Consumer Behaviour and Competition Dynamics in Online Payments

We are pleased to share our latest Lear Competition Note, “Consumer Behaviour and Competition Dynamics in Online Payments,” based on the Market Study on Competition in Online Payments prepared for the European Commission by Lear (lead partner), Capgemini, and Verian.

In this analysis, Tommaso Carbonara (Junior Consultant at Lear) and Elena Salomone (Senior Consultant at Lear) delve into the key insights of the study on how consumer preferences and behavioural biases contribute to shaping competition in the sector, drawing on findings of a large-scale survey (over 11,500 respondents across 14 EEA countries) and a behavioural experiment conducted by Verian. The note discusses:

✔️ Evidence from the consumer survey on what drives consumers’ choice of payment methods;
✔️ The results of the behavioural experiment, showing that practices altering the display or positioning of payment methods on merchants’ checkout pages have a significant causal impact on consumer choices;
✔️ The implications of these findings for competition, including their potential to reinforce incumbents’ market power or, alternatively, to support new entrants.

Read the full Lear Competition Note here

Read the full Report here