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GENERAL METHODOLOGY OF MARKET REPORTS
Secondary Market Research
 The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are
based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and
company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for
reported data. As a result, companies gain a precise and unbiased impression of the market situation.
 Cross referencing of data is conducted in order to ensure validity and reliability.
 The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several
sources. If this is the case, all sources are mentioned on the chart.
 The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.
Definitions
 The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact
definition used by the source (if available) is included at the bottom of the chart.
Chart Types
 Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main
idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time
period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple
answers were possible, which is noted at the bottom of the chart.
Report Structure
 Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,
management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When
available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional
reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.
Notes and Currency Values
 If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In
some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.
 When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR
values are also provided in brackets. The conversions are made using the average currency exchange rate for the respective time period. Should the currency
figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT
Report Coverage
 This report is about innovation trends in global retail and payments. It includes a selection of major market trends arising from the latest technological
innovations, provides examples and cites relevant market statistics. While the main focus was on innovations that influence E-Commerce, online and mobile
payments, the information in this report also includes trends that blur the line between tradition brick and mortar retail and E-Commerce.
Report Structure
 The first chapter summarizes some top predictions regarding technology and innovations in general, unveils expectations of global business leaders and ranks
top 50 companies from various industries which are described as most innovative.
 The remaining two sections in the report are devoted to innovation trends in retail and payments.
 The retail chapter focuses on consumer-facing innovations employed by online and store-based retailers. Innovations primarily aimed at optimizing processes
for merchants, such as warehouse automation and drone delivery, were not covered. The presented innovations are grouped into the following trends:
conversational commerce (including chatbots and voice-activated virtual assistants), the use of augmented reality and virtual reality in shopping, and the Internet
of Things in retail (including automated checkout-free stores and automatic replenishment). An overview of each innovation is included, followed by examples
and related market statistics, such as survey results and projections. Global market statistics are presented first, where available, followed by insights from
selected top markets in various global regions.
 The payment chapter focuses on selected innovation trends in consumer payments. It opens with an overview of selected major innovative technologies and
their application in the payment sector and a ranking of most relevant technologies invested in by global FinTech and financial companies. This section provides
an explanation of each of the four innovation trends subsequently covered with examples and market statistics in the remaining sections: mobile wallets and
contactless payments, artificial intelligence and voice payments, biometric authentication, blockchain and virtual currency. The statistics include the results of
consumer and business surveys, as well as market projections, where available. The geographical coverage includes global information and highlights from
selected top markets.

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DEFINITIONS
 AFRITIFICIAL INTELLIGENCE
Artificial Intelligence (AI) is a technology that can emulate human performance mainly by learning, drawing its own
conclusions, appearing to comprehend complex context, leading natural dialogs with humans, etc.
 AUGMENTED REALITY
Augmented Reality (AR) uses text, graphical, audio and other virtual enhancements integrating them with real objects in
real time. The “real world” component differentiates AR from virtual reality technology which is a virtual simulation of the
real world.
 BIOMETRIC AUTHENTICATION
Any means by which a person can be uniquely identified based on evaluation of one or more distinguishing biological
traits, e.g. fingerprint, voice, retina/iris scan, and facial recognition.
 BLOCKCHAIN
A distributed ledger in which transactions are grouped into blocks, and each of the blocks is chained to the previous
block. The blocks are documented across a network relying on cryptographic trust and other mechanisms. A marking
characteristic of blockchain is absence of central authority, with an update possible only through a consensus of the
participants’ majority.
 CHATBOT
Chat robot, or chatbot, is a program that converses with a customer in natural language via a mobile messenger, website
or SMS. Chatbots typically rely on Artificial Intelligence (AI) for better context comprehension.
 VIRTUAL ASSISTANT
Virtual Assistants are computer-generated characters able to simulate a conversation, deliver information and fulfill
various user commands. Virtual assistants can be installed in smartphones, laptops, voice-enabled speakers and other
digital devices.
 INTERNET OF THINGS
Abbreviated as IoT, the Internet of Things is a network of physical objects with integrated technology which allows them
to communicate, sense or interact with their internal and external environments.
 NFC
Near Field Communication is a set of standards for smartphones and similar devices to create radio communication by
bringing them close together or having them touch each other. In that way, contactless data exchange and transactions
can take place.
 MOBILE WALLET
A software solution that enables consumers to store payment credentials, such as credit or debit card information, and
use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets are installed
on mobile devices which are used to complete payments.
 VIRTUAL CURRENCY
A digital representation of value that has been issued and is controlled by its developers. Unlike real money or its
alternatives, virtual currency is not issued by a central bank, credit institution or an e-money institution. Instead, it is
relying on a system of trust and is used by members of a specific virtual community.
The following expressions and definitions are used in this market report*:
Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective
charts

