New Research Explores Emerging International Online Payments Segment Spending Cash Online: Alternative Payment Channels for e-Commerce 2010

Boston, MA - There are billions of consumers around the world who rely on cash to pay for goods and services in their daily lives. But in spite of growing consumer Internet access globally, the gap between consumers' online payment needs and the tools available to meet them is often significant, limiting their e-commerce access.
Mercator Advisory Group's Spending Cash Online: Alternative Payment Channels for e-Commerce 2010 explores this emerging payment market segment with a focus on alternative online payment solutions in international markets that allow consumers to buy online and pay offline using cash. The report also explores market demand and potential, consumer and merchant market segmentation, business models, and business eco-systems surrounding these services.
Case studies of five leading cash-based alternative online payment service providers in international markets are included in the report to illustrate current best practices under different market conditions.


Highlights of the report include:
Many consumers are excluded from online shopping due to a lack of appropriate payment methods that fit their situation and/or preferences.

Lost online sales opportunities from cash-dependent and cash-preferring consumers globally could be tens of billions U.S. dollars a year.

Alternative online payment services that allow consumers to buy online while paying with cash are quickly emerging as an effective way to allow grow online sales and provide more consumers with access to e-commerce.
Broad distribution networks, targeting of key merchants, and reasonable consumer costs are key success factors for cash-based alternative online payment services.

At the same time, service providers offering cross-border payment options and operating in multiple countries may have the long-term competitive edge. Delivering localized applications for different national markets is crucial for players with international vision.

"Cash-based alternative online payments - which allow consumers to shop online while paying offline with cash - open the door to billions of consumers worldwide for equal access to the cost-savings, convenience and other benefits of online shopping," Terry Xie, Director ofMercator Advisory Group's International Advisory Service and principal analyst on the report, comments. "The market opportunities are astonishing over the long term. Those who build their brand awareness and customer loyalty in this market segment will benefit tremendously in competing for a share of the overall online payments market."
One of the 6 exhibits included in this report:
This report contains 31 pages and 6 exhibits.
Companies mentioned in this report include: eBillMe, Ukash, Alipay, CashU, Itzcash, Boleto Bancario, Lianlian Pay, Lakala, Bill Me Later, among others.
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About Mercator Advisory Group
Mercator Advisory Group is the leading, independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors.