Usage of digital payments in Europe is expected to rise by 70% in the next five years, as the global e-commerce landscape becomes worth $6.9trn.
The finding comes from PPRO, a local payment infrastructure developer, which has released the latest version of its Payment Almanac.
Its report explores trends across Europe, Latin America, Asia and North America.
The company claims that Western and Central Europeans pay for 45% of online purchases with a credit or debit card. Other common payment methods include bank transfers and e-wallets, with a 25% and 23% usage, respectively.
In the UK, the e-commerce market is worth $282.2bn but is expected to reach $350bn by 2025. Digital wallets are becoming very popular in the UK, with 32% of consumers using these services.
The US is still a dominating force in e-commerce, with its merchants accounting for 50% of cross-border purchases in Canada, Mexico, South Korea and Brazil.
In Canada, 49% of its cross-border shopping activity comes from the US, with 23% of transactions completed through digital wallets.
Digital wallets have high penetration within the Asia Pacific market, with 60% of consumers using the service – higher than any other region.
Over 70% of payment transactions in China are facilitated by wallets like Alipay and WeChat Pay.
Finally, the most common payment method in LatAm is card-based, with 60% of payments.
PPRO chief commercial officer Claire Gates said, “The reality of today’s e-commerce landscape is that brands are no longer siloed to one country or region, but instead conducting business across multiple borders.
“This boom in cross-border e-commerce and the proliferation of niche local payment methods has intensified the challenge for companies who seek to make transactions simple and secure. The 2021 Payment Almanac not only provides a resource to better recognize consumer trends in each country but showcases how the complexity of payments is increasing. Brands need to understand these regional differences if they want to capture new customers.”
Another research into the payment sector was recently completed by Marqeta. One of its findings was that influencers will play a major role in the adoption of payment methods.
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