[March 05, 2014] |
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Cogent Reports™: PayPal Faces Challenges from a Growing Field of Competitors
CAMBRIDGE, Mass. --(Business Wire)--
While PayPal (News - Alert) is better known and long-established, 13 challenger brands
including Square and Amazon Payments are gaining recognition and
credibility in the rapidly changing payments marketplace, according to Merchant
Paymentality™, a Cogent
Reports™ study from Market
Strategies International.
"Currently, PayPal is the only alternative web- and mobile-based payment
processing provider among a field of 35 competitors to earn 'Star'
status for brand equity, and it is the only brand used by a majority
(53%) of micro- to mid-sized businesses and private enterprise owners,"
said Keith Bossey, senior vice president of the Financial Services
division of Market Strategies. "However, several other non-traditional
providers, many of which are much younger than PayPal, have earned the
ranking as brand equity 'Leaders'."
The Cogent Reports study compiled brand equity rankings based on a
combination of brand awareness, consideration and overall brand
impression. Results were indexed and then grouped into four levels:
Stars, Leaders, Players and Drifters/Rookies. With its exceptional
awareness and impression ratings, PayPal essentially defines "Star"
status, but with above-average ratings of their own, "Leader" brands are
positioned for growth in a space with plenty of room to grow.
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Top 14 Non-Traditional Payment Processing
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Providers by Brand Equity Score
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Rank
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Provider
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Equity level
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1
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PayPal
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STAR (News - Alert)
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2
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Square
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LEADERS
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3
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Amazon Payments
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4
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PayPal Here
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5
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Google (News - Alert) Wallet
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6
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BillMeLater
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7
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Square Wallet
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8
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Intuit (News - Alert) GoPayment
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9
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PayPass
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10
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Authorize.net
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11
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Apple (News - Alert) Passbook
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12
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PayPal Beacon
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13
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Mobile Pay on Demand
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14
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PayWave
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In addition to increasing awareness, wider acceptance of alternative
payment solutions is on the rise. According to the study, more than
one-third of private enterprise owners and businesses with fewer than
500 employees not currently accepting payments via web account payment
services, mobile devices or wireless/mobile wallet solutions plan to do
so in the near future.
"There is a seismic shift going on in the payments world right now,"
added Bossey. "While it's true the field is currently dominated by a few
established market leaders such as PayPal, Square and Amazon Payments,
there is still plenty of opportunity for a host of challenger brands."
Driving the movement toward wider reception of new payment acceptance
alternatives is the belief among merchants that these methods will be
less expensive than traditional credit card processing fees and
confidence that customers will recognize and appreciate these new
payment options.
"Meeting the needs of customers and paying less is a very compelling
argument for making the switch," said Bossey.
Merchant Paymentality also reveals interest in alternative payment
solutions is highest among younger decision-makers and businesses at the
larger end of the small business spectrum. Another group of early
adopters-and an increasingly important segment of the small business
market-is private enterprise owners, consisting largely of home- or
web-based businesses.
According to Bossey, this latter group represents the leading edge of
awareness and acceptance of alternative payment providers. "So, if you
want to see where alternative payments are headed, just visit your local
food truck at lunchtime and order your payment to go," he said.
About Merchant Paymentality
In October and November 2013, Cogent Reports interviewed a sample of
2,504 US-based merchants that were recruited from the ResearchNow opt-in
online panel. Respondents were either business decision-makers for
for-profit companies with fewer than 500 employees and with a total
annual revenue of at least $50,000 (89% of the sample) or private
enterprise owners who, separate from any full- or part-time employment,
own or run a private business enterprise that sells goods or services,
either in-person or online, with a total annual sales revenue of at
least $25,000 (11% of the sample). All businesses or enterprises must
have been operating for at least one year. By applying minimal
statistical weighting, the business decision-maker data reported in this
study are representative of the US micro to mid-sized business market in
terms of number of employees and total annual sales revenue as described
by the Small Business Administration and Hoovers' business databases.
Due to its opt-in nature, this online panel (like most others) does not
yield a truly random probability sample of the target population. As
such, it is not possible to compute a margin of error or to
statistically quantify the accuracy of projections. Market Strategies
International will supply the exact wording of any survey question upon
request.
About Market Strategies International and Cogent Reports™
Market
Strategies International is a market research consultancy with deep
expertise in communications, consumer/retail, energy, financial
services, healthcare and technology. Offering custom research services
and syndicated research products, the firm provides insights from more
than 75 countries, focused in the areas of brand, communications, CX,
product development and segmentation. Its syndicated products, known as Cogent
Reports, help clients understand the market environment, explore
industry trends and evaluate and monitor their brand and products within
the competitive landscape. Founded in 1989, Market Strategies is one of
the largest market research firms in the world, with offices in the US,
Canada and China.
Read Market Strategies' blog at FreshMR,
and follow us on Facebook,
Twitter
and LinkedIn.

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