Skip to main content

China will Continue to Lead Global eRetail Payments

By the end of 2019, eCommerce will have a significant role to play in economic growth, with 44 percent of the global population forecast to purchase physical goods and 27 percent purchasing digital goods.

Moving deeper in the digital era, retailers are now focused on customer retention and reduced costs through the application of new technologies -- such as artificial intelligence (AI), blockchain, internet of things (IoT) and machine-to-machine communications (M2M), among others.

The growth of eRetail transactions has been so significant over the last decade that online payments for physical goods purchases exceeded the $2 trillion mark for the first time in 2017.

Two years later, the market size has grown to $2.9 trillion spent online for the purchase of physical goods worldwide in 2019; reaching a compound annual growth rate (CAGR) of 9.8 percent.

Payment Platforms Market Development

According to the latest worldwide market study by Juniper Research, revenue from payment platforms that enables merchants to process payments will grow from $106 billion in 2019 to $158 billion by 2024.

Juniper now forecasts that over half of global revenue will be generated in China by 2024 -- primarily owing to its increasing consumer affluence, and vast usage of Chinese social payments platforms such as WeChat Pay.

However, Juniper also forecasts losses from payment fraud will grow by 70 percent over the next five years. Their analyst urges payment platform providers to leverage the efficiency of emerging technologies to fight this increasingly sophisticated threat.


The research recommends payment platform providers invest immediately to diversify their solutions. As a result, they must offer services such as store management solutions, customer insights and merchant capital finance in order to remain competitive.

"The market will move beyond solely offering payments in the near future by expanding to new services," said Dr Morgane Kimmich, research analyst at Juniper Research. "These value-added services will enable payment platforms to differentiate themselves in a saturated market and build out new business models to allow vendors to generate additional revenue."

The global research study assessed 16 payment gateway platforms; scoring them on their service capabilities, breadth of offerings and future market prospects. Juniper Research positioned the five leading vendors as: Fiserv, PayPal, FIS, CyberSource and Adyen.

Outlook for Payment Applications Leadership

The research scored Fiserv highly for its acquisition of First Data, which enabled it to create an end-to-end solution in the payments space and a wide range of payments -- such as the Clover point-of-sale (POS) system.

Fiserv and FIS have both significantly increased their customer reach and breadth of solutions through recent mega-mergers. This has allowed both companies to further assert their strong positions in the payment gateway marketplace.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul