Merchants who fail to ensure payment options match changing user expectations, will be rapidly left behind.
So warns a new study just published by Juniper Research, revealing that customers have increasing appetites for new payment methods within eCommerce checkouts, including Open Banking-facilitated payments and digital wallet one-click checkout buttons.
The study also showed that the value of global eCommerce payment transactions will exceed $7.5 trillion by 2026, a 55% increase from the $4.9 trillion recorded last year.
The main driver of this expected growth is retailers offering compelling omnichannel retail experiences that increase user eCommerce spend. Omnichannel retail is a model that provides end users with the ability to access retail services, including sales and customer support, via multiple channels.
The study predicts that these channels, including online, mobile and physical retail locations, will be instrumental for future success. This is because users expect the same services to be available irrespective of the channel.
The study also highlighted the position of China within the market. It accounts for over 37% of global eCommerce payments by transaction value. This is due to its established and extensive eCommerce, and payments landscape, that provides greater convenience for users via easily accessible alternative payment methods.
Additionally, the research recommends prioritising digital wallets, Open Banking facilitated payments and cryptocurrencies to emulate the eCommerce success experienced in China. To do so, it recommends that platform providers partner with specialists in these specific emerging payment areas to keep pace with changing merchant expectations around acceptance types.
The research forecasts that physical goods will account for 82% of the global eCommerce payments transaction value by 2026. It urges payment providers to support BNPL, an alternative payment method that integrates fixed instalment plans and flexible credit in eCommerce checkout options, to capitalise on the continuing growth of eCommerce due to the ongoing global COVID-19 pandemic.