E-commerce payment: Key market research findings
- The market is driven by the increasing popularity of m-commerce
- The Americas dominate the market geographically
- Key vendors—Visa, MasterCard, AliPay, and PayPal
Technavio’s market research analysts predict the global e-commerce payment market to grow at a CAGR of more than 16% between 2016 and 2020. The rise of m-commerce is the fundamental driving force behind the growth of this market. Mobile payment options give customers the freedom to shop even while on the move. Even brick-and-mortar retailers are offering mobile payment options to enhance their customers’ shopping experience. At present, the Americas dominate the global e-commerce payment market with a market value of over $990 billion. The market in this region is likely to witness substantial growth in the coming years the rise in the number of smartphone users and young and socially active online user population in the area.
The new market research report from Technavio presents a breakdown and analysis of the global e-commerce payment segments by payment mode.
“Continued innovation is an ongoing trend in the e-commerce payment market globally. Top vendors in the market are constantly updating existing services and technology to attract new customers. The customers’ demand for a better retail and e-commerce experience are escalating rapidly owing to the advances and innovations in the mobile and Internet technologies. During the forecast period, retailers may enact changes in their POS systems and processes to extend value-added services. Many banks, mobile operators, card issuers, app developers, and retail chains, are competing heavily to strengthen their position in the competitive market,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research.
In 2015, the cards segment dominated the global e-commerce payment market by accounting for a market share of around 43%. This segment of the market is flourishing owing to the inclusion of loyalty cards and prepaid instruments to payments in the e-commerce market. Vendors are currently making use of the network and infrastructure to generate higher revenue by charging lesser transaction processing fee. The introduction of tokenization such as by top card vendors such as Visa and MasterCard to replace sensitive account information is likely to boost the growth of this segment by 2020.
The key vendors in the global e-commerce payment market include Visa, MasterCard, AliPay, and PayPal. The always-connected mobile customer is rapidly changing the face of the Internet commerce across all primary sectors. Vendors help clients to maximize the opportunities by supporting different smartphone brands to deliver mobile engagement strategies. This has led to a progressive increase in the number of cellphone Internet users worldwide. Also, vendors are trying to provide a range of innovative payment, loyalty, and insight services from mobile loyalty to digital wallets that will further hike the number of Internet users. This is anticipated to increase the e-commerce payment volumes during the forecast period.
A more detailed analysis is available in the Technavio report, Global E-commerce Payment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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