The previously untouched markets by e-commerce will play a significant role in growth as those are emerging markets now
Transaction values for physical goods online to surpass $4T in 5 years. Source: pixabay.com
According to Juniper Research, the transaction values for physical goods online is estimated to grow from $3.3 trillion in 2020 to $4.4 trillion in 2025, a span of 5 years. This 33% increased growth in the transaction values is also predicted to be accelerated by the coronavirus global pandemic.
COVID-19 has played a very vital role in changing customers’ behavior and trust in e-commerce globally, which are thought to last long in the future. The pandemic has led to the increased availability of e-commerce in previously untouched markets, which will further drive the future growth in global online purchase values.
These emerging markets include the Indian Subcontinent and Latin America which are expected to have a very rapid growth of physical goods transaction values during the 5-year span with a prediction of growth of 116% and 82% respectively. This highlights the immediate necessity of cross-border payment transaction options and their pain points.
The analyst of the study suggested that merchants should address local regulatory requirements of that specific region and enable payment methods that the customer prefers, else they will fail to profit on the top growing e-commerce markets and opportunities.
The research also predicted that OEM pay, a smartphone manufacturer-backed wallet payment methods, will be an increasing cause of disruption of well-established e-commerce payment methods by offering customer-friendly options so payment providers should focus on maximizing OEM pay integration.
We’ve reported that almost 60% of Americans will spend less this holiday season, and this is not solely due to the economy.
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