BASINGSTOKE, U.K.– The need to get more members to use their credit union cards to make payments is even more apparent in the wake of findings of a new study.
The study, from Juniper Research, has found the value of global eCommerce payment transactions will exceed $7.5 trillion by 2026, up from $4.9 trillion in 2021.
“This growth rate of 55% over the next five years will be driven by retailers offering compelling omnichannel retail experiences that increase user eCommerce spend,” Juniper said. “Omnichannel retail is a model that provides end users with the ability to access retail services, including sales and customer support, via multiple channels.”
The new research, eCommerce Payments: Emerging Trends, Opportunities & Market Forecasts 2022-2026, predicts that these channels, including online, mobile and physical retail locations, will be instrumental for future success, Juniper stated.
User Expectations
“This is because users expect the same services to be available irrespective of the channel,” the firm said in releasing its findings. “Additionally, it found that there are increasing appetites for new payment methods within eCommerce checkouts, including Open Banking-facilitated payments and digital wallet one-click checkout buttons. Accordingly, it recommends that merchants ensure payment options match changing user expectations, or they will be rapidly left behind.”
The research found that by 2026, China will account for over 37% of global eCommerce payments by transaction value, owing to its established and extensive eCommerce and payments landscape that provides greater convenience for users via easily accessible alternative payment methods, according to Juniper.
Additionally, the research recommends prioritizing digital wallets, Open Banking facilitated payments and cryptocurrencies to emulate the eCommerce success experienced in China. To do so, it recommends that platform providers partner with specialists in these specific emerging payment areas to keep pace with changing merchant expectations around acceptance types, Juniper added.
Physical Goods Dominate
Juniper noted the research forecasts that physical goods will account for 82% of the global eCommerce payments transaction value by 2026.
“It urges payment providers to support BNPL, an alternative payment method that integrates fixed instalment plans and flexible credit in eCommerce checkout options, to capitalize on the continuing growth of eCommerce due to the ongoing global COVID-19 pandemic,” according to Juniper.