Welcome!

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
10     Authorize.net
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
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and the...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.