Retailer Online Payment Acceptance in North and Latin America

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Retailer Online Payment Acceptance in North and Latin America

© Finaccord Ltd., 2014 1

Retailer Online Payment Acceptance

in North and Latin America Report prospectus

March 2013

http://www.finaccord.com/

mailto:[email protected]




Prospectus contents

What is the research?

What methodology has been used?

How do retailers surveyed break down?

Which specific retailing groups have been researched

What is the report structure?

What are the key features of the research?

How can the research be used?

How can the PartnerBASE™ be used?

Who can use the research?

What are some of the key findings?

What is the cost and format?

What other reports are available?

How can the research be purchased?

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What is the research?

Retailer Online Payment Acceptance in North and Latin America is a report, based on a survey of

over 1,400 prominent retail brands in 12 countries, about the online payment types that they accept

for purchases made online by their customers. Countries covered are Argentina, Brazil, Canada,

Chile, Colombia Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay and the US.

Means of online payment investigated are payment cards, online accounts, mobile payments, direct

bank transfers and other means consisting mainly of payment on delivery (commonly referred to as

'COD' for 'cash on delivery') and payment upon receipt of invoice.

Moreover, the PartnerBASE™ database that accompanies the report details the payment card

brands, online account providers and mobile payment means accepted by retailers that offer online

shopping, thereby offering clear evidence for the companies that are well-placed both in each

country and across North and Latin America as a whole.






What methodology has been used?

The main research input into this study is Finaccord’s on-going investigation of the involvement in

financial services, in general, and online payment acceptance, in particular, of over 1,400 major

retailing brands across 12 countries in North and Latin America.

In the specific context of this report, the aim of the investigation is to gather top level data concerning

the acceptance of online payment types by the organisations in question, and the payment card

brands, online account providers and mobile payment means with which they work in this context.

Naturally, given that there are literally millions of smaller retailers in total in the territories reviewed, the

majority with just a single outlet, Finaccord has sought to focus on the very largest entities that are

likely to be of most strategic interest to organisations involved in the online payment sector and wider

financial services markets. Indeed, the major retailers break down by category and by country as

illustrated in the graphics overleaf.






How do retailers surveyed break down? (1)

BY TYPE BY DISTRIBUTION MODEL

Fashion, 218

Supermarket /

hypermarket, 288

Consumer

electronics,

236

DIY / furniture /

home, 133

Health and

beauty, 85

Speciality, 107

Fuel, 79

Department store /

variety, 148

Sporting goods, 74

Books and media, 45

Offline only, 631

Online only, 156

Mixed, 626






How do retailers surveyed break down? (2)

BY COUNTRY

US, 501

Canada, 212Brazil, 211

Argentina, 98

Mexico, 83

Chile, 69

Colombia, 54

Peru, 47Ecuador, 46Costa Rica, 34

Paraguay, 30Uruguay, 28






Which specific retailing groups

have been researched?

Among the major retailing groups included in the research are:

Abercrombie & Fitch

Aeon

Ahold

Aldo

Alpargatas

Amazon

American Apparel

AmerisourceBergen

Ann Taylor

Associated Wholesale Grocers

Berkshire-Hathaway Retail

Best Buy

Canadian Tire

Caro Cuore

Carrefour

Casa & Ideas

Casino Group

Cencosud

Charming Shoppes

Chedraui

Chico's

Controladora Comercial Mexicana

Corporación El Rosado

Corporación La Favorita

Costco

D'Avó

Din

Empresas Ripley

Expert International

Extreme Retail

Exxon Mobil

Falabella

Famsa

Furniture Row Companies

Gap

Grupo Carso

Grupo Deib Otoch

Grupo Elektra

Grupo Exito

Grupo Gigante

Grupo Inditex

Grupo Pão de Açúcar

Grupo Vierci

Home Depot

Home Hardware

Houchens Industries

Hudson's Bay Company

IAC

IFH Peru

Katz Group

Kering

Kroger

Limited Brands

L'Oreal

Luxottica Group

Macy’s

Mango

McKesson Pharamceuticals

Men's Wearhouse

Metro

Mimo & Co

Office Depot

Olímpica

Overwaitea

Petrobras

PetSmart

Pintuco

Raley's

Reitmans

Repsol

Safeway

Salcobrand

Savemart

Sears

Seven & I

Shell

Shoppers Drugmart

SHV Makro

Soriana

Staples

Sun Capital Partners

SuperValu

Tengelmann

The North West Company

TJX

Transworld Entertainment

Walmart

Weston

Whole Food Markets

Williams-Sonoma






What is the report structure?

0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology and other related notes.

