While cash may one day become insignificantconsumer payment instrument, it remains right now very relevant toconsumers in all corners of the globe. That said, there is apressing need for cash-based online payment services.
Besides helping financially underserved consumers worldwide,cash-based online payment services can also help ease concerns overe-commerce payment fraud.
A 2012 survey from Eurobarometer indicated some countries are moreconcerned about online fraud than others. Respondents in Cyprus andthe Czech Republic were the most concerned about online fraud with70% and 68% expressing some level of mistrust, respectively.Respondents in Sweden (23%), the Netherlands (29%), and Denmark(32%) were the least concerned. The survey average was nearly50%.
In addition to helping the unbanked and underbanked make onlinepayments and easing online payment fraud concerns, cash-basedonline payment services can assist in minimizing the issue of lowpayment card acceptance in some markets. In countries whererelatively few merchants accept payment cards, cash-basedalternative online and mobile payment services can complementexisting merchant establishments and grant consumers moreopportunities to spend, especially online.
In Mercator Advisory Group’s latest research report, Cash-Based Online and Mobile Payment Services Aroundthe World, we covered in depth the major drivers of demand forcash-based online payment services as well as global cash trends.We also profiled some of the leading and innovative playersoperating in the space including Russia-based QIWI, cashU, whichoperate in the Middle East and North Africa, and UK-based Ukash,among others.
While many in the payments industry have been quick to write offcash as a popular future consumer payment instrument, the factremains cash is a significant medium in the overall payments mixand is contributing to the growth of global online and mobilepayments through cash-based alternative payment services.Furthermore, cash-based online and mobile payment services may havealready carved out a sustainable market niche and will continue toservice consumers moving forward.
Mercator will publish an upcoming research note on cash-basedonline payment services, specifically in the United States.
Follow Tristan Hugo-Webb on Twitter @THugoWebb.