Online Payments in the US: Navigating The Marketplace

February 11, 2004


New York, NY, USA February 11, 2004

Celent predicts that the online payment industry will capture US$12.5 billion in revenues by 2005, up from US$8.0 billion in 2003.

In a new report, "Online Payments in The U.S.: Navigating The Marketplace," Celent examines the online payment marketplace, its key participants, and the major trends affecting it. Based on over 100 interviews with industry executives, the report is a sweeping review of one of the fastest-growing segments of the U.S. payment industry.

Among its key findings, the report anticipates that innovative payment services providers will experience a 55% revenue CAGR between 2003 and 2005, the industry’s fastest growth. The report points to significant opportunities lying ahead for some payment services providers— such as check authorization providers—and downplays the prospects of others, such as micro-payment ventures. Celent predicts that the e-check’s share of e-commerce value will climb to 9% in 2005, up from 6% in 2003 and 3% in 2000.

"Some issues, like micro-payments, are currently receiving a level of attention that is out of sync with the real opportunities,"

comments Gwenn Bézard, a Senior Analyst at Celent and author of the report.

In reference to e-check’s growing market share, Bézard adds, "The check authorization business might not be the sexiest thing on earth, but that’s one area where sound opportunities lie ahead."

The 43-page report contains 31 figures.

A is available online.

of Celent Communications' Retail Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact for more information.


Send mail to with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents


New York, NY, USA February 11, 2004

Online Payments in the US

Return to report Abstract


  Definitions 5
  Marketplace Trends 8
  Card Issuers 11
  Merchant Processors 13
  Acquiring Banks 15
  Independent Card Networks 18
  Gateway Providers 18
  Fraud Management Services 20
  Check Authorization Providers 22
  Innovative Payment Services Providers 24
  Fraud 26
  Cross-Border E-Commerce 27
  PIN Debit 27
  ACH (e-Check) 28
  Email Payments 30
  Invoicing 32
  Phone Billing 33
  Micro-Payments 35

Sign in to download reports and access personalized information