Worldpay: eCommerce predictions for China in 2019
China’s eCommerce market continues to lead the way globally – and with the exponential growth of mCommerce, this is set to continue in 2019.
Here are Worldpay’s predictions for China’s eCommerce market in 2019:
- The total eCommerce market is projected to grow by 11 percent in 2019 to be worth US$1,404.1bn, driven by increased smartphone ownership, faster mobile networks and consumers continually looking for a more seamless payment experience.1
- In China, mobile is already the channel of choice for consumers, accounting for 60 percent of online sales. This is forecasted to grow at a rate of 16 percent in 2019 to be worth US$868.8bn.2
- Mobile is the fastest growing channel at 12 percent CAGR, while desktop sales are growing at 4 percent CAGR.3
- In China, online retail, social communication and payments are seamlessly integrated – and consumers are ready for the next generation of frictionless, invisible payments. The rise of “new retail” concepts such as Alibaba’s Hema Supermarkets will continue to influence shopper demands for seamless retail from online to offline.4
- eWallets will continue to grow and dominate China’s eCommerce market as Alipay and WeChat Pay become increasingly popular.5 Currently, 63 percent of eCommerce sales use eWallets. This usage is set to grow at a rate of 13 percent CAGR, and is forecasted to become a whopping 84 percent of the market in 2022 – up 20 percent on 2018.6
- China’s first eCommerce law came into effect on January 1, 2019, bringing further regulation to the market. This will better protect legitimate businesses and facilitate a healthier environment to support faster market growth.7
Philip Shi, Country Manager for China at Worldpay, said: “In 2019, it’s more important than ever for merchants to tailor their mix of payment methods to match the preferences of local shoppers.”
“China is leading the way in a trend we’ve seen across the globe – the rise of mCommerce and alternative payments like eWallets, both in-store and online, as consumers increasingly seek the most frictionless shopping and payment experience. With a preference for alternative payment methods like eWallets, it’s no surprise that consumers in China are eager for more opportunities to enjoy the shopping experiences they love via innovative new channels.”
“Most important is providing a consistent overall retail experience that matches brand attributes, so that consumers can enjoy seamless and secure shopping and payments from desktop and mobile to bricks-and-mortar.”
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.