eCommerce Growth
Insights Paytech

Omnichannel Retail Experiences Are Driving the Growth of eCommerce Payment Transactions

Global eCommerce payment transactions are forecast to grow from $4.9trillion in 2021 to $7.5trillion by 2026; a 55 per cent jump driven by the increasing presence of omnichannel retail experiences.

 According to a recent study by Juniper Research, entitled ‘eCommerce Payments: Emerging Trends, Opportunities & Market Forecasts 2022-2026‘, the value of global eCommerce payment transactions will exceed $7.5trillion by 2026, from $4.9trillion in 2021. This 55 per cent growth rate will be driven by retailers offering compelling omnichannel retail experiences that increase user eCommerce spend.

The omnichannel retail model provides end-users with the ability to access retail services, including sales and customer support, via multiple channels. The research predicts that these channels, including online, mobile and physical retail locations, will be instrumental for future success.

This is because users expect the same services to be available irrespective of the channel. Additionally, it found that there are increasing appetites for new payment methods within eCommerce checkouts, including Open Banking-facilitated payments and digital wallet one-click checkout buttons.

Accordingly, it recommends that merchants ensure payment options match changing user expectations, or they will be rapidly left behind.

Platforms Must Emulate China’s eCommerce Success

According to the research, the Chinese market will account for over 37 per cent of global eCommerce payments by transaction value by 2026, 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.

Physical Goods Dominate eCommerce Spend

The research forecasts that physical goods will account for 82 per cent of the global eCommerce payments transaction value by 2026. In this way, the data urges payment providers to support BNPL to capitalise on the continuing growth of eCommerce due to the ongoing global 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.

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