For eBusiness & Channel Strategy Professionals (Length: 7 pages)

Executive Summary (This is a document excerpt)

Seventy-four percent of online shoppers report having used alternative payment methods like PayPal, Bill Me Later, or Google Checkout during recent Web shopping experiences. Although a growing number of retailers offer alternative payment methods at checkout because they can help drive conversion and lower overall transaction costs, consumer acceptance is likely to be a more significant driver of growth. PayPal laid the groundwork by familiarizing many online consumers — primarily eBay buyers and sellers — with alternative payment methods, and other payment providers soon followed. By providing greater convenience and choice than credit cards, and appealing to new customer segments like non-credit card holders, alternative payment methods benefit both online consumers and the retailers that cater to them.