2. Regional Overview: a pan-American overview of the activity of major retail brands in the field of

online payments. As well as a comparative analysis of the types of payment accepted online by

retailers in each country, this section also investigates across each country the extent to which

MasterCard, Visa and other national and international payment card brands can be used online, the

degree to which PayPal or rival online account firms enjoy wide acceptance, and whether mobile

payment providers are carving out a position for themselves in the online payment space.

3. Argentina: an in-depth analysis of the environment for online payment acceptance among major

retailers in Argentina. The chapter begins by quantifying the online acceptance rate of payment

cards, online accounts, mobile payments, direct bank transfers and other online payment means

before comparing the rates for each of these payment types across ten retailer categories. These

include consumer electronics, department stores and variety retailers, fashion brands, health and

beauty chains, and supermarket / hypermarket brands selling online.

4 - 14: chapters for all other countries are structured along similar lines to that for Argentina.






What are the key features of the research?

Key features of this report include:

• definitive coverage of the involvement in online payment acceptance of over 1,400 major retail

brands in 12 countries across North and Latin America, 55.2% of which have set up an online

shopping facility;

• coverage of 30 different payment card brands accepted online: which card brands are strong in

which countries and with which retailers do they collaborate?

• identification of 17 online account providers in addition to PayPal: which operate in more than one

territory and which offer significant competition to the market leader in particular countries?

• identification of mobile payment products that are accepted online such as Brazil's Oi Paggo: in

which countries has this emerging payment means made the greatest headway?

• analysis of direct bank transfers, payment on delivery (COD) and wire transfers as online payment

means: in which retailer categories are these most likely to be accepted for online payments?






How can the research be used?

You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of

the following ways:

• gain rapid access to a unique pan-American source of intelligence covering virtually all significant

retail brands across an extremely wide range of geographies;

• understand the degree to which online accounts, mobile payments, direct bank transfers and

other online payment types rival payment cards as a means of paying for goods online;

• appreciate in which countries and retailer categories each of these kinds of online payment enjoy

greatest acceptance among major retailers;

• monitor the activity of key national and international competitors in the online payment sector

including Amazon, American Express, Google, MasterCard, MercadoPago, PayPal, PayU, Visa and

Western Union;

• benefit from a comprehensive overview of the environment for retailer online payment acceptance

in North and Latin America, allowing you to plan for likely future scenarios in this sector.





© Finaccord Ltd., 2014

Retailer Type Distribution model Country Product type Product Partner(s)

accepted?

Sport 78 Sporting goods Mixed Argentina Online account Yes Pago Fácil

Sport Line Sporting goods Mixed Argentina Online account Yes MercadoPago

Telgomax DIY / furniture / home Online only Argentina Online account Yes MercadoPago, Pago Fácil, Rapipago

The Coffee Store Speciality Mixed Argentina Online account Yes MercadoPago, Pago Fácil, Rapipago

Tienda Más Chicos Fashion Online only Argentina Online account Yes Pago Fácil, PayPal, Rapipago

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How can the PartnerBASE™ be used?

Filter by type

of retailer

Choose product type Look up

specific retailers Filter by

country

Select distribution

model

Identify partners






Who can use the research?

1. Payment card brands: this study is an up-to-date and comprehensive source of information

about online payment acceptance among major retailers in 12 countries and represents an

indispensable guide to the involvement in this area of close to 800 retail brands that allow

customers to shop online;

2. Providers of other online payment means: online accounts and mobile payments represent a

fast-growing alternative to long-established payment products for consumers making

purchases from web-based retailers – this report examines the evolving environment for firms

providing solutions in these areas;

3. Retailers: online payment acceptance is an important consideration for numerous retail brands

in Europe but what types of online payment do they accept and with which payment providers

do they collaborate in this context?

4. Management consultancies: are you either assisting a retailer with its approach to online

payment acceptance or advising a provider of online payment products with respect to

partnership opportunities with major retail brands? This research will help you to evaluate the

options in retailer online payment acceptance, saving time and effort on researching the

subject yourself.






What are some of the key findings?

1. Among major retail brands in North and Latin America, those

in Brazil and the US are most likely to accept online payments

Source: Finaccord PartnerBASE

0% 20% 40% 60% 80% 100%

% of major retailers accepting any kind of online payment

54.1%

71.1%

41.0%

56.5%

48.1% 26.5%

28.3%

51.8%

33.3% 27.7%

35.7%

65.3%

55.2%

Argentina

Brazil

Canada

Chile

Colombia

Costa Rica

Ecuador

Mexico

Paraguay

Peru

Uruguay

US

Total






What are some of the key findings? (cont.)

