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Alternative payments to boost the number of US online transactions 4/22 EPNN A study shows that alternative payment methods will lead to an increasing % of US online transactions by 2012. The volume of debit card online transactions will reach $93.9b by 2012, rising from $38.8b in 2007, representing nearly 26% of the total US online transactions. Forecasts predict that online debit will grow at a compound annual rate of 19.3% until 2012. The growth in online use of debit cards implies a growth in debit card usage, regardless of the fact that younger consumers have the tendency to choose debit cards as the main online payment option. The emergence of rewards programs in relation to signature debit plays an important role, as it leads to this growth. Online volume generated by e-mail payment accounts, including PayPal, will grow to $40b by 2012, as compared with $7.8b in 2007, & it is expected to account for 11% of the total online transaction volume. The e-mail account volume will register a compound annual growth rate of 38% by 2012. The PayPal transaction at a retail site will reach $40 in 2012 per average from $32 in 2007. Stored-value products, including merchant-specific gift cards & network-branded products will rise to $32.1b in 2012 from $5.4b in 2007, registering a 43% compound annual growth rate. Stored-value cards will represent nearly 9% of total US online volume due to an increase in multi-channel usage of in-store programs. Online private label payment card transactions will total $23.7b by 2012, rising from $5.3b in 2007 & accounting for 7% of total online transaction volume in US. Private-label transactions will indicate a compound annual growth rate of 35%.