payments on the internet: the demand side presentation for the ecb conference „e-payments without...
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Payments on the internet: The demand side
Presentation for the ECB Conference „E-payments without frontiers“
Dr. Malte Krueger
University of Karlsruhe and PaySys Consultancy GmbH
Karlsruhe, 10 November 2004
Introduction
„Guiding questions“:
Size of demand and main determinants
„Payments on the internet: the demand side“
Differences across Europe
Convergence of needs
Dr. Malte Krueger: The demand side
Need for pan-European surveys
What are we looking at?
Dr. Malte Krueger: The demand side
Internet payment systems
= electronic payments systems intended to facilitate payments in e/m-commerce
How big is the demand for internet payment systems?
A short answer:
Smaller than you might think!
Impossible to provide a reliable estimate of thevolume of internet payments
A look at e-commerce in „real goods“= „extended moto“ model
Moto has been flourishing without internet payments
Adding a new distribution channel should notfundamentally change this
Dr. Malte Krueger: The demand side
C2B Payments
How large is the demand for internet payment systems?
A driver of demand for internet payment systems?
E-commerce in digital goods
Well, at the moment …
Dr. Malte Krueger: The demand side
Advertising95% Per Click
and Subs.5%
Advertising66% “Per Click”
and Subs.33%
Revenue from print media
Revenue from digital content on the internet
Germany 2002
Big demand in some countries(if the only alternatives are cash and cheques)
C2C Payments
Little in others(if there are effcient giro systems)
Dr. Malte Krueger: The demand side
How large is the demand for internet payment systems?
Differences across Europe
Evidence regarding e-commerce
Do critical demand-shaping factors differ?
Dr. Malte Krueger: The demand side
Source EEIGSource EEIG
EU15 citizens who have purchased on the internet(% in 2003)
Differences across Europe
No systematic EU-wide study of internet payments
Do critical demand-shaping factors differ?
Dr. Malte Krueger: The demand side
Credit Card
Debit Giro transfer
Cash upon del.
Belgium 50 33 9
Denmark 10 90
Germany 11 24 27 15
Netherl. 26 23 4
UK 60 30
Sources: BIS, ECR, insites, own estimates
Use of various payment methods on the internet (in %)
IZV: Survey of Consumer Payments on the Internet
Dr. Malte Krueger: The demand side
Carried annually – starting 1998 2004: 7th survey with 13.186 usable responses
Open www-survey
So far: confined to Germany 2005: Austria will be included + possibly, other countries 59 questions covering:
Activity on the internet
Purchase of „real“ goods on the internet Purchase of digital goods on the internet Questions about specific internet payment methods Ways to improve payment methods Personal data
IZV: Survey of Consumer Payments on the Internet
Dr. Malte Krueger: The demand side
A quick sketch of our results
Payment methods used on the internet
N = (10.405-10.914) % of respondents
Mobile Phone 3,3
Prepaid Systems 22,6
Billingsystems 54,9
Credit Card 62,4
e-mail 14,4
Online-Debit 70,3
Online-(Giro-)Transfer 79,0
Paperbased Debit 40,6
Paper based (Giro-)Transfer 53,3
Cash upon Delivery 63,8
Respondents could name more than one method
IZV: Survey of Consumer Payments on the Internet
Dr. Malte Krueger: The demand side
Why have you never bought real goods on the internet?
N = 2.130 % of respondents
No suitable payment method 12,1
Respondents were asked to name the three most important factors
Why have you never bought digital goods on the internet?
N = 3845 % of respondents
No suitable payment method
Respondents were asked to name the three most important factors
13,4
IZV: Survey of Consumer Payments on the Internet
Dr. Malte Krueger: The demand side
Up to what amount would you be prepared phone?
to pay with your mobile
N = 279 % of respondents
Up to 50 € 100,0
Up to 25 Euro 83,5
Up to 50 Euro 62,7
Up to 200 Euro 31,5
More than 200 Euro 16,1
IZV: Survey of Consumer Payments on the Internet
Dr. Malte Krueger: The demand side
Whom do you trust?
N = 9.341 % of respondents
Credit Card Companies
Banks
Telcos
Internet Service Providers
ISOs
No preference 10,9
12,2
17,1
14,0
84,4
59,0
PaySys Consultancy GmbHIm Uhrig 7D-60433 Frankfurt am MainTel.: +49 69 95 11 77 -12E-Mail: [email protected]: www.paysys.de
Thank you!
Universität Karlsruhe (TH)IWW, Sektion Geld und Währung Postfach 69 80 D-76128 KarlsruheTel.: +49 721 608-6329E-Mail: [email protected]: http://www.iww.uni-karlsruhe.de/
Dr. Malte Krüger
PaySys is German member of the Euro-pean Payments Consulting Association
Dr. Malte Krueger: The demand side
A summary of the IZV7 results can be found underhttp://www.iww.uni-karlsruhe.de/IZV