The global e-commerce payments will exceed $7.5t by 2026, study shows

By Puja Sharma

A study from Juniper Research has found that the value of global e-commerce payment transactions will exceed $7.5t by 2026, from $4.9t in 2021. This growth rate of 55% over the next five years will be driven by retailers offering compelling omnichannel retail experiences that increase user eCommerce spending. Omnichannel retail is a model that provides end-users with the ability to access retail services, including sales and customer support, via multiple channels.

A purchase or sale of goods or services online is known as an e-commerce Payment. The electronic commerce payment process utilizes technologies such as mobile commerce, electronic funds transfer, Internet marketing, online transaction processing, electronic data interchange (EDI), and automated data collection. With the widespread use of online shopping and banking, it has become increasingly popular. The security of payment methods as well as the customer experience is constantly evolving.

Consumers around the globe are adopting BNPL, and by 2025 its share of global eCommerce transaction value is predicted to increase from 2.9% ($157 billion) in 2021 to approximately 5.3% ($438b). In Argentina, Belgium, Brazil, Canada, Chile, France, Hong Kong, India, New Zealand, Singapore, the UK, and the US, BNPL is projected to be the fastest-growing eCommerce payment method through 2025. Global BNPL’s share of eCommerce transaction value in 2021 was 8.1% more than twice North America’s 3.8%. By 2025, global e-commerce spending is expected to surpass $8.3t in transaction value.

By 2025, the report projects that digital wallets will represent 52.5% of the eCommerce transaction value globally. In 2021, nearly half (48.6%) of global eCommerce transaction value was handled through digital wallets. By 2025, less than a third of global transaction value will be paid with traditional payment methods such as credit cards and cash-on-delivery.

The eCommerce Payment market economy has improved in recent years. More inputs and technological breakthroughs will be made, as well as a rise in the rate of expansion as a result of active measures to resolve the short-term economic recession.

China’s e-commerce payment Success

The research found that by 2026, China will account for over 37% of global eCommerce payments by transaction value, owing to its established and extensive eCommerce and payments landscape that provides greater convenience for users via easily accessible alternative payment methods.

Additionally, the research recommends prioritising digital wallets, Open Banking facilitated payments, and cryptocurrencies to emulate the eCommerce success experienced in China. To do so, it recommends that platform providers partner with specialists in these specific emerging payment areas to keep pace with changing merchant expectations around acceptance types.

Way forward

The research forecasts that physical goods will account for 82% of the global eCommerce payments transaction value by 2026. It urges payment providers to support BNPL, an alternative payment method that integrates fixed installment plans and flexible credit in eCommerce checkout options, to capitalize on the continuing growth of eCommerce due to the ongoing global Covid-19 pandemic.

• study shows the global eCommerce market is projected to grow 55.3 percent between 2021 and 2025 to reach about $8.3t in transaction value.
• The global point-of-sale (POS) market grew 13.4 percent in 2021 to nearly $47 trillion in transaction value, reflecting a steady recovery from the impacts of the pandemic.
• Buy now, pay later (BNPL) is projected to be the world’s fastest-growing payment method both online and in-store through 2025.