Digital commerce spending will continue growing this year, according to the latest study from Juniper Research, which believes consumer behavior will become increasingly digitally led, rather than reverting to pre-pandemic norms.
Spending will rise 11.5 percent to over $11.6 trillion this year, from $10.5 trillion in 2020, including money transfers, digital goods purchases, physical goods purchases, digital ticketing purchases, banking bill payments, NFC mobile retail payments, and QR code retail payments.
In addition, retail e-commerce sales worldwide amounted to $4.28 trillion in 2021 and e-retail revenues are projected to grow to $5.4 trillion in 2022, according to Statista.
The research, Digital Commerce: Key Trends, Sectors and Market Forecasts 2021-2025, found that the success of digital solutions during the pandemic means that consumer behavior will become increasingly digitally led, rather than reverting to pre-pandemic norms.
E-commerce has become an indispensable part of the global retail framework during the last few years and with that in mind, the retail landscape has undergone a significant transformation following the advent of the internet, like many other industries.
Some of the benefits regarding the ongoing digitalization of modern life, are that consumers from virtually every country profit from the perks of online transactions. As internet access and adoption are rapidly increasing worldwide, the number of digital commerce keeps climbing every year.
In 2020, over two billion people purchased goods or services online, and during the same year, e-retail sales surpassed $4.2 trillion worldwide.
As such, mobile commerce will account for 73 percent of all digital commerce transactions by value in 2021; according to the research, rising to 79 percent by 2025.
“Mobile has emerged as the most important way to access services, and although online will remain relevant for higher-value transactions, user experiences must be mobile first,” it noted.
“Mobile apps are the dominant force in digital commerce, with user experience becoming critical, as products become heavily commoditized. Merchants must leverage AI-based analytics to ensure a truly personalized mobile commerce experience, or they will lose out to more digitally adept merchants,” research author Nick Maynard explained.
The research also found that remote physical goods purchases will account for the single largest transaction value of any segment in 2021 at 22 percent of the total, followed by money transfer and QR code payments.
The research identified however that contactless mobile payments will have the highest rate of growth; increasing over 242 percent in value between 2021 and 2025, as OEM Pay services add spending insights and other value-added services to consolidate gains made during the pandemic.