E Commerce Platform Review:

Transcription

1 November 2010

2 Audience: Treasury personnel and payment specialists for online retailers or multichannel retail organizations with an online presence; merchant acquirers, e commerce platform providers, payment gateway service providers and other payment technology vendors; payment networks; enterprise payments, online banking, product development and product marketing groups within financial institutions. Authors: Beth Robertson, CCM, Director of Payments Research Aleia Van Dyke, Research Associate Contributors: Mary Monahan, Managing Partner and Research Director James Van Dyke, President and Founder Publication Date: November 2010 Price: $2,000 Length: 45 pages 39 charts/graphs Overview E commerce transactions comprise a growing share of the overall retail market, creating a drive for merchants and payments processors alike to expand their platforms for cardnot present (CNP) payments acceptance and processing. While most e commerce processors and platforms facilitate traditional methods of payment, today s offerings differ greatly in international processing focus, fraud and security features, recurring billing capabilities, reporting and other back end processing functionalities. This report reviews 11 leading e commerce platform providers some of which offer multiple platforms for e commerce transactions identifying each platform s key product features and examining each provider s value proposition, market positioning and differentiation. Primary Questions Who are the leading e commerce payment processors, and how do their platform offerings differ? What is the scope of each company s domestic and international card not present processing capabilities? What payment management features does each platform offer to merchants? What back end features (e.g., fraud prevention and security, authorization, chargeback processing) does each e commerce company offer to merchants?

3 Methodology This report provides a comparison of the e commerce platform solutions offered by 11 vendor organizations. Javelin collected the data using a combination of a detailed vendor questionnaire and in depth interviews conducted with senior vendor representatives qualified to address both product and strategy relative to the e commerce market. For instances in which senior vendor representatives were unavailable to provide complete product information, data was obtained through secondary research, company profiles and other reference materials (conferences, news releases, etc.) on the provider s positioning and technology. The report also incorporates quantitative data from a Javelin survey using a random sample panel of 4,998 consumers collected in September 2010 with an overall margin of sampling error of ±1.39 percentage points at the 95% confidence level. In 2010, the U.S. population was estimated to comprise 306 million people, including 232 million adults, 168 million online adults, and 88 million online households (sources: accessed Oct. 25, 2009, and Javelin, September 2010). Note: Many of the vendors reviewed in the context of this report offer multiple platforms for e commerce transaction acceptance and processing. To minimize the complexity of some of the graphical exhibits included in the report, the platform with the greatest number of corresponding features in any category is the platform for the particular vendor that is illustrated. Details about other platforms are included in the body of the report.

4 Table of Contents Overview... 4 Primary Questions... 4 Methodology... 5 Executive Summary... 6 Optimizing the Payments Experience... 7 Vendor and Solution Overviews... 8 Adyen Chase Paymentech CyberSource (Visa) Elavon Fifth Third Processing Solutions First Data First National Merchant Solutions Litle & Co Merchant e Solutions PayPal (RBS) WorldPay Other Vendor Solutions Appendix: Additional Detailed Comparison of Vendors Related Research Companies Mentioned... 45

5 Table of Figures Figure 1: Solution Overview of Selected E Commerce Platform Providers, Part Figure 2: Solution Overview of Selected E Commerce Platform Providers, Part Figure 3: Types of International Payment Options That E Commerce Platform Vendors Offer, Part Figure 4: Types of International Payment Options That E Commerce Platform Vendors Offer, Part Figure 5: Domestic Payment Options That E Commerce Platform Vendors Support by Key Category Figure 6: Fraud and Security Feature Overview for Selected E Commerce Platform Providers, Part Figure 7: Fraud and Security Feature Overview for Selected E Commerce Platform Providers, Part Figure 8: Types of Interface and Connectivity Options That E Commerce Platform Vendors Offer, Part Figure 9: Types of Interface and Connectivity Options That E Commerce Platform Vendors Offer, Part Figure 10: Types of Reports That E Commerce Platform Vendors Offer, Part Figure 11: Types of Reports That E Commerce Platform Vendors Offer, Part Figure 12: Recurring Billing Overview for Selected E Commerce Platform Providers, Part Figure 13: Recurring Billing Overview for Selected e Commerce Platform Providers, Part Figure 14: Number of Alternative Solutions That E Commerce Platform Vendors Support Figure 15: Report Delivery Options That E Commerce Platform Vendors Offer, Part Figure 16: Report Delivery Options That E Commerce Platform Vendors Offer, Part Figure 17: Credit and Signature Debit Options That E Commerce Platform Vendors Offer, Part Figure 18: Credit and Signature Debit Options That E Commerce Platform Vendors Offer, Part Figure 19: Number of Domestic PIN and PINless Payment Options That E Commerce Platform Vendors Support Figure 20: Support for International Processing That E Commerce Platform Vendors Offer, Part Figure 21: Support for International Processing That E Commerce Platform Vendors Offer, Part Figure 22: Domestic PIN and PINless Payment Options That E Commerce Platform Vendors Support, Part Figure 23: Domestic PIN and PINless Payment Options That E Commerce Platform Vendors Support, Part Figure 24: Prepaid, Gift and EBT Payment Options That E Commerce Platform Vendors Support, Part Figure 25: Prepaid, Gift and EBT Payment Options That E Commerce Platform Vendors Support, Part Figure 26: E Check and ACH Payment Options That E Commerce Platform Vendors Support, Part Figure 27: E Check and ACH Payment Options That E Commerce Platform Vendors Support, Part Figure 28: Availability of Level II and III Data from E Commerce Platform Vendors, Part Figure 29: Availability of Level II and III Data from E Commerce Platform Vendors, Part Figure 30: Authorization Features That E Commerce Platform Vendors Support, Part Figure 31: Authorization Features That E Commerce Platform Vendors Support, Part Figure 32: Chargeback Features That E Commerce Platform Vendors Support, Part Figure 33: Chargeback Features That E Commerce Platform Vendors Support, Part Figure 34: Customer Support Features That E Commerce Platform Vendors Support, Part Figure 35: Customer Support Features That E Commerce Platform Vendors Support, Part Figure 36: Online Alternative And Other Payment Options That E Commerce Platform Vendors Support, Part Figure 37: Online Alternative And Other Payment Options That E Commerce Platform Vendors Support, Part Figure 38: Number of Domestic Credit and Signature Debit Options That E Commerce Platform Vendors Offer Figure 39: Number of Domestic Electronic Check and ACH Options That E Commerce Platform Vendors Offer... 43

6 Companies Mentioned Companies Mentioned (RBS) WorldPay First Data Adyen First National Merchant Solutions Chase Paymentech Litle & Co CyberSource (Visa) Merchant e Solutions Elavon PayPal Fifth Third Processing Solutions

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