Explosive growth
Explosive growth of eCommerce
According to eMarketer, retail e-commerce sales worldwide in 2015 were USD 1.548 trillion and are projected to increase to USD 4.058 trillion by 2020.
E-commerce is also gaining greater weight in total retail sales globally. It is expected to increase from 7.4% in 2015 to 14.6% in 2020.
Besides, according to Statista, the number of people buying goods or services online will increase from 1.46 billion in 2015 to above 2 billion in 2020.
Figure 7 Payment Market Growth Dynamics
Digital Commerce volume is expected to grow at 12%, but shifting more and more to digital wallet solutions such as PayPal, Apple Pay or new payment solutions on Blockchain, while credit card payments are going to become less lucrative for card networks and issuing banks.
Explosive growth of mCommerce and mobile payments
The mobile share of total e-commerce is expected to increase to 48.5% of total e-commerce from 23.4% in 2015. In some Asian countries mCommerce share expected even more higher up to 80% of eCommerce. It means that we will purchase goods and services through our mobile for more than 2 trillion USD in 2020.
According to Boston Consulting Group, the digital payments space is about to witness significant disruption in the days ahead. Some trends are starting to become clear that will transform the payments landscape globally over the next few years:
· Technology will make digital payments simpler: smartphone penetration, blockchain and cryptocurrencies, ubiquitous connectivity, biometrics, tokenization, cloud computing, and the Internet of Things are a few trends that will shape the way consumers will transact in the future.
· Merchant mobile payment acceptance network to grow 10X by 2020: Mobile-based payment solutions and proprietary payment networks will drive merchant acquisition by offering low-investment solutions that will make economics more attractive for merchants and acquirers, resulting in over 10 million merchant establishments that will accept digital/mobile payments.
While eCommerce industry will be doubled in 5 years, mobile payments in point of sale (contactless or proximity) are expected to grow more than 8-fold between 2016 and 2021 at a compound annual growth rate of 52%. They are started few years ago from 0 and reach 100 bln in 2016 and expected to reach 800 bln in 2021.
There is no surprise because even now about half of smartphone owners use proximity payments and their amount will reach more than 330 mln in 2020
