Click here to close now.


News Feed Item

Cogent Reports™: PayPal Faces Challenges from a Growing Field of Competitors

While PayPal is better known and long-established, 13 challenger brands including Square and Amazon Payments are gaining recognition and credibility in the rapidly changing payments marketplace, according to Merchant Paymentality™, a Cogent Reports™ study from Market Strategies International.

“Currently, PayPal is the only alternative web- and mobile-based payment processing provider among a field of 35 competitors to earn ‘Star’ status for brand equity, and it is the only brand used by a majority (53%) of micro- to mid-sized businesses and private enterprise owners,” said Keith Bossey, senior vice president of the Financial Services division of Market Strategies. “However, several other non-traditional providers, many of which are much younger than PayPal, have earned the ranking as brand equity ‘Leaders’.”

The Cogent Reports study compiled brand equity rankings based on a combination of brand awareness, consideration and overall brand impression. Results were indexed and then grouped into four levels: Stars, Leaders, Players and Drifters/Rookies. With its exceptional awareness and impression ratings, PayPal essentially defines “Star” status, but with above-average ratings of their own, “Leader” brands are positioned for growth in a space with plenty of room to grow.

Top 14 Non-Traditional Payment Processing
Providers by Brand Equity Score
Rank     Provider     Equity level
1     PayPal     STAR
2     Square     LEADERS
3     Amazon Payments
4     PayPal Here
5     Google Wallet
6     BillMeLater
7     Square Wallet
8     Intuit GoPayment
9     PayPass
11     Apple Passbook
12     PayPal Beacon
13     Mobile Pay on Demand
14     PayWave    

In addition to increasing awareness, wider acceptance of alternative payment solutions is on the rise. According to the study, more than one-third of private enterprise owners and businesses with fewer than 500 employees not currently accepting payments via web account payment services, mobile devices or wireless/mobile wallet solutions plan to do so in the near future.

“There is a seismic shift going on in the payments world right now,” added Bossey. “While it’s true the field is currently dominated by a few established market leaders such as PayPal, Square and Amazon Payments, there is still plenty of opportunity for a host of challenger brands.”

Driving the movement toward wider reception of new payment acceptance alternatives is the belief among merchants that these methods will be less expensive than traditional credit card processing fees and confidence that customers will recognize and appreciate these new payment options.

“Meeting the needs of customers and paying less is a very compelling argument for making the switch,” said Bossey.

Merchant Paymentality also reveals interest in alternative payment solutions is highest among younger decision-makers and businesses at the larger end of the small business spectrum. Another group of early adopters—and an increasingly important segment of the small business market—is private enterprise owners, consisting largely of home- or web-based businesses.

According to Bossey, this latter group represents the leading edge of awareness and acceptance of alternative payment providers. “So, if you want to see where alternative payments are headed, just visit your local food truck at lunchtime and order your payment to go,” he said.

About Merchant Paymentality

In October and November 2013, Cogent Reports interviewed a sample of 2,504 US-based merchants that were recruited from the ResearchNow opt-in online panel. Respondents were either business decision-makers for for-profit companies with fewer than 500 employees and with a total annual revenue of at least $50,000 (89% of the sample) or private enterprise owners who, separate from any full- or part-time employment, own or run a private business enterprise that sells goods or services, either in-person or online, with a total annual sales revenue of at least $25,000 (11% of the sample). All businesses or enterprises must have been operating for at least one year. By applying minimal statistical weighting, the business decision-maker data reported in this study are representative of the US micro to mid-sized business market in terms of number of employees and total annual sales revenue as described by the Small Business Administration and Hoovers’ business databases. Due to its opt-in nature, this online panel (like most others) does not yield a truly random probability sample of the target population. As such, it is not possible to compute a margin of error or to statistically quantify the accuracy of projections. Market Strategies International will supply the exact wording of any survey question upon request.

About Market Strategies International and Cogent Reports™

Market Strategies International is a market research consultancy with deep expertise in communications, consumer/retail, energy, financial services, healthcare and technology. Offering custom research services and syndicated research products, the firm provides insights from more than 75 countries, focused in the areas of brand, communications, CX, product development and segmentation. Its syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and evaluate and monitor their brand and products within the competitive landscape. Founded in 1989, Market Strategies is one of the largest market research firms in the world, with offices in the US, Canada and China.

Read Market Strategies’ blog at FreshMR, and follow us on Facebook, Twitter and LinkedIn.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...