Consumers will spend more than US$3.3 trillion this year on remote payments for digital and physical goods, a new study from Juniper Research shows.
This is 10 per cent more than last year’s total of $3 trillion.
Alternative payment mechanisms will make up an ever-increasing proportion of online spend, according to Jupiter’s report Mobile and Online Remote Payments for Digital and Physical Goods: Opportunities and Forecasts 2018-2022.
It argues that PayPal already accounts for 20 per cent of mobile and online purchases made outside China, while the success of Alipay and Weixin Pay within China means these two players combined now account for 45 per cent of global payment volumes.
Jupiter’s research also claims that retailers are struggling to resolve issues around customer identification within the broader commerce framework. As research author Dr Windsor Holden says, “Payment processors and other key stakeholders need to work closely with merchants to ensure they can recognise individual consumers, regardless of device and whether they are buying online or offline, to deliver an optimal experience.”
Not only should merchants localise supported payment mechanisms, but also the entire payment flow, says Jupiter. It recommends they work with payment processors to test optimal flows for target markets.