Alternative Payment Services: Moving into Traditional Payment Territory

• Current State Of Online Commerce
• Origins of Alternative Payment Services

User Profiles of Alternative Payment Solution Customers

• Teens
• Credit Constrained
• Security Conscious
• Cash-preferred and Slow Adopters

Value of Alternative Payments to Customers

• Simplicity
• Privacy

Value of Alternative Payments To Merchants

• Low Incremental Cost
• Potential Reduction In Processing Fees
• Competitive Alternative Payment Solutions Market
• More Consumer Choice = Higher Sales
• Order Processing Simplicity
• Multi-Channel Integration

• Cash Conversion
  • Paid By Cash
• Credential Management and Payments
  • PayPal
  • Google Checkout
  • Amazon Flexible Payments Service
• Payment Wrappers
  • Pay By Cash
• Direct Billers
• Transactional Credit
  • Bill Me Later
  • PayPal Pay Later

• Figure 1: Mix Of Internet Payment Methods
• Figure 2: Diagram of the PayPal System
• Figure 3: Primary Reasons Consumers Use Bill Me Later Include Convenience, Buying Power and Security
• Figure 4: Alternative Payment Services by Funding Source
• Figure 5: Diagram of Payment Interface