HAMPSHIRE, U.K.–Mobile commerce (mCommerce) payments will hit $3.1-trillion in 2025, up from $2.1-trillion in 2020, according to a new study from Juniper Research.
The research found the COVID-19 pandemic’s massive boost to digital wallet services in the offline arena with OEM Pay has been a key driver of greater mCommerce usage, having accelerated the already rapid transition from offline to online services.
The new research, eCommerce Payments: Emerging Trends, Opportunities & Market Forecasts 2020-2025, found the two single largest eCommerce markets, China and the US, will see volume growth in smartphone payments for remote goods of 55% and 74%. respectively, between 2020 and 2025.
In China, eWallet payments are well established, with eCommerce continuing to grow, as availability and prosperity rise. In the US, OEM Pay wallets and PayPal will be the major beneficiaries of a permanent pandemic-driven shift to online shopping, Juniper Research reported.
The research recommends that payment processors prioritize wallet acceptance.
New Payment Models
Juniper Research said it further anticipates “this uptick in mCommerce will translate into rapid growth of new payment models, such as BNPL (Buy Now, Pay Later). Deploying BNPL via APIs in checkout processes will mean a significant shift away from traditional fee- and APR-based credit card models of consumer financing for online purchases, particularly amongst Millennials less convinced of the benefits of credit card ownership,” Juniper Research stated.
The company added BNPL also offers significant advantages to merchants as a way to increase average basket size, while boosting the user experience for shoppers.
“It is critical for payment processors to prioritize building technological ecosystems to allow the acceptance of BNPL across all payment methods, or they will be left behind by more digitally-adept providers,” said research author Susannah Hampton.