Digital Commerce Uptake to Exceed 40% of the Global Population by 2021
A new study from Juniper Research forecasts that users of digital commerce services will reach three billion by 2021, or 40% of the global population, up from just 32% this year.
The new research, “Digital Commerce: Key Trends, Sectors & Forecasts 2017–2021,” found that two core sectors will dominate the global digital commerce industry in terms of transaction values:
- Remote payments for digital and physical goods
- Digital banking via bill payment services
These segments together will account for over half of global transaction values by 2021. Significant opportunity for businesses exists, with remote payments for digital and physical goods forecast to account for over 10% of the $20 trillion global retail market in 2017.
Chatbots crucial for engagement
Juniper’s study found that businesses will gain advantage through use of automated customer experiences. With product search and discovery, a key stage in the shopper journey, merchants must adopt conversational interfaces to drive customer engagement and, ultimately, sales. Juniper found that by 2021 the surge in chatbot use will result in positive gains throughout the digital commerce market.
Research author Lauren Foye explained: “Juniper has found that chatbots and natural language search can greatly improve retailer understanding of consumer behavior, so we are witnessing growth in this sector, for example investment by Facebook and Google, as well as the launch of digital assistants by companies such as Amazon.”
Mobile drives digital banking
In addition, the research discovered that digital banking will increasingly envelop a greater proportion of the global population, with adoption approaching one in two adults by 2021.
Juniper found that usage will continue to rise as consumers increasingly opt for banks offering the convenience of rapid, multichannel digital services. This means that providers will need to focus on presenting ever more frictionless digital experiences to their customers, especially if they are to remain market leaders.
The whitepaper, “Digital Commerce — These Two Channels Are Dominating Digital Commerce,” is available to download from the Juniper website together with further details of the research.