Reflecting a little more consumer confidence in paying online, market researchers Packaged Facts believes electronic payments should grow from 33 percent of consumer payments two years ago to 43 percent by 2007.
"The growing popularity of electronic payment options has certainly been a boon to the payment processing industry," said Packaged Facts acquisitions editor Don Montuori, announcing the company's new report, “Third Party Processing in North America.” "But other segments of the third party processing market – payroll and, especially, healthcare – have greatly benefited from the move among businesses to outsource processing functions."
The report said e-commerce is the primary fuel for the expected e-payment growth, in hand with international expansion and rising debit transactions, while expanding credit, debit, and other e-payment cards worldwide give card processing businesses significant growth opportunities.
The report also said the Federal Reserve's figures on American consumers and e-banking show households banking by computer jumped "threefold" between 1999 and 2003, with those using debit and smart cards more than doubling.
The report goes on to say that, according to Federal Reserve figures on U.S. consumers and electronic banking, the number of households banking by computer grew threefold between 1999 and 2003. Those using debit and smart cards more than doubled.
Packaged Facts' findings contrast with findings over a year ago from eMarketer, which said e-payment had been slow because of a combination of old consumer pay habits dying hard and the ongoing fear of financial and personal information being compromised.
