The value of global digital payments will increase by 14 per cent in 2017 compared to last year, reaching $3.9 trillion, according to research by Juniper Research.
More than half (55 per cent) of the transaction value is accounted for by online retail purchases for physical goods, but person-to-person (P2P) transfers will see a significant year-on-year net increase in value ($200 million).
The research, summarised in a free white paper – Maximising the digital payments opportunity 2017 – (registration required) found that:
- the US will see particularly strong growth;
- the Zelle payments network is expected to build on its successful debut in 2016 as additional banks come on board;
- demonetization policies in India have encouraged a surge in mobile wallet adoption and, with it, sharp increases in both P2P and mobile retail transactions;
- the US will see further strong growth in e-retail, partly due to an increased emphasis by traditional bricks-and-mortar retailers in developing a converged online/offline approach; and
- the Far East & China will account for the largest share of transaction values over the next five years, due primarily to the recent surge in e-retail engendered by the success of Alibaba in mainland China.
CTMfile take: Online sales will be increasingly important to retail and consumer-facing companies. The research gives the example of Wal-Mart, which currently does less than 5 per cent of sales through online channels but is seeking to boost its market share through the development of an ‘innovation hub’ to drive retail opportunities.
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