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Spanish Market - What's the breakdown of Online Card Payments? I would like to know the percentage of people who pay for their purchases completely upfront VS those who pay in installments VS those who pay on invoicing VS those who pay on finance plans VS any other types of payment.
introduction
Thanks for your question about how online purchases are paid for in Spain. We found that the four predominant payment methods are: credit/debit cards, PayPal, bank transfers, and cash on delivery.
Upfront vs. delayed payment
You asked for a breakdown of people who pay for their ecommerce purchases upfront, versus delayed payment:
-When paying upfront, 60% of consumers use debit/credit cards, 35% use PayPal, and 7% use a bank transfer. (We worked under the assumption that these methods were used to pay the retailer upfront, as "financing" was listed as its own category.)
-For delayed payment options, cash on delivery was used by 8%, and financing by 7%. "Financing" was not further elaborated on, nor was it broken down by the actual method of payment.
The overlap in the percentages listed above is due to shoppers using more than one payment method for their various online purchases.
Findings: overview
Below you will find analysis of credit/debit cards, PayPal, bank transfers, and cash on delivery as ecommerce payments in Spain.
Findings: Credit and Debit cards
First, it's worth noting that the vast majority of Spain's population has at least one debit or credit card, at 85%. A debit card was used by 61% of ecommerce shoppers, and a credit card was used by 23%.
For all ecommerce card payments, VISA dominates at 71%, followed by MasterCard with 28%, American Express with 0.5% .
Findings: PayPal
PayPal is the second most used ecommerce payment in Spain, but it has declined. In 2015, 72% of online shoppers used PayPal. In 2016, that percentage dropped to 51%.
For online payment systems used in Spain, PayPal still by far dominates with 86% of the market share, followed by Stripe with 8.5%, and Google Checkout at just under 1%.
Findings: bank Transfers
In Spain, 7% of shoppers use a bank transfer as an ecommerce payment, but that number may grow. In 2016, the mobile payment platform Bizum went live in Spain. A collaboration between 30 banks and the Spanish government, Bizum allows for bank transfers on mobile devices, both person-to-person and to retailers. Since Bizum's inception, a total of €40 million has been spent overall via the platform.
Bizum has an aggressive growth plan for the retail market. By 2022, Bizum is aiming for an overall 35% market share in online and in-person commerce.
Findings: cash on delivery
We found that 8% of shoppers used cash on delivery as payment for online purchases. The only other information we found on cash on delivery is that its use is projected to decrease.
additional ecommerce information
We found additional statistics and information that you may find helpful.
(1.) Q1 2017 Ecommerce Statistics
In Spain, ecommerce increased by 24.8% year-on-year during Q1 2017. A total of €6.8 billion was spent on 115 million transactions.
Spanish online shoppers made 55.4% of their purchases from Spanish retailers. Of the remaining 44.6% of purchases, 93% were made from other EU countries.
(2.) Mobile Device Usage
The number of ecommerce shoppers using a mobile device is on the rise. In 2016, half of ecommerce shoppers used a mobile device to make a purchase. This is a 15% increase from 2015.
Looking specifically at mobile device users, 52% reported paying with a debit card, and 17% with a credit card. PayPal was used by 40% of mobile device users.
conclusion
To wrap it up, VISA and Mastercard are the two predominant cards used as ecommerce payment in Spain. PayPal usage has declined, but it still remains the most widely used online payment system.
The mobile payment platform Bizum has aggressive growth plans, aiming for a collective 35% market share in both online and in-person commerce by 2022. While cash on delivery is projected to decrease, we found that 8% of shoppers still used it as payment for online purchases.