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TABLE OF CONTENTS (1 OF 4)
1. Management Summary
2. Top Innovation Predictions & Most Innovative Companies
• Global: Top 10 Technology and Innovation Predictions Through 2022, October 2017
• Global: Technologies Perceived as Most Disruptive for Industries and Business Models for the Next Five Years According to Business and
Technology Executives, in % of Respondents, 2016
• Global: List of Top 50 Most Innovative Companies, 2016
3. Innovation Trends in E-Commerce & Retail
3.1. Conversational Commerce: Chatbots and Voice-Activated Virtual Assistant
• Global: Chatbot Trend Overview & Examples, October 2017
• Global: Annual Cost Savings from Chatbots, in USD million, 2017e, 2019f & 2022f
• Global: Share of Companies Which Launched Chatbots or Plan to Launch, in %, H2 2016
• Global: Top Platforms Preferred for Building Chatbots, in % of Respondents Among Businesses, January 2017
• EMEA: Share of Senior Sales and Marketing Executives Using Chatbots for Customer Interactions, in %, 2016 & 2020f
• UK: Predicted Uses of Chatbots and Barriers to Usage, in % of Consumers, May 2016
• France: Breakdown of Awareness and Intention to Use Chatbots, in % of Consumers, November 2016
• Germany: Share of Consumers Who Could Imagine Using Chatbots, in %, and Interest in Potential Chatbot Uses, in % of Consumers Who
Could Imagine Using Chatbots, November 2016
• USA: Breakdown of Likelihood of Purchasing Products/Services from Brands Using a Chatbot, in % of Millennial Internet Users, December 2016
• Global: Voice-Activated Virtual Assistant Trend Overview & Example, October 2017
• Global: Share of User Interactions with Smartphone via Virtual Personal Assistants, 2019f
• Global: Top Uses of Voice-Activated Virtual Assistance Devices, in % of Virtual Assistant Users, by the USA and the UK, by Gender, April 2017
• Global: Perceived Influence of Voice-Activated Virtual Assistance Devices on Shopping Behavior, in % of Virtual Assistant Users, by the USA
and the UK, by Gender, April 2017
• Global: Breakdown of Experience With Voice-Activated Ordering, in % of Generation Z Shoppers, March 2017
3.2. Augmented Reality and Virtual Reality in Shopping
• Global: Augmented Reality and Virtual Reality in Shopping Trend Overview & Examples, October 2017
• Global: Industry Spending on AR/VR in Retail Showcasing, in USD million, 2017e & 2021f
• Global: Industries Expected to Benefit the Most form AR According to Global Business and IT Professionals, in % of Respondents, November
2016

