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Digital commerce transactions soar to US$8 trillion by 2020
In perspective, the GDP of Japan (the world’s 3rd largest economy in terms of nominal GDP) was estimated to be US$4.6TN in 2014.
Three sectors drive growth
The Juniper Research report, Digital Commerce: Key Trends, Sectors & Forecasts 2016-2020, attributes growth in the digital commerce to three major commerce segments – digital banking, remote digital goods and remote physical goods.
“The digital commerce market as a whole is seeing an ever increasing propensity towards an omni-channel approach, and this extends to e-commerce where the mobile and tablet platform is seeing increased use towards the purchasing of physical goods, either for delivery or collection,” said research author, Lauren Foye. “In addition, global online banking users as a proportion of banked individuals are forecast to cross the 50% mark in 2016.”
Cyber sales and celebratory events boost online activity
In 2015 online sales events like Cyber Monday were credited with boosting online platform incomes, with many online retailers turning record profits. For example, Juniper reported China’s ‘Singles’ Day’ event saw the likes of e-commerce giant Alibaba on its own sell CN¥91.3BN (US$14.3BN) in goods.
And during the Chinese New Year period in February, the research also found impressive spikes in P2P traffic by WeChat and Alipay. With WeChat registering more than 3.3 billion P2P ‘red envelope’ transactions during the six days of celebration.
Mobile devices drive online transactions
The supporting whitepaper observed mobile devices would forge a considerable lead over other market sectors for monetary transfers by 2020, but noted differences in use patterns between smartphones and tablets noting, “while tablets and smartphones are both heavily used for browsing, consumes are far more likely to make their purchases on tablets.” This it attributed in part to current differences in user interfaces, with the tablet user interface “more conducive to entering payments details, but also to where purchases occur (most frequently in the home, with send migrating from the desktop to the tablet).”
Other key findings
The value of Mobile NFC POS (Point of Sale) payments will display significant growth, increasing by over 400% between 2016 and 2020.
The total volume of Mobile & Online Money transfer transactions will surpass those seen from remote physical goods by the end of 2016.