Half of global e-commerce use digital wallets: research

Smartphones are becoming the new wallet for many consumers

digital wallet

Half of global e-commerce use digital wallets: research. Source: shutterstock.com

Worldpay from FIS 2020 Global Payments Report revealed that digital wallets are expected to represent half of the global e-commerce sales by 2023. At the same time, “Buy Now, Pay Later” (BNPL) methods will emerge as the fastest-growing online payment preference over the next 5 years.

The study found that although global e-commerce keeps growing to an estimated $5.9 trillion by 2023, the marketplace is changing as digital wallets transform consumer behaviors online.

The urbanization of emerging economies, widescale technological adoption, and spending power of Generation Z consumers are driving the change, according to the report.

In 2019, 22% of in-store purchases worldwide were carried out using mobile or digital wallets, compared to 16% in 2018. Market forecasters believe that more than 1 billion shoppers will make a digital or mobile wallet payment in 2020.

Mobile commerce is set to make up half of all global eCommerce spending in five years because the reach and scale of the technology means you can shop and buy anywhere. If a merchant’s payment strategy doesn’t consider mobile-first payment methods like digital wallets and ‘Buy Now, Pay Later’ options, they are going to lose market share to their competitors
Shane Happach, EVP, head of global eCommerce, Worldpay Merchant Solutions, FIS

The FIS report unveiled that BNPL is the fastest-growing online payment method in Australia, Brazil, France, Japan, the Netherlands, the UK, and the US. It is set to increase at a 28% compound annual growth rate globally over 5 years. As to Europe, the Middle East, and Africa regions, BNPL usage is expected to grow to 8.9% by 2023.

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