Payment barrier to affiliate sector growth

Dissatisfaction with online payment methods could be obstructing the growth of the affiliate marketing industry, it has been claimed.

Recent research by online payment company EntroPay shows that only 23 per cent of affiliate marketers are happy with the current payment method.

This compares to 62 per cent of merchants that claim to be happy with arrangements, although two thirds (67 per cent) of respondents are unaware of the administrative costs.

It can cost up to £25 per transaction to make global payments for affiliate marketing campaigns.

According to Alex Mifsud, chief executive officer of EntroPay, this could be a “major barrier” to growth in the industry.

He said: “Affiliate marketing is one of the most popular sales and marketing channels in the online sector.

“Of all affiliates surveyed, the second biggest challenge to the industry is the speed of making payments, following decreasing marketing budgets.”

According to Brand Republic, car manufacturer Mazda is making its first foray into affiliate marketing.

Clare Crawford, communications coordinator for national advertising at the firm, claimed the move is a new way to reach “potential customers”.