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November 18, 2014
mm Written by:
Ralf Ohlhausen
Business Development Director
Payment culture in North America

Credit card heaven

For online retailers North America is the perfect market. Why? Because no market currently delivers more revenue (approx. 36% worldwide in 2012) and is so clear cut about payment methods [1]. The credit card is paramount here. In the USA plastic is used for 71.5% of all online payments and in Canada for roughly two in every three online purchases (65%). So anyone who wants to sell something online in North America has to accept credit cards as a payment method.

Digital wallets are up-and-coming

In the wake of the credit card’s popularity, digital wallets are also gaining increasing momentum. In the USA (17.6%) and above all in Canada (23.3%) this payment method is firmly established, with PayPal being the most popular option. The other payment methods do not make a big impact, accounting for no more than 3 percent (bank transfers in Canada). Mobile payment methods too still have to gain a foothold. In the USA only 1.2% of online purchases are paid in this way and the figure is even lower in Canada at only 0.3%. A relatively large proportion of payments – 7.2% in Canada – are still made with cash.

[1] www.worldpay.com/sites/default/files/Report_Alternate%20Payments_20140313.pdf

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Tags:
credit cards | e-commerce | North America