2020 Global Payments Report: Five eCommerce takeaways
March 16, 2020
Are you looking to expand into high growth countries? Have you started thinking about how to connect to the next generation of consumers? Commerce connects us. The ways we pay tell an evolving story of connections and what we value as people. The intersection of how people pay form pathways— pathways that can help ground us in where we’ve been, where we are, and where we’re going.
The 2020 Worldpay from FIS’ Global Payments Report helps businesses navigate the payment pathways that connect us all. Our research starts at global and regional levels before diving into detailed analysis of payments in 40 select countries, from Argentina to Vietnam. We then look beyond the numbers with key insights on compelling trends from our team of payment experts. We’ll also help you understand how you can apply these insights to your business.
If you’re ready to explore the trends driving big changes in commerce, you’ll want to dive in. Here’s a few key takeaways from this year’s report.
Southeast Asia is experiencing a growth wave
eCommerce continues to surge in developing markets throughout Southeast Asia. A swelling middle class, regulatory reforms, and advancements in digital infrastructure are propelling growth in the region: Indonesia, Malaysia, The Philippines, and Vietnam all rank in the top ten globally with mid-double digit CAGR projected through 2023.
Online sales are a global trend
The potential of global eCommerce is being seen in diverse economies everywhere. Our report projects eCommerce growth surging through 2023 in economies as varied as Argentina (15%), Nigeria (20%), Turkey (15%), and South Africa (17%). From Chile to China to the UAE, extended forecasts for strong double-digit growth present enticing cross-border opportunities for eCommerce retailers.
mCommerce is definitely mainstream
Desktop’s supremacy as the preferred consumer portal to eCommerce is coming to an end. Mobile eCommerce (or mCommerce) evolved from the tip of innovation’s spear to the heart of the mainstream in just a decade. In fifteen of the forty countries in our report, over half of eCommerce spend takes place on a mobile device, focused in Asia with South Korea and China leading the way.
Digital commerce is a global trend, but payment methods are local
Growing consumer acceptance of digital wallets is a primary driver in the growth of mobile commerce, but the specific payment methods and digital wallets vary widely by country. Digital wallets in China, led by Alipay and WeChat Pay, now account for 71% of eCommerce, far and away the global leader in digital wallet use. In Argentina, a popular option is Mercado Pago. French and US consumers like PayPal and Amazon Pay while UK consumers lean towards Apple Pay and PayPal. We project that globally eCommerce shoppers will use digital wallets more than all other payment methods combined (52.2%) by 2023.
Alternative payment methods go beyond just digital wallets
While we project that digital and mobile wallets will be the leading payment method globally by 2023, there are a variety of alternative payment methods. Bank transfer, buy now pay later, PostPay, and PrePay are also popular alternatives in a number of regions.
Expanding into new eCommerce markets starts with understanding how best to connect with your potential customers. Discover how shoppers around the world engage with eCommerce merchants at the most critical intersection—the payment.
Download the 2020 Global Payments Report to learn more about the trends driving change in commerce.