P2P Goes Pay Anyone

May 10, 2001

Abstract

Boston, MA, USA and Paris, France May 10, 2001

Email Payments Keep Growing   

Unlike most e-payment schemes in recent years, Celent expects leading email payment schemes to grow revenues significantly and turn a profit.

In a new report entitled : An Overview of Email Payments, Celent Communications examines the US email payment market with an in-depth analysis of the revenue drivers, the competitive landscape and a close examination of Paypal, the leading email-based payment system. 

"Although email payments are generally thought to cater almost exclusively to online auctions,  almost half of email payment transactions are actually non-auction related" comments Gwenn B騷ard, author of the report. While online auctions still represent 55% of email payment transactions, Celent expects this figure to rapidly decrease.

Celent forecasts email payment schemes will heavily compete with traditional credit card transactions in the online business-to-consumer market and predicts large e-retailers will massively adopt email payment in the next 12 months. Person-to-Person email payment schemes are morphing into Pay Anyone (PA) solutions. 

Despite banks' traditional dominance in payments, most have failed to rise to the challenges of the email payment market. Citibank is currently the only financial institution to emerge as a challenger to Paypal who dominates the US market with 90% market share. 

"Most players have failed to leverage their auction and merchants services, as well as ignoring controversial, but profitable markets such as online pornography and gambling" adds Mr. B騷ard.

A Table of Contents is available online.

Email Payments Initiatives included in the report:  USA: Achex, Amazon Payment, Amicus-CIBC, AOL Quickcash, Bank of America, Bank One, Ecount, Emoneymail, Billpoint, Brodia, Certapay, Checkfree, Checkspace, Citibank C2it, Clareon, eBay, Earthport, eCash, First Data, FleetBoston, Gmoney, IPin, NYCE, Paymybills, Paypal, Propay, Providian, Tradenable, Tradesafe, Trintech, Wells Fargo, Western Union MoneyZap, Verai, Yahooo! Paydirect. International: Banque Directe/MinutePay, Nochex, Movilapgo, Paybox, eBank/Paypal.

of Celent Communication's Retail Banking research service can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com 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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA and Paris, France May 10, 2001

Email Payments Keep Growing

Return to report abstract  

EXECUTIVE SUMMARY

3

INTRODUCTION

5

SCHEME OVERVIEW

7

MARKET OPPORTUNITY

8

Online Auction

11

 

Small to mid-size e-commerce

14

 

Pure P2P Transactions

17

 

Online Pornography

18

 

Online Gambling

20

 

International payments

22

COMPETITIVE LANDSCAPE

25

 

Players Overview

26

 

Rating Execution Records

31

PAYPAL BUSINESS CASE

36

 

Revenues and Market Share

36

 

Viral Marketing

38

 

Focus on Merchants

39

 

Business model

41

CONCLUSION

48

 

        

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