US consumers are rapidly adopting mobile and online methods of buying goods and services, with 60 per cent of those aged 18-44 making a mobile purchase in the past 90 days. A report, E-Commerce Forecast 2017, by Javelin Strategy & Research, examines the growth of e-commerce, both mobile and online, and how it is continuing to influence the US retail market. E-commerce sales were more than half-trillion dollars in 2016 ($518 billion) and are forecast to grow to more than $700 billion by 2021.
Some of the other disrupting factors for e-commerce named in the report include the Internet of Things (IoT) and the impact that certain retailers, such as Amazon, will have in the retail marketplace. IoT connected devices will be able to connect directly to e-commerce platforms to make purchases on their owners' behalf, while Amazon is currently experimenting and trialling the use of IoT and contactless and invisible payments for grocery shopping.
Javelin's Michael Moeser said: “Financial institutions (FIs) have a unique opportunity to build consumer trust in e-commerce as a 'remote' shopping channel. For people to allow IoT devices to make purchases on their behalf, FIs can play a bigger role by working with payments networks and IoT providers to offer different payment options.”
Keep up to speed with Payments Update
This is an interesting time for the payments market, with technological developments, from invisible payments and the IoT, to advances in cross-border payments (blockchain, Ripple, SWIFT GPI, the Utility Settlement Coin) and the steady move towards harmonised, faster payments in Europe and the US. Look out for CTMfile's regular Payments Update, which keeps you up to speed with the latest news in the payments space:
- Payments update: Today cash and instant payments are essential; rest less so
- Payments update: SEPA finally delivers, and Sweden is most cashless
- Payments update: we are all in the transaction processing business now
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