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.
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.