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Digital Commerce Investment will Exceed $11.6 Trillion

Across the globe, digital commerce transaction growth has pushed past the prior boundaries. As an example, the COVID-19 pandemic has fueled a widespread increase in contactless payment limits around the world. There are several important examples of this phenomenon in action.

In April 2020, the UK increased its contactless payment limit from £30 ($41.73) to £45 ($62.60). The UK government then announced plans to increase the limit again, to £100 ($139.11), which took effect in March 2021, but will require a transition period throughout the year.

In March 2020, Germany agreed to increase its contactless payments limit from €25 ($30.14) to €50 ($60.29), which was a major move for a country that had previously been slow to adopt contactless payment services.

Furthermore, in December 2020, the Reserve Bank of India announced plans to increase the contactless payment limit in the country from ₹2,000 ($26.65) to ₹5,000 ($66.63).

Global Digital Commerce Market Development

According to the latest worldwide market study by Juniper Research, digital commerce spending will rise to over $11.6 trillion by the end of 2021 -- that's compared to $10.5 trillion in 2020, demonstrating a growth rate of 11.5 percent.

This increase encompasses money transfers, digital goods purchases, physical goods purchases, digital ticketing purchases, banking bill payments, NFC mobile retail payments and QR code retail payments.

The research found that the success of digital solutions during the pandemic means that consumer behavior will become increasingly digitally-led, rather than reverting back to pre-pandemic norms.

The study identified that reactive digital commerce strategies built-in the pandemic by merchants need to turn into proactive, long-term strategies that offer the best user experiences, as competition in the digital commerce ecosystem intensifies.


The new market research study also found that mobile commerce will account for 73 percent of all digital commerce transactions by value in 2021 -- eventually rising to 79 percent by 2025.

According to the Juniper assessment, mobile eCommerce has emerged as the most important way to access services, and although online will remain relevant for higher-value transactions, user experiences will likely be mobile-first.

"Mobile apps are the dominant force in digital commerce, with user experiences becoming critical, as products become heavily commoditized," said Nick Maynard, lead analyst at Juniper Research.

Maynard believes that merchants must leverage AI-based analytics to ensure a truly personalized mobile commerce experience, or they will lose out to the more digitally adept retailers.

Outlook for Digital Commerce Applications Growth

The latest market study also found that remote physical goods purchases will account for the single largest transaction value of any segment in 2021 at 22 percent of the total, followed by money transfer and QR code payments.

Juniper analysts identified that contactless mobile payments will have the highest rate of growth -- increasing over 242 percent in value between 2021 and 2025, as OEM Pay services add spending insights and other value-added services to consolidate gains made during the pandemic.

I believe that the upward trajectory will continue for the foreseeable future, as more CEOs seek significant growth from their digital transformation projects and the launch of progressive new business models.

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