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Mobile and e-commerce set for huge growth by 2020

Mobile and e-commerce payments in the US and China are set to see phenomenal growth by 2020, according to two recently released sets of figures. Mobile retail payments in the US totalled $180 billion in 2016 and are expected to reach $410.5 billion by 2020, according to a report by Javelin Strategy & Research.

The report – Mobile Payments Convergence: Opportunities at the Intersection of In-person, Online and P2P Payments – used data on consumers who paid with their mobiles both online and in shops. A quarter of the Americans surveyed said they had used a mobile wallet in the past 30 days – a figure that has doubled since 2014.

The Chinese market for e-commerce is also growing and is already bigger than the market for mobile payments in the US. Figures published by China's Ministry of Commerce forecast that the e-commerce industry will grow to CNY40 trillion ($5.8 trillion) by 2020.

The main factors driving growth of mobile payments are lower costs, fast transactions, high consumer reach, ease of payment and rising smartphone penetration levels. Asia is the biggest market for mobile payments, with North America second and Europe third.

CTMfile take: Both the figures given by the Chinese Ministry of Commerce and the Javelin Strategy report, while not directly comparable, confirm the huge increase in mobile and e-commerce payments in the next four years.

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