Global eCommerce Revenue will Reach $4.4 Trillion
More CEOs in the wholesale and retail sectors have accelerated the adoption of digital business models. As a result, it’s now relatively easy for anyone to seek out the best product deals online or on their mobile devices, and purchase whatever they need via eCommerce platforms.
This transition has forced many traditional wholesalers and retailers to shift their strategies and increase their digital presence and product availability, with the COVID-19 pandemic bringing the fortunes of those lagging behind into sharp focus.
In particular, both traditional and online retailers are under immense pressure to offer improved shopping experiences and to meet growing consumer demand for omnichannel digital payments, while also adhering to evolving financial services sector regulatory requirements.
Global eCommerce Market Development
That said, the line between physical and digital commerce is becoming increasingly blurred. According to the latest worldwide market study by Juniper Research, transaction values for physical goods sales online will grow from $3.3 trillion in 2020 to $4.4 trillion by 2025 — this 33 percent growth was clearly hastened by the COVID-19 pandemic.
The ongoing global pandemic has fundamentally altered customer behaviors towards eCommerce, with these trends likely to be sustained in the longer term. Further growth in global online purchases will be driven by the increased availability of eCommerce in emerging markets over the next five years.
The new research findings predict that emerging markets will be significant drivers of new growth, with the Indian Subcontinent and Latin America expected to experience the rapid acceleration of physical goods transaction values between 2020 and 2025 — experiencing growth of 116 percent and 82 percent respectively.
This global eCommerce expansion highlights the necessity for stakeholders to address pain points around cross-border payments, including varying local payment regulations and differing consumer payment preferences.
“It is critical for merchants and payment providers to address local regulatory requirements and enable preferred consumer payment methods across all regions, or they will fail to capitalize on the highest growing eCommerce markets,” said Susannah Hampton, an analyst at Juniper Research.
The emerging OEM Pay sector, where payments are made by a smartphone manufacturer-backed wallet — such as Apple Pay & Google Pay — will see a surge in use, with purchase volumes for remote goods anticipated to grow by 730 percent globally between 2020 and 2025.
Moreover, OEM Pay is seeing increasing consumer awareness, which is now being driven by its use in the contactless mobile payments arena.
Outlook for OEM Pay Applications Growth
Juniper analysts predict that OEM Pay will increasingly disrupt established eCommerce payment methods by offering frictionless payments, but also found that the current acceptance of OEM Pay across different merchants is varied.
Juniper now recommends that payment providers focus on maximizing OEM Pay integration to ensure seamless retailer checkout processes and improved user experiences.
However, I anticipate that the shifting sentiment towards Big Tech companies and their huge global influence could impact the future upside potential for OEM Pay services. Antitrust scrutiny is a significant threat to the mobile payments vendor landscape. Therefore, any potential disruption of the eCommerce marketplace could change dramatically if new government regulations are enacted.
Originally published at https://blog.geoactivegroup.com.