Research outfit Juniper Research predicts the global digital commerce transactions market will swell to over eight trillion US dollars by the end of the decade.
That’s up from just under $US5 trillion last year.
According to the study, called “Digital Commerce: Key Trends, Sectors & Forecasts 2016-2020”, signficiant growth in transaction values will be driven by the the contributions from three major commerce segments: Digital Banking, Remote Digital Goods, and Remote Physical Goods.
According to the study’s author, Lauren Foye, “The digital commerce market as a whole is seeing an ever increasing propensity towards an omni-channel approach, and this extends to eCommerce where the mobile and tablet platform is seeing increased use towards the purchasing of physical goods, either for delivery or collection. In addition, global online banking users as a proportion of banked individuals are forecast to cross the 50 per cent mark in 2016.”
Among the other key findings:
- The value of Mobile NFC POS (Point of Sale) payments will display significant growth, increasing by over 400 per cent between 2016 and 2020;
- The total volume of Mobile & Online Money transfer transactions will surpass those seen from remote physical goods by the end of 2016.
The report suggests that online retail events such as Cyber Monday have been credited with boosting online platform incomes. Last year is a case in point, they say, with many retailers turning record profits. “China’s own Black Friday event known as ‘Singles’ Day’ reportedly saw eCommerce giant Alibaba sell 91.2 billion yuan ($US14.3 billion) in goods. The research also observed that digital transaction volumes would be further bolstered with the continued transition to digital formats, and the rise in streamed subscription services.”
One buck at a time
According to Juniper, “In terms of the volume of individual transactions, the use of mobile devices to make monetary transfers, such as international remittances, is expected to have a considerable lead over other market sectors by 2020.”
The authors reveal that in China, both WeChat and Alipay saw astonishing spikes in P2P (Person to Person) traffic during February 2015. “WeChat registered more than 3.3 billion P2P ‘red envelope’ transactions in just six days over the Chinese New Year period.”