Study: Global digital commerce spending on the rise
Worldwide digital commerce spending shows no sign of slowing, and the rapid adoption of money transfers, social payments and blockchain will drive the acceleration.
Consumer spending of digital commerce will reach $14.7 trillion by 2022, up by 60% on last year’s figure of $9.2 trillion, according to “Digital Commerce: Key Trends, Sectors & Forecasts 2018-2022,” a report from Juniper Research.
According to data, the largest global contributor to payments is currently QR code-based offline purchases for physical goods, a segment which now accounts for one-third of all Chinese in-store payments by value. Although QR codes will have further growth in the Indian subcontinent and Africa, their value will be eclipsed worldwide by online purchases by 2022.
Meanwhile, retailers increasingly offering localized payment mechanisms and reduced friction at checkout through stored credentials, migration from offline to online is likely to accelerate. There will be more moves by traditional bricks and mortar retailers to develop omnichannel strategies, especially as they seek to shore up revenues by using mobile apps both for online purchases and to drive in-store footfall, the study said.
One key area of growth will be money transfer, bolstered by rapid expansion and adoption of social payments. This movement is highlighted by the activities of companies such as PayPal (via its Venmo and Xoom subsidiaries) and Facebook. These players are also in pole position to capitalize on the increasing transition to digital of P2P payments.
Additionally, players across the ecosystem are poised to benefit from implementing blockchain technology for financial settlement. Blockchain would enable increased standardization for payment processing; substantially reduce the risk of error (including double spend) and the time taken for error checking, resulting in faster, more secure and less costly processes. This in turn would allow money transfer companies to become more competitive, reduce fees to end users and thereby experience high usage volumes, according to the study.
Consumer spending of digital commerce will reach $14.7 trillion by 2022, up by 60% on last year’s figure of $9.2 trillion, according to “Digital Commerce: Key Trends, Sectors & Forecasts 2018-2022,” a report from Juniper Research.
According to data, the largest global contributor to payments is currently QR code-based offline purchases for physical goods, a segment which now accounts for one-third of all Chinese in-store payments by value. Although QR codes will have further growth in the Indian subcontinent and Africa, their value will be eclipsed worldwide by online purchases by 2022.
Meanwhile, retailers increasingly offering localized payment mechanisms and reduced friction at checkout through stored credentials, migration from offline to online is likely to accelerate. There will be more moves by traditional bricks and mortar retailers to develop omnichannel strategies, especially as they seek to shore up revenues by using mobile apps both for online purchases and to drive in-store footfall, the study said.
One key area of growth will be money transfer, bolstered by rapid expansion and adoption of social payments. This movement is highlighted by the activities of companies such as PayPal (via its Venmo and Xoom subsidiaries) and Facebook. These players are also in pole position to capitalize on the increasing transition to digital of P2P payments.
Additionally, players across the ecosystem are poised to benefit from implementing blockchain technology for financial settlement. Blockchain would enable increased standardization for payment processing; substantially reduce the risk of error (including double spend) and the time taken for error checking, resulting in faster, more secure and less costly processes. This in turn would allow money transfer companies to become more competitive, reduce fees to end users and thereby experience high usage volumes, according to the study.