The rise of ecommerce platforms could be set to continue for some time, new research has predicted.
A Juniper Research study estimates many platforms are well set to continue to expand their digital assets as more and more companies move their transactions online.
According to the analysis, global digital commerce transactions are set to exceed $20 trillion by 2027 – a figure not too dissimilar to the entire GDP of the United States, the world’s largest economy. In 2022, the figure is estimated to be around $12.3 trillion (roughly the equivalent of China’s GDP which comes in at second place), representing a 62% increase in five years.
Ecommerce: digital payments and BNPL
The figures include online money transfers, purchases, banking, and bill payments. The research firm cites NFC payments as one major contributor to the sector’s growth, which enable speedy and effortless payments at physical locations.
In fact, the research indicates that NFC payments are set for the largest growth when it comes to digital commerce, with an estimated 176% increase in the next five years.
NFC is the technology behind Apple Pay and Google Pay, which when combined with biometric security like fingerprint or facial recognition, help reduce the likelihood of fraud.
When it comes to online shopping (a habit that we quickly adopted during the pandemic), Juniper Research has suggested two changes. Firstly, improvements in supply chain and order fulfillment operations should drive significant growth for this sector. But secondly, for ecommerce platforms to keep up, the study says that sellers should improve delivery times and offer a broader spectrum of payment methods, including ‘buy now, pay later’.
Apple has already launched its own Pay Later scheme, which it will provide internally rather than partnering with a third-party bank, with PayPal following quickly in its wake with its own scheme.
Similarly, Square has introduced its own pay later scheme, which will see it partnering with Clearpay, as the industry continues to adapt to new, digital buying trends.