Singapore – The global value of e-commerce transactions will soar to US$11.4t, indicating a significant increase from US$7t in 2024, according to the latest report from market research firm Juniper Research.
This projected 63% growth will be driven by the increasing adoption of e-commerce across emerging markets, with alternative payment methods like digital wallets and account-to-account payments further enabling consumers in non-card-centric markets to purchase online for the first time.
Data from the report also foresees that 360 billion e-commerce transactions will be conducted using alternative payment methods by 2029, accounting for 69% of global e-commerce transactions. This shift is expected to be strengthened by increased investments in delivery ecosystems, improving delivery viability, and increasing the overall value proposition of eCommerce.
Moreover, it also suggests that as payment service providers expand their range of alternative payment modes, providing the right payment options at checkout will be essential for optimising customer conversion rates.
According to the report, this will be achieved if payment service providers enhance customer satisfaction by customising payment choices based on the location and demographic of each consumer. Partnering with local payment providers who have deep insights into regional preferences and can support localised payment methods will also help them maximise these conversion rates.
Lorien Carter, research analyst at Juniper Research, remarked, “Alternative payment options have grown substantially, with APM transaction volumes leapfrogging cards in emerging markets. As merchants look to attract new users and geographies, they must consider offering APMs as a key strategy to accomplish this.”
