The global e-commerce market is projected to grow more than 50 per cent through 2025 to reach over $8 trillion in transaction value, according to a new report released today from financial technology leader FIS. Moreover, Buy now, pay later (BNPL) is projected to be the world’s fastest-growing payment method both online and in-store through 2025.

The 2022 Global Payments Report by Worldpay from FIS has examined current and future payments trends across 40 countries in 5 regions. The report found the shift to online continued in 2021 with 13.9 per cent growth in global e-commerce, while the 13.4 per cent growth in point-of-sale (POS) transaction value reflects the steady recovery from the impacts of the COVID-19 pandemic.

The report found that global consumers continue to embrace BNPL, and by 2025 it is projected to account for approximately 5.3 per cent ($438 billion) of global e-commerce transaction value, increasing its share from 2.9 per cent ($157 billion) in 2021.

“Even as more customers return to the store, it is clear that there is no going back on the innovations we are seeing within fintech,” said Jim Johnson, head of merchant solutions at FIS. “Consumers are now mirroring the way they shop online while they are at their favorite retailer – creating a more advanced blend of digital and physical payment options than we saw prior to the pandemic. The implications of this are significant for merchants, who now need to innovate and partner with a technology provider who can help them meet the diverse needs of modern-day consumers.”

BNPL is projected to be the fastest-growing e-commerce payment in Argentina, Belgium, Brazil, Canada, Chile, France, Hong Kong, India, New Zealand, Singapore, the UK and the US. BNPL accounted for 8.1 per cent of Europe’s regional e-commerce transaction value in 2021, more than twice the share of North America’s 3.8 per cent. In 2021, global e-commerce spending exceeded $5.3 trillion in transaction value and is projected to surpass $8.3 trillion by 2025.

Digital wallets accounted for nearly half (48.6 per cent) of global e-commerce transaction value in 2021, with the report projecting they are projected to represent 52.5 per cent of e-commerce value in 2025. The use of traditional payment methods such as cards and cash-on-delivery continue to lose share and combined are projected to account for less than a third of global e-commerce transaction value by 2025.

Fibre2Fashion News Desk (RR)

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