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TABLE OF CONTENTS (2 OF 4)
3. Innovation Trends in E-Commerce & Retail (Cont.)
3.2. Augmented Reality and Virtual Reality in Shopping (Cont.)
• Global: Share of Consumers in Selected Countries Who Heard about VR/AR and Would Consider Shopping Using VR/AR, in %, March 2017
• USA: Interest in Possible Shopping Uses of AR/VR, in % of AR/VR Users, July 2017
• USA: Product Categories Which Consumers are Willing to Shop via AR, in % of Consumers, August 2016
3.3. Internet of Things in Retail: Checkout-Free Shopping and Automatic Replenishment
• Global: Checkout-Free Store Trend Overview & Examples, October 2017
• Asia: Overview of Selected Automated Convenience Stores in Asia, July 2017
• Global: Share of Internet Users Who Believe Automatic Checkout Will be Important in the Future, in %, July 2017
• USA: Breakdown of the Likelihood of Trying Amazon Go, in % of Consumers, by Gender, Age Group and Total, December 2016
• Global: Automatic Shopping Replenishment Trend Overview & Examples, October 2017
• Global: Share of Internet Users Who Believe Online Automatic Replenishment Would be Important to Their Experience in the Future, in %, July
2017
• Global: Share of Generation Z Shoppers Interested in Automatic Replenishment Programs, in %, March 2017
4. Payment Innovation Trends
4.1. Overview of Innovative Technologies in Payments
• Global: Overview of Selected Innovative Technologies in Payments, October 2017
• Global: Most Relevant Technologies for Global FinTech and Financial Companies to Invest In, in % of Respondents, April 2017
• Global: Most Relevant Emerging Technologies for Large FinTech and Financial Companies to Invest In, in % of Respondents in Each Group,
April 2017
4.2. Mobile Wallets & Contactless Mobile Payments
• Global: Contactless Payment Transaction Value, in USD billion, 2017e & 2019f
• Global: Number of Contactless Payment Users of Android Pay, Apple Pay, and Samsung Pay, in millions, 2015 - 2017f
• China: Share of Internet Users Who Use Mobile Payment in Physical Stores, in %, 2016
• China: Payment Transactions Processed via Offline QR Code Scanning, in CNY billion, Q1 2016 - Q1 2017
• Australia: Mobile Contactless Payment Awareness, in % of Individuals, by Total and by Generation, December 2016
• USA: Proximity Mobile Payment Transaction Value, in USD billion, 2016 - 2021f

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TABLE OF CONTENTS (3 OF 4)
4. Payment Innovation Trends (Cont.)
4.2. Mobile Wallets & Contactless Mobile Payments (Cont.)
• USA: Penetration of Apple Pay, Android Pay and Samsung Pay, by Enrolled, Have Used and Frequent Users, in % of Compatible Device
Owners, January 2017
• USA: Merchant Mobile Wallet Ownership, in % of Banked Smartphone Users, and Merchant Mobile Wallet Apps Used, in % of Merchant Wallet
App Users, January 2017
• Western Europe: Mobile Payment Transactions, in EUR billion, 2016 & 2021f
• Western Europe: In-Store Mobile Payment Share of Total Mobile Payment Value, in %, 2016 & 2021f
• Europe: New Technologies That European Multichannel Retailers Are Taking Advantage of, in %, January 2017
• Europe: Share of Millennials Using Mobile Payment Service from PayPal and Apple Pay, in %, by Germany, Italy, the Netherlands, and the UK,
July 2016
• UK: Breakdown of Frequency of Using Mobile Phone to Make Contactless Payments In-Store, in % of Smartphone Users, By Age Group,
Gender and Total, 2016
• France: Breakdown of Belief in That Smartphone Will Become the Main Mean of Payment by 2025, by Payment Amount, in %, December 2016
• Latin America: Share of Consumers Interested in In-Store Mobile Payments, in % of Surveyed Consumers, by Brazil and Mexico, June 2016
• Middle East: Share of Consumers in the Middle East Who Would Opt for Alternative Payment Methods, in %, and Selected Alternative Payment
Methods They Would Opt for, incl. “Mobile Wallet”, in %, May 2016
4.3. Artificial Intelligence & Voice Payments
• USA: Examples of AI-based Advanced Analytics Usage in Payments and Banking, October 2017
• USA: Voice Payment Users, in millions, and Penetration, in % of U.S. Adults, 2017 - 2022f
• USA: Payment Transactions Carried Out Using Voice Command, in % of Voice Users, April 2017
4.4. Biometric Authentication
• Global: Mobile Payment Security Features Demanded by Consumers and Implemented by Businesses, in %, 2016
• Global: Security Authentication Features That Online Shoppers in the USA and the UK Would Consider Setting Up for Online Purchases in the
Next 12 Months, in %, November 2016
• USA: Innovative Authentication Technology for Making and Receiving Payments in 2027 According to U.S. Consumers, in % of Consumers,
June 2017
• Europe: Top Locations Where Consumers Would Want to Use Biometric Authentication for Payments, in % of Respondents, May 2016
• UK: Services that Adults Would be Most Comfortable Using Biometric Identification for, incl. “Authorizing Payments”, in %, September 2015