2. In Chile, major international payment card brands

face some online competition from local networks


0% 20% 40% 60% 80% 100%

84.2%

84.2%

84.2%

76.3%

52.6%

50.0%

13.2%

7.9%

5.3%

91.4%

91.4%

91.4%

80.7%

41.7%

61.2%

21.1%

16.9%

12.0%

Visa

MasterCard

Diners Club

American Express

Magna

Redcompra

Private

CMR

Cencosud

Unweighted and weighted online acceptance rates

among major retailers of payment card networks








3. By retailer category, direct bank transfers achieve the highest rate of acceptance

in North and Latin America among online consumer electronics brands

0% 20% 40% 60% 80% 100%

Books and media

Consumer electronics

Department store / variety

DIY / furniture / home

Fashion

Fuel

Health and beauty

Speciality

Sporting goods

Supermarket / hypermarket

% of major retailers accepting any kind of online payment

27.8%

31.6%

25.2%

7.5%

10.7%

n/a

6.8%

10.3%

14.5%

8.3%







4. Key findings from the executive summary include:

• across retail brands selling online, 93.7% accepted payment cards making this the most popular

online payment means, followed by online accounts (43.1%), other online payment types such as

payment on delivery (COD) or wire transfer (22.3%), direct bank transfers (17.6%), and mobile

payments (1.0%);

• the highest acceptance rates among online retail brands for online accounts (such as PayPal)

were visible in Argentina, Chile and the US at a respective 67.9%, 61.5% and 52.0% of those

investigated, although they were not accepted at all by online retailers in Paraguay;

• as regards the alternative online payment types identified, the high acceptance rate for Brazil

(which reached 86.0%) was due to that country's use of Boleto Bancário ('Banking ticket'), a

payment method generating an instant invoice due in a short period of time, usually within 24

hours, and payable online as well as through multiple physical locations;

• otherwise, 4.0% of online retailers in the region allowed payments to be collected at the point of

delivery (COD) while 1.7% accepted payments through wire transfer (including through Western

Union's WU Pay retail payment system).






What is the cost and format?

Retailer Online Payment Acceptance in North and Latin America is available as a standard PDF

document. The PartnerBASE™ that accompanies it at no further charge is in Excel format. Costs

for this research set and selected other comparable, international titles are as follows:

* For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For

a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate,

if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available.

Retailer Online Payment Acceptance in North and Latin America GBP 1,295

Global Retailer Consumer Finance and Banking GBP 2,495

Global Retailer Insurance and Assistance GBP 2,495

Global Retailer Online Payment Acceptance GBP 3,495

Global Retailer Payment, Gift and Loyalty Cards GBP 3,495

Retailer Consumer Finance and Banking in the Asia-Pacific Region GBP 995

Retailer Consumer Finance and Banking in Europe GBP 1,295

Retailer Consumer Finance and Banking in North and Latin America GBP 995

Retailer Insurance and Assistance in the Asia-Pacific Region GBP 995

Retailer Insurance and Assistance in Europe GBP 1,295

Retailer Insurance and Assistance in North and Latin America GBP 995

Retailer Online Payment Acceptance in the Asia-Pacific Region GBP 1,295

Retailer Online Payment Acceptance in Europe GBP 1,995

Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region GBP 1,295

Retailer Payment, Gift and Loyalty Cards in Europe GBP 1,995

Retailer Payment, Gift and Loyalty Cards in North and Latin America GBP 1,295






What other reports are available?

Australia GBP 795 France GBP 795 Malaysia GBP 795 South Korea GBP 795

Brazil GBP 795 Germany GBP 795 Mexico GBP 795 Spain GBP 795

Canada GBP 795 India GBP 795 Poland GBP 795 Turkey GBP 795

Chile GBP 795 Italy GBP 795 Russia GBP 795 UK GBP 795

China GBP 795 Japan GBP 795 South Africa GBP 795 USA GBP 795

Retailer Payments, Banking, Insurance and Assistance in...

A variety of country-specific reports and associated PartnerBASE™ datasets about retailer

payments, banking, insurance and assistance are also available from Finaccord, as listed below.

These are based in part upon the same research programs as the multi-country titles but focus

instead on particular countries.

* The same notes apply here as on the previous page






How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord web site available at

http://www.finaccord.com/order_global_rfsr.htm and fill in the online order form, clearly indicating:

• report required

• type of corporate user licence, if required *

• billing name

• address and e-mail address

• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



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Retailer Online Payment Acceptance in North and Latin America

Economy & Finance

Transcript of Retailer Online Payment Acceptance in North and Latin America