Global e-commerce is on track to reach a transaction volume of US$ 11,4 trillion in 2029, marking a growth of 63% compared to the expectation of US$ 7 trillion by the end of 2024. This data was revealed in a study released today by Juniper Research, that attributes this significant development to alternative payment methods (APMs), like digital wallets, direct payments to merchants (P2M) and the 'buy now, pague depois (BNPL, or electronic credit
The report highlights that the supply of APMs has grown substantially in emerging markets, surpassing credit card payments in these countries. The analysis suggests that electronic payment methods, that do not involve cards, shopping habits are changing, especially among unbanked customers in emerging markets. In this way, merchants should consider APMs as an essential strategy to reach new users and markets
As payment service providers (PSPs) offer more APMs, the adequate availability of payment options in the final consumer's cart will be crucial to improving sales conversion rates, the study states. Research suggests that PSPs can increase customer satisfaction by adapting purchase conversions to meet the geographical and demographic needs of consumers, through partnerships with local payment companies
E-commerce transactions
Based on 54,7 thousand data points from 60 countries, Juniper Research predicts that, in five years, 70% of the 360 billion transactions made in e-commerce will be via APMs. Parallely, the company believes that e-commerce companies will invest in logistical improvements to make delivery more viable and attractive to consumers, adding even more value to the sector
With information from Mobile Time
