Research: Merchant Perspectives on Online Alternative Payments

At last year’s Annual Summit, I sat in on a session about alternative payment methods, moderated by Javelin Strategy & Research and featuring panelists from Buy.com and eBags. While retailers are generally pretty familiar with PayPal, the session opened my eyes to how much alternative payments have evolved in recent years, as well as their sheer customer acquisition and sales conversion potential. A year later, I am very pleased to announce the release of the joint Shop.org and Javelin Strategy & Research Study “Merchant Perspectives on Online Alternative Payments”.

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While social media and mobile have dominated the buzz in online retail this past year, the mix of payment options that a retailer offers turns out to be pretty key in actually turning browsers into buyers – something three-quarters of retailers surveyed are eager to capitalize on, according to this study. Indeed, about one in five retailers surveyed told us that alternative payments are a high priority for them in the next year, while another two out of five noted that it was medium priority – not insignificant given tight budgets and the aforementioned focus on social media and mobile. Javelin also shares insights from consumers about the role of different payment methods as they choose to do business with particular retailers and then convert to bona fide buyers. And if you’re curious also how retailers are marketing and measuring alternative payment methods on their sites, download the full report from our site now. 

Finally, if you haven’t already done so, I encourage you to listen to the March 31, 2010 Webinar playback on this topic to further round out the picture.

As always, I look forward to your feedback and thoughts.