Etailers Ringing Up Alternative Pay Systems

Market analysis firm Brulant says nearly one third of 100 leading online retailers have embraced online payment systems other than straight credit card purchases, a jump which represents a 25 percent increase since February 2007. These so-called Alternative Payment Methods include services like Bill Me Later, PayPal, and Google Checkout: Bruland says Bill Me Later saw the highest rate of adoption at 21 percent, with PayPal growing by 19 percent and Google Checkout at 10 percent.

“One of the most surprising findings in our most recent evaluation is the increase in retailers offering all three alternative payment methods,” said Brulant’s Adam Cohen, in a statement. “As recently as February of 2007, none of the retailers we surveyed offered all three methods. Today we find 5 percent adoption of all three, and at a variety of retailers from Toys’R’Us to PetSmart and Rite Aid.”

Brulant speculates that PayPal’s long-established reputation as an online payment service is giving it credibility with both online retailers and online buyers, and accounts for the “surge” of retailers adding support for PayPal in recent months. PayPal’s longer history in the online community may translate to a higher level of trust amongst consumers who are concerned about conducting online purchases with a credit card.

In recent months, both PayPal and Google have also tried to steer adoption of their online payments systems through campaign donations. PayPal has introduced a new PayPal Kit for Non-Profits intended partly to let political candidates channel online contributions to their campaigns through PayPal. Similarly, Google has introduced Google Checkout for Political Contributions, and linked the service to the You Choose ’08 Channel on the company’s popular video-sharing Web site YouTube.

Editors' Recommendations