Advances in Technology to Drive the Global E-commerce Payment Market Through 2020, Says Technavio

LONDON--()--The global e-commerce payment market is expected grow at a CAGR of over 16% during the forecast period, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global e-commerce payment market for 2016-2020. The market is further categorized into six segments by mode of payment, which comprise of cards, e-wallets, mobile, bank transfer, direct debits, and cash on delivery.

“The e-commerce payment market is gaining prominence worldwide with the rise in the number of smartphone users who have 3G and 4G subscriptions. Top vendors are partnering with banks and non-banking institutions to integrate online and offline channels. The vendors are also focusing on the market dynamics wherein they are trying to provide secure ways of online transaction to enhance customers experience,” says Bharath Kanniappan, a lead automation research expert from Technavio.

Technavio’s research study segments the global e-commerce payment market into the following regions:

  • Americas
  • EMEA
  • APAC

Americas: huge increase in the young and socially active online user population to boost growth

The e-commerce payment market in the Americas is expected to reach USD 1.9 trillion by 2020, growing at a CAGR of over 13%. The e-commerce payment market in the Americas shows the highest growth potential. This is because of the rise in the number of smartphone users, which has brought in significant opportunities for both vendors and customers. There has been a huge increase in the young and socially active online user population in the region. This has expanded e-commerce sales in terms of transaction volumes. In Latin America, of the overall e-commerce transaction, 48% transaction takes place through cards, 14% through bank transfers, 11% through e-wallets, 5% through direct debits, 9% through COD, and 13% through various other modes of payments like cryptocurrency and checks.

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APAC: huge opportunity and scope for growth as cash-intensive economies embrace cashless transactions

The e-commerce payment market in APAC is expected to reach USD 2.3 trillion by 2020, growing at a CAGR of almost 23%. There is a huge opportunity and scope for vendors and customers in APAC. With 45% urbanization in 2015, the active Internet users in this region stood at 1.40 million, and the penetration rate was just 35%. There is a significant opportunity for growth in the market during the forecast period as the penetration rate is likely to increase further.

China has the highest share of the online payment market in this region. The market opportunity stems from the immense market potential that may be unleashed on an account of cash-intensive economies embracing cashless transactions during the forecast period. Technavio also expects a large number of cross-border cash management solutions to enter the market, and this should expand the customer base during the forecast period.

EMEA: formulation and launch of new payment methods to promote easy access

The e-commerce payment market in EMEA is expected to exceed USD 1.4 trillion by 2020, growing at a CAGR of over 12%. The stakeholders are trying to formulate and launch new payment methods so that customers can have easy access to e-commerce services.

The e-commerce payment market in Europe operates in cohesion with European policy makers and the European Banking Authority. The directives framed by the European Authority should promote stronger security measures to bolster Internet payment mechanisms which may help retain and expand the customer base during the forecast period.

Both consumers and online merchants need to be assured of failsafe technologies to guarantee secure and reliable payments. For instance, Ogone, a Belgium-based online payment provider, recently published a case study that describes how the company helped an online retailer, Wiggle, expand its e-commerce business. Wiggle has operations in The Netherlands, Germany, Belgium, and Austria and realizes the inherent complexities in cross-border payments. For instance, the company was expected to offer payment options, which were in line with these countries' culture and online behavior.

Some of the top vendors in the global e-commerce payment market as highlighted in the report are:

  • AliPay
  • MasterCard
  • PayPal
  • Visa

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

The global e-commerce payment market is expected grow at a CAGR of over 16% during the forecast period, according to Technavio’s latest report.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com