Juniper Research, a leading authority in payment studies, has projected a rapid expansion of the eCommerce market, expecting it to reach an astounding $8trn by 2027.
The Hampshire-based firm’s recent study underscores the fact that this growth is not only fuelled by increased usage in developed markets but also by significant adoption in emerging markets.
The current $5.3trn eCommerce market’s growth continues to outpace brick-and-mortar retail, opening up a wealth of opportunities for vendors as emerging payment systems facilitate broader access to the eCommerce landscape.
The study further emphasises the critical role of eCommerce payment systems. These systems, geared towards streamlining online electronic payments, are instrumental in the success of eCommerce businesses.
As the variety of payment options available to consumers proliferates, it is incumbent upon eCommerce vendors to provide the most appealing payment methods to their customers. The increasing ubiquity of options such as BNPL (Buy Now Pay Later) calls for merchants to strategically select payment methods that best bolster their business objectives, thereby driving up average order values.
Juniper Research’s Cara Malone said, “eCommerce providers must understand their customer bases to a greater extent; offering the payment options customers want and removing undesirable options. In practice, this means working with eCommerce payment platforms that do not only understand and support the most common payment types in each country, but also recognise how these vary by vertical & target demographic. Understanding this can substantially improve the payments experience.”
In an increasingly competitive and commoditised market, the report also urges eCommerce payment vendors to differentiate their offerings.
It suggests providing dashboards and data visualisations to smaller SME customers who currently lack access to quality customer analytics. Such additional services could offer valuable insights into consumer purchasing behaviours, payment method popularity, and fraud, further enhancing their value proposition in the market.
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