Contactless
Cryptocurrency Europe Paytech

Digital Commerce Spending To Exceed $11.6 Trillion in 2021; Juniper Data Reveals

New data released by Juniper Research has highlighted how digital commerce spending is due to rise 11.5% within 12 months, from the $10.5 trillion recorded last year, to over $11.6 trillion by the end of 2021.

This latest figure encompasses a multitude of spending habits, including money transfer, digital goods purchases, physical goods purchases, digital ticketing purchases, banking bill payments, NFC mobile retail payments, and QR code retail payments.

The research found that the successful adoption of digital solutions during the pandemic has resulted in consumer behaviour becoming increasingly digitally-led, rather than reverting to pre-pandemic norms.

The data also identified that the reactive digital commerce strategies established by merchants during the pandemic need to turn into proactive, long-term strategies that offer the best user experiences, as competition in the digital commerce ecosystem significantly intensifies.

Mobile Leading Digital Commerce Spend

The new research highlighted in the Digital Commerce: Key Trends, Sectors and Market Forecasts 2021-2025 Market Research report found that mobile commerce will account for 73% of all digital commerce transactions by value in 2021; rising to 79% by 2025. Mobile has emerged as the most important way to access services, and although online will remain relevant for higher-value transactions, user experiences must be mobile-first.

Nick Maynard, Lead Analyst, Juniper Research
Nick Maynard, Lead Analyst, Juniper Research

“Mobile apps are the dominant force in digital commerce, with user experiences becoming critical, as products become heavily commoditised,” explains research author Nick Maynard. “Merchants must leverage AI-based analytics to ensure a truly personalised mobile commerce experience, or they will lose out to more digitally adept merchants.”

Remote Physical Goods Purchases are Largest Segment, but Contactless is Growing Rapidly

The research also found that remote physical goods purchases will account for the single largest transaction value of any segment in 2021 at 22% of the total, followed by money transfer and QR code payments. The research identified however that contactless mobile payments will have the highest rate of growth; increasing over 242% in value between 2021 and 2025, as OEM Pay services add spending insights and other value-added services to consolidate gains made during the pandemic.

Author

  • Tyler is a Fintech Junior Journalist with specific interests in Online Banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

Related posts

Spotlight Middle East and Africa: Peer-to-Peer Payments App with Mamo Pay

Richie Santosdiaz

Mastercard Fintech Innovations During the Pandemic

Polly Jean Harrison

E-commerce Integration in China

Avi Nagel