE ONLINE:
90%
2013–2017
DIGITAL WALLET
OPPORTUNITY RANK:
(Out of 64) 10
GROWTH OF PAYPAL
ACTIVE USERS (2015–2017):
40%
Total users (2017): 560K2018 Global Payments Report 41
Consumer profiles in South Korea
MOBILE SAVANT MOBILE TOE-DIPPER
18% 9%
91%
Percentage of internet-
connected population
51% 22% using the internet
CONFIDENT CONSUMER MOBILE IRREGULAR
5.2 62% 59% 6%
credit and debit cards of households have of South Korean consumers of transactions are made
per person smartphone users buy products and services on mobile devices
online
South Korea has one of the South Korea has an extremely Not only are South Korean
highest proportions of card effective and mature digital, Digital commerce is already consumers used to buying
usage in the world, with broadband, and mobile a well-understood and online, they are also
specialized card, loyalty, and infrastructure. This results accepted way to purchase becoming increasingly
reward programs marketed in very high internet usage. goods and services in comfortable using
and targeted to distinct The country has perhaps South Korea. smartphones and tablets
segments of the population. the fastest broadband in the to make purchases.
Cards are widely used and world and is rapidly adopting Digital wallet outlook:
accepted as a convenient 5G technology for mobile and Excellent -- merchants can Digital wallet outlook:
payment method. Internet of Things devices. market to technically-savvy Excellent -- mobile commerce
consumers and highlight the users particularly benefit
Digital wallet outlook: Digital wallet outlook: convenience and speed of from the speed and efficiency
Excellent -- plenty of choice Excellent -- a mature digital digital wallet payments. of digital wallets.
in the card market means that environment is key to
South Koreans are moving strong ecommerce growth
away from cash and receive and digital wallet usage,
tax incentives for doing so. especially on smartphones.You can also read
