Fewer People Using Credit Cards To Buy Online
By Anna Johnson on January 15th, 2009Research by eMarketer indicates that, while most people buy goods and services online with credit cards, credit card usage is declining.
Based on data from a January 2009 Javelin Strategy and Research study, it appears that credit card purchasing will continue to grow by a little less than 6 percent in compound annual growth, reaching $107 billion by 2013, up from $81 billion in 2008.
However, at the same time, the percentage of credit card purchases online is predicted to fall from 59 percent in 2007 to 40 percent in 2013, as alternative payment forms such as private-label and prepaid cards gain traction.
In particular, Javelin Strategy and Research estimates that payments via services such as PayPal will grow from 7 percent in 2007 to 10 percent in 2013, while debit card usage will grow from 26 percent in 2007 to 30 percent in 2013, prepaid cards will grow from 4 percent to 13 percent, private label cards will grow from 3 percent to 7 percent, and ‘bill me later’ payment types will remain at 1 percent.
Source: eMarketer, “How Do Online Buyers Pay?” eMarketer, January 14, 2009
