Tuesday, 16 July 2024
Global e-commerce market to grow 55% by 2025
The global e-commerce market is projected to grow more than 50% through 2025 to reach over $8 trillion in transaction value, according to FIS study.
The 2022 Global Payments Report by Worldpay from FIS examines current and future payments trends across 40 countries in five regions. Regarding 2021, the report found the shift to online continued with 13.9% growth in global e-commerce, while the 13.4% growth in point-of-sale (POS) transaction value reflects the steady recovery from the impacts of the COVID-19 pandemic.
Additionally, BNPL is projected to be the world’s fastest-growing payment method both online and in-store between 2021 and 2025, with consumer payment preferences continuing to shift towards digital payment methods.
e-Commerce payment trends
The FIS report found:
- Global consumers continue to embrace BNPL, and by 2025 when it is projected to account for approximately 5.3% ($438 billion) of global e-commerce transaction value, increasing its share from 2.9% ($157 billion) in 2021.
- BNPL is projected to be the fastest-growing e-commerce payment through 2025 in, Argentina, Belgium, Brazil, Canada, Chile, France, Hong Kong, India, New Zealand, Singapore, the UK and the US.
- BNPL accounted for 8.1% of Europe’s regional e-commerce transaction value in 2021, more than twice the share of North America’s 3.8%.
- In 2021, global e-commerce spending exceeded $5.3 trillion in transaction value and is projected to surpass $8.3 trillion by 2025.
- Digital wallets accounted for nearly half (48.6%) of global e-commerce transaction value in 2021, with the report projecting they are projected to represent 52.5% of e-commerce value in 2025.
- Use of traditional payment methods such as cards and cash-on-delivery continue to lose share and combined are projected to account for less than a third of global e-commerce transaction value by 2025.
Point-of-sale (POS) payment trends
The FIS report found:
- The global POS market grew 13.4% in 2021, nearing $46 trillion in transaction value.
- The global POS market is projected to grow by 26.2% between 2021 and 2025 when it is projected to account for nearly $59 trillion.
- Cash is projected to drop from 17.9% ($8.3 trillion) of global POS transaction value in 2021 to 9.8% ($5.8 trillion) by 2025.
- BNPL is the fastest growing payment method at the POS globally, and by 2025 it is projected to account for 1.6% ($941 billion) of global POS transaction value.
- Europe continues to lead in the use of BNPL at the POS, accounting for 1.9% of in-store payments in 2021.
Jim Johnson, head of merchant solutions at FIS said, “Even as more customers return to the store, it is clear that there is no going back on the innovations we are seeing within fintech”.
“Consumers are now mirroring the way they shop online while they are at their favourite retailer – creating a more advanced blend of digital and physical payment options than we saw prior to the pandemic. The implications of this are significant for merchants, who now need to innovate and partner with a technology provider who can help them meet the diverse needs of modern-day consumers,” he said.
Re-disseminated by The Asian Banker