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TABLE OF CONTENTS (4 OF 4)
4. Payment Innovation Trends (Cont.)
4.4. Biometric Authentication (Cont.)
• Germany: Usage of and Interest in Mobile Payments In-Store and Payments Based on Biometric Identification In-Store, in % of Consumers, and
in % of Retailers, May 2016
• South Korea: Breakdown of Preferred Method of Authentication in Convenient Payment Services, in % of Users, October 2016
4.5. Blockchain & Virtual currency
• Global: Status of Adoption of Blockchain Technology Among Global FinTech and Financial Companies, in % of Respondents, April 2017
• Global: Business Use Cases for Blockchain According to Global FinTech and Financial Companies, in % of Respondents, April 2017
• Global: Blockchain Trends Expected to be Most Important for the Payment Industry According to Industry Participants, in % of Respondents,
April 2017
• Europe: Share of Internet Users Who Believe that Digital Currencies Are the Future of Spending Online, in %, by Selected European Countries,
Australia, and the USA, April 2016
• Japan: Breakdown of Awareness of Virtual Currencies, in % of Internet Users, and Interest in Using Them, in % of Internet Users Who Know
Virtual Currencies, May 2016
• Japan: Locations for Current/Intended Use of Virtual Currencies, incl. “Online Shopping”, in % of Internet Users Who Are Aware of Virtual
Currencies and Are Interested in Using Them, May 2016
• USA: General Payment Methods Used, incl. Online and Mobile Methods, in % of Internet Users, March 2016

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55% of male and 49% of female voice-activated virtual assistant users
in the USA reported fewer in-store purchases due to this device usage.
Global: Perceived Influence of Voice-Activated Virtual Assistance Devices on Shopping Behavior, in % of
Virtual Assistant Users, by the USA and the UK, by Gender, April 2017
in % of Voice-Activated Virtual
Assistant Users
USA UK
Female Male Female Male
I make fewer in-store purchases 49% 55% 28% 29%
I make fewer online purchases
(using traditional web browsers)
16% 24% 27% 29%
I make more online purchases
(via my assistant)
13% 15% 14% 7%
It has no effect on my shopping
behavior
22% 6% 31% 36%
Note: may not add up to 100% due to rounding
Survey: based on a survey of 1,000 consumers in the USA; the number of respondents in the UK was not revealed
Source: Toluna, May 2017

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Internet Users Who Believe
Automatic Checkout Will Be
Important in the Future
47%
Others
53%
47% of Internet users surveyed worldwide in July 2017 believed that
automatic checkout will be important in the future.
Global: Share of Internet Users Who Believe Automatic Checkout Will be Important in the Future, in %,
July 2017
Survey: based on a survey of 15,000 consumers in 15 markets (France, Germany, Italy, India, Spain, Sweden, UK, Canada, USA, Brazil, Chile, Colombia, Mexico, Australia,
China), conducted online in July 2017
Source: Oracle, Morar HPI, September 2017

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