China leads the global evolution to mCommerceNew Worldpay data finds mobile commerce becomes the next lucrative market for global merchants
November 20, 2018
BEIJING, November 20, 2018 - China is leading the global evolution to eCommerce and, in the next four years, it will continue to remain the largest eCommerce market in the world. China will also take a great leap towards mobile commerce by 2022, a global trend many other markets are following. These are some findings from the new report by Worldpay, Inc. (NYSE: WP; LSE: WPY), a global leader in payments.
In the new report, Worldpay finds that, the largest eCommerce markets in next four years, by size, will be China (US$1.78tn), U.S. (US$1.15tn) and the UK (US$0.314tn). Chinese merchants wishing to expand internationally should consider entering those eCommerce markets with the fastest annual compound growth rates, such as India (21 percent), Malaysia (21 percent), Turkey (19 percent) or the Philippines (19 percent).
An unstoppable and exciting trend across the globe, is that mobile commerce is expected to boom. By 2022, the largest three mCommerce markets in the world are forecast also to be China (US$1.18tn), U.S. (US$0.36tn), and the UK (US$0.115tn). In China, mobile is now the fastest growing channel, predicted to see a compound annual growth rate of 12 percent over the next four years. In comparison, desktop shopping in China will grow at just four percent per annum over the same period.
This strong mobile momentum in the China market is definitely not alone. Over the next four years, mobile commerce is on track to overtake desktop sales for consumers in Australia, Hong Kong, India, Mexico and Singapore, strong proof that mobile commerce is the next lucrative channel for global merchants.
Philip Shi, Country Manager for China at Worldpay, said: “Merchants can feel optimistic about a growing eCommerce market both in China and globally in the years to come. China’s growth is a boundless opportunity and the percentage of payments made via eWallets is staggering. Even the most mature online economies pale in comparison. While on a global scale, mobile commerce has become the new battlefield for merchants to compete for sales opportunities.”
Philip Shi added, “From new forms of credit allowing consumers to “buy-now-pay-later”, to paying more for same-day delivery, and purchasing within “super apps” – the very technological transformations that have made global communication possible, endemic, and constant, are now shaping consumers’ appetite for instant commerce. While there’s no one-size-fits-all approach, China is leading a trend we’re observing across the globe – the rise of mCommerce and alterative payments like eWallets, both in-store and online. Now it is more important than ever for merchants to tailor payment methods to match local preferences, and provide a consistent retail experience that is seamless and secure across mobile, desktop and in-store.”
Worldpay has published guidance to help merchants capitalise on emerging mCommerce and cashless opportunities:
- Consider developing a branded app. We know that 80 percent of Chinese shoppers prefer apps over mobile browsers when shopping on their smartphone, and many say they won’t buy from a business that doesn’t have an app. It’s no longer enough to just have a mobile-optimized website – if you’re not prioritizing a transactional app for your brand, you’re not putting your best foot forward.
- Make it easy and use biometrics to speed up the journey. Shoppers are becoming increasingly familiar with the concept of fingerprint scanning and facial recognition via mobile devices, so they do not shy away from using these methods as a form of authentication. Biometrics place payments at the back of the user’s mind, giving them a faster and friction-free experience, making the payment seem ‘invisible’.
- Identify the most popular payment methods in each territory in which you operate. There are huge differences in payment preferences across the world and within Asia, and alternative payment methods like eWallets are gaining share over traditional credit and debit cards. There’s no one-size-fits-all in any region so you’ll need to understand the best options for your company.
To learn more about these key insights and trends in global payments, visit https://worldpay.globalpaymentsreport.com/
About the 2018 Global Payments Report
The projected growth figures contained in this report were sourced from GlobalData and McKinsey and relate to the industry as a whole, not Worldpay’s business. The data was collected using consumer surveys, B2B surveys and input from local research teams. 45,000 consumers were surveyed globally in February and March 2018.
Any indicative predictions based on the data we have used should be treated as such. No representation or warranty, expressed or implied, is made by Worldpay, Inc. and/or any of its affiliates, directors, officers, employees, agents or advisers as to the reliability, accuracy, timeliness or completeness of any information, opinions or analysis contained in this document, which is not intended to be relied upon by you or any person for any purpose whatsoever.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global omni-commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. The company is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B. Visit us at www.worldpay.com.