Worldpay: eCommerce predictions for 2019
Brazil’s eCommerce market is set to increase 39 percent by 2022, reaching US$38bn, as mobile shopping continues to see extreme growth in the coming year and beyond*.
This trend will continue over the next four years as Brazilians become more comfortable with online shopping. However, with 78 percent of Brazilians with smartphones preferring to buy through apps, merchants will need to deliver a shopping experience that is both secure and user-friendly1.
Together, the growth of eCommerce and use of mobile will have a massive impact on payments in Brazil in 2019 and beyond. Based on this context, here are Worldpay’s predictions for the Brazilian eCommerce market over the next 12 months:
- There will be a rapid adoption of eWallets as shoppers increasingly crave the ease and simplicity of a one-touch checkout process. This is projected to grow by 20 percent in 2019 to be worth US$4m2.
- The mobile eCommerce market itself is projected to double in less than four years, with a predicted size of US$10.1bn by 20213. Retailers will need to ensure they have the best possible experience for their customers to take advantage of this growth.
- 2019 is set to be the year that cards overtake cash for in-store sales. Retailers will need to make sure they have card payment technology in place to ensure they don’t lose out sales to their competitors by giving customers a choice in paying how they want.
- Retailers will need to get comfortable with the idea of ‘try before you buy’, rather than just ‘buy now pay later’. What this means is the buyer gets their item straight away, and if they like it, they pay for it within a specified time. If not, they return it at no cost. The benefit for retailers is it reduces shopping cart abandonment rates by eliminating friction at checkout from factors including security checks and unexpected shipping charges.
- Improving the customer experience is going to be a constant theme in 2019. One aspect of this will be ‘invisible payments’. Retailers should look to their payment partners for advice on how to use invisible payments to produce better user experiences, predictable revenue, and loyal customers. Retailers should also look for opportunities to deliver value-added services alongside the frictionless act of payment—such as automatic adds to loyalty schemes.
- Satisfying consumer needs instantly, at scale will continue to be of paramount importance and will likely to be served by emerging technologies like robots and drones. For consumers, delivery by drone can satisfy the immediate gratification for more products faster, and even to remote locations. For retailers, drones could increase efficiency and reduce costs for the ‘last mile’.
Juan D'Antiochia, Worldpay's general manager for Latin America, at Worldpay Inc. said:
“Brazilian eCommerce is set for steady growth in 2019, offering a huge opportunity for merchants. The advancement of eCommerce is a result of a mature and constantly changing market driven by technology, in particular, by mobile devices.”
“Consumers see security, comfort and convenience when using their smartphones to make online purchases. This year, more than ever before, retailers will need to keep an eye on this profile and optimise their mobile channels, otherwise they risk losing sales for not meeting their audience's expectations.”
"It’s important to emphasize that the eCommerce market is dynamic creating possibilities for both the business world and future generation of jobs in the country. We have noted that the diversity in payment methods is a reality among many companies in this industry, but there is still room for improvement in the coming year. Consumers are attentive to the retailers and ready to establish lasting contacts.”
About the 2018 Global Payments Report
The 2018 Global Payments Report offers a snapshot of the current payment landscape across 36 countries globally. Worldpay’s Market Intelligence team compiles the Global Payment Report using a combination of authoritative third-party vendors and other publicly available data. This compiled data was analyzed using Worldpay’s proprietary data model and categorization scheme, with support from McKinsey. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions, informed by our processing of more than 40 billion transactions annually via more than 300 payment types, across 146 countries and 126 currencies.
The projected growth figures contained in this report were sourced from GlobalData and McKinsey and relate to the industry as a whole, not Worldpay’s business. The data was collected using consumer surveys, B2B surveys and input from local research teams. 45,000 consumers were surveyed globally in February and March 2018.
Any indicative predictions based on the data we have used should be treated as such. No representation or warranty, expressed or implied, is made by Worldpay, Inc. and/or any of its affiliates, directors, officers, employees, agents or advisers as to the reliability, accuracy, timeliness or completeness of any information, opinions or analysis contained in this document, which is not intended to be relied upon by you or any person for any purpose whatsoever.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global omni-commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. The company is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B.