Global e-commerce payments to surge by 55 per cent in five years
The value of global e-commerce payment transactions will exceed US$7.5 trillion by 2026 – a 55-per-cent increase from last year’s $4.9 trillion, according to Juniper Research.
The company estimates that by 2026, China will account for more than 37 per cent of global e-commerce payments by transaction value.
Juniper says China’s well-established and extensive e-commerce and payments landscape provides greater convenience for users via easily accessible alternative payment methods.
In its report E-commerce Payments: Emerging Trends, Opportunities & Market Forecasts 2022-2026 Juniper says the high growth rate will be driven by retailers offering compelling omnichannel retail experiences that increase the spend of consumers on e-commerce. Those channels include online, mobile and physical retail locations.
At the same time as online shopping demand increases, consumers are demonstrating an increasing appetite for new payment methods when checking out online, such as Open Banking-facilitated payments and digital wallet one-click checkout options. Payment providers should support Buy Now, Pay Later options as well.
“Accordingly, the report recommends that merchants ensure payment options match changing user expectations, or they will be rapidly left behind.”
Retailers around the world should prioritise digital wallets, Open Banking facilitated payments and cryptocurrencies to emulate the e-commerce success experienced in China.
To do so, Juniper recommends that platform providers partner with specialists in these specific emerging payment areas to keep pace with changing merchant expectations around acceptance types.