As the illustration on the left graphically depicts, PIN Debit is most secure form of debit and HomeATM has positioned itself as a prominent force as online debit is set to skyrocket on the web. The following is from Javelin Strategy and Research...Alternative payments will account for an increasing percentage of U.S. online transactions by 2012, according to a recent study from Javelin Strategy and Research.
As I reported last week, Debit card online transaction volume will increase to $93.9 billion by 2012, up from $38.8 billion in 2007, accounting for about 26% of total U.S. online transactions, Javelin says. Online debit volume is expected to grow at a compound annual growth rate of 19.3% through 2012.
(Click the illustration to the right to enlarge it, then hit backspace to return)The growth in online use of debit cards is primarily attributable to the growth in debit card usage in general, although younger consumers are opting for debit cards as a primary online payment option, Javelin says. The emergence of rewards programs linked to signature debit may contribute to growth, according to the study.
Javelin also estimates that online volume from e-mail payment accounts, such as PayPal, will increase to $40 billion by 2012, up from $7.8 billion in 2007, and will represent 11% of total online transaction volume. E-mail account volume, dominated by PayPal, will have a compound annual growth rate of 38% through 2012. Javelin forecasts that the average PayPal transaction at a retail site will reach $40 in 2012, up from $32 in 2007.
Stored-value products—merchant-specific gift cards and network-branded products—will grow at a 43% compound annual growth rate to $32.1 billion in 2012 from $5.4 billion in 2007, Javelin estimates. Stored-value cards will account for about 9% of total U.S. online volume by 2012, propelled by increased growth in multi-channel usage of in-store programs.
In addition, online private label payment card transactions are expected to total $23.7 billion by 2012, up from $5.3 billion in 2007, representing 7% of total online U.S. transaction volume, Javelin says. Private-label transactions will grow at a compound annual growth rate of 35% through 2012.
Editor's Note: If ATMDirect is going to "Own Online PIN Debit" as they mentioned in their "patently absurd" press release, I'd suggest they take little baby steps, the first one being "Acceptance of HomeATM's invitation for a "PIN-OFF" As of right now, they have 27 Days:6 hours and some minutes left to accept. ATMDirect...we're still waiting!
