Global m-commerce to eclipse desktop sales by 2023Asia-Pacific leading the m-commerce revolution
November 12, 2018
LONDON, November 12, 2018 -Mobile is about to surpass desktop as the global path to eCommerce, according to new data from Worldpay Inc. (NSE: WP; LSE: WPY), a global leader in the payments technology industry.
Worldpay’s analysis found that global m-commerce will grow at a rate of 19 percent CAGR over the next five years, to be worth US$2.29tn by 2022. Mobile’s share of eCommerce is also set to increase by 11 percentage points between now and 2022, at which point it will account for nearly half (49 percent) of online sales. Worldpay predicts that 2023 will be the tipping point for global m-commerce, with mobile overtaking desktop sales for the first time.
Asia Pacific is leading the m-commerce charge, according to Worldpay’s annual Global Payments Report, ahead of Latin America, Europe and the U.S. Mobile is already the channel of choice for consumers in South Korea and China, driven by increased smartphone ownership and faster mobile networks. According to the research, m-commerce is set to surpass desktop sales in Hong Kong, Singapore, Australia and India as early as 2020, as consumers increasingly turn to their smartphones to shop on the go.
The rapid adoption of e-wallets has been a major factor fuelling global m-Commerce growth. In China – the world’s largest eCommerce market, currently worth US$1.26tn – digital wallets such as Alipay, and WeChat Pay already account for 65 percent of the market. The rest of the world is now starting to follow this trend, as consumers increasingly crave the ease and simplicity of a one-touch checkout process. Growing at a rate of 17 percent CAGR (2018-2022), e-wallets will account for nearly 48 percent of all online payments by 2022, outstripping credit cards (16.6 percent), bank transfers (11.1 percent) and debit cards (10.6 percent).
Worldpay’s report also examined the physical point-of-sale (POS) landscape, which found that e-wallets are also the fastest growing payment method in-store. Forecast to grow by an average of 23 percent annually, e-wallets are set to make up 28 percent of the global POS market by 2022 as consumers become increasingly comfortable with using their smartphones to tap-and-go. By comparison, cash is in steep decline; in five years, cash will account for just 17 percent of physical sales.
Ron Kalifa, executive director at Worldpay, Inc., said: “China has long been the pioneer of mobile commerce, light-years ahead of even the most mature online economies. But as an entire generation of mobile-first shoppers comes of age, we are rapidly approaching the global tipping point for m-Commerce. The latest innovations in device hardware, from voice recognition to facial scanning, are helping make payments more seamless and secure than ever before, prompting consumers to ditch desktop in favour of their smartphone or tablet.
“It is estimated that more people will have smartphones than bank accounts by 20211 , and this shift will have huge implications for businesses around the world. The message for merchants is clear: taking the time to understand the nuances of each market is paramount to success. Brands that can deliver an outstanding mobile experience both online and in-store have much to gain, including fewer abandoned baskets, more app downloads, and increased sales of more valuable goods and services.”
Worldpay has published guidelines to help merchants capitalize on the global m-Commerce opportunity:
- Consider developing a branded app. We know that 71 percent of 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 app2. It’s no longer enough to just have a mobile-optimised website – if you’re not prioritising 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, 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 consumer preferences across the world, and alternative payment methods 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, please 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.
1CCS forecast: https://www.cbronline.com/mobility/smartphones/smartphones-humans-2021-according-report/
2 Worldpay Mobile Payment Journey 2018