A new report from Juniper Research suggests that total ecommerce transactions will reach $4.8 trillion by 2024, up from $3.3 trillion in 2020. This growth will be driven by emerging markets, with China having 62% value growth over the next 4 years.
The research identified the Chinese market as a major factor, as well as regions such as Latin America and Africa and the Middle East, which are likely to see huge improvements in connectivity
Payment providers should focus on emerging markets
The research, Strategies for Payment Providers: Industry Trends, Opportunities & Recommendations 2020-2024, urges payment providers to seek new revenue streams in emerging markets to mitigate slow growth in developed markets.
Accelerating financial inclusion via MFS (Mobile Financial Services), QR code payments and carrier billing will be crucial for this. The research found that mobile payments not requiring a linked bank account offer significant possibilities for eCommerce payments in developing markets.
The research also found that mobile handset penetration is rising faster than banking penetration in developing markets, meaning that mobile access is the best way for eRetail and payments providers to reach potential users.
Digital innovation means that players must expand the scope of their services
The continuing rollout of Open Banking is driving digital innovation, which threatens to reduce reliance on debit and credit cards. Added to this, the popularity of mobile wallets is having a disruptive effect, with physical cards becoming less important to the payments market.
Accordingly, the research suggests that card networks must be proactive, by looking beyond the card, becoming involved in Open Banking initiatives and delivering omnichannel experiences for users.
Research author Susannah Hampton explained: “Card networks must leverage their ability to invest in, and forge partnerships with, key players to gain scale in new areas, or they will fail to diversify their revenue streams and will be vulnerable to future disruption.”