While PayPal is better known and long-established, 13 challenger brands including Square and Amazon Payments are gaining recognition and credibility in the rapidly changing payments marketplace. This and other findings are included in the recently released Merchant Paymentality™ study from Cogent Reports, the syndicated division of Market Strategies International.
The Cogent Reports study compiled brand equity rankings based on a combination of brand awareness, consideration and overall brand impression. Results were indexed and then grouped into four levels: Stars, Leaders, Players and Drifters/Rookies. With its exceptional awareness and impression ratings, PayPal essentially defines ¡°Star¡± status, but with above-average ratings of their own, ¡°Leader¡± brands are positioned for growth in a space with plenty of room to grow.
"There is a seismic shift going on in the payments world right now,¡± added Bossey. ¡°While it¡¯s true the field is currently dominated by a few established market leaders such as PayPal, Square and Amazon Payments, there is still plenty of opportunity for a host of challenger brands.¡±
Driving the movement toward wider reception of new payment acceptance alternatives is the belief among merchants that these methods will be less expensive than traditional credit card processing fees and confidence that customers will recognize and appreciate these new payment options.
¡°Meeting the needs of customers and paying less is a very compelling argument for making the switch,¡± said Bossey.
Merchant Paymentality also reveals interest in alternative payment solutions is highest among younger decision-makers and businesses at the larger end of the small business spectrum. Another group of early adopters¡ªand an increasingly important segment of the small business market¡ªis private enterprise owners, consisting largely of home- or web-based businesses.
According to Bossey, this latter group represents the leading edge of awareness and acceptance of alternative payment providers. ¡°So, if you want to see where alternative payments are headed, just visit your local food truck at lunchtime and order your payment to go,¡± he said.
