2018 Global Payments Report: 7 eCommerce takeaways
Today’s payments landscape reveals a kaleidoscope of diversity, meticulously documented by our global team of payments experts. We look beyond the numbers to explore the art and science of payments with essays on compelling payment trends.
Here are seven key takeaways from the report for eCommerce businesses:
1. Alternative payments are now the mainstream
Payment methods other than credit and debit cards are generally considered "alternative". Yet hundreds of "alternative" methods are redefining the mainstream. Mobile order and pay apps from quick-serve restaurants are tremendously popular in the US, while in Asia, eWallets account for more than half (53%) of eCommerce spend.
2. Enable mobile wallets for seamless online checkout
Consumers enjoy secure frictionless checkout experiences. Today eWallets are delivering on that experience. Accounting for 36% of global eCom spend, accepting a broad range of eWallets is essential.
3. The growing importance of bank transfers
Bank transfers are growing in popularity. Consumer convenience, a lower cost of acceptance, and regulatory changes like PSD2 make bank transfers a payment method on the rise.
4. The accelerating power of now
"Buy now, pay later" and "try before you buy" services like Klarna and AfterPay are helping retailers reduce friction at checkout by allowing consumers to defer payment. See how this new twist on consumer credit is gaining steam.
5. Cross-border eCommerce demands local knowledge
Payment methods evolve based on local economic and cultural conditions. That makes entering new markets difficult. A payment partner with local knowledge and global scope helps bridge those gaps.
6. Changes at the top of the world’s largest markets
China has become the world’s largest consumer market, a position we project it will continue to occupy through 2022. China is followed by the US and UK across both POS and eCom. In terms of growth rate we see Nigeria, Colombia, and India enjoying 20%+ growth rates for eCommerce, with Argentina, China and South Korea expected to see the biggest gains at the point of sale.
7. China: the eCommerce giant
The sheer size of China’s eCommerce market is remarkable: $1.26 trillion in 2018. Growth rates are slowing down somewhat—to 9% through 2022—yet that "lower" trajectory will see the Chinese eCommerce surpass $1.7 trillion in five years. China’s market largely leapfrogged the desktop stage resulting in mobile accounting for more than half of eCom, a lead that’s only expected to grow.
Are you ready to expand your eCommerce business into new markets? Discover how shoppers around the world are engaging with merchants at the most important part of their journey—the payment. We explore the landscape across 36 countries to help you dial-in your global payments strategy.