Digital Lifescapes

The world of eCommerce payments has evolved. As we look toward the latter half of this decade, we're witnessing a transformation in how digital commerce operates, with a clear shift toward localized payment solutions within a global marketplace. The numbers tell a compelling story. According to Juniper Research's latest analysis, global eCommerce transactions are set to reach $11.4 trillion by 2029, marking a 63 percent increase from $7 trillion in 2024. This growth isn't just about volume – it's about fundamental changes in how people pay for goods and services online. Perhaps most striking is the projected dominance of Alternative Payment Methods (APMs), which are expected to account for 69 percent of global transactions by 2029, with 360 billion transactions processed through these channels. eCommerce Payments Market Development What makes this shift particularly interesting is how it reflects the democratization of digital commerce. Traditional card-based systems ar...

The rapid growth of eCommerce has brought convenience to consumers worldwide, but it has also opened new avenues for fraudsters to exploit. As online transactions become increasingly prevalent, retail merchants face mounting challenges in safeguarding revenues and maintaining customer trust. This evolving threat of merchant fraud prevention is at a critical juncture, with emerging technologies playing a pivotal role in the ongoing battle against sophisticated fraud threats. Fraud Prevention Market Development The eCommerce boom, accelerated by the COVID-19 pandemic, has created a fertile ground for fraudulent activities. Merchants across various industries are grappling with implementing robust fraud detection and prevention measures to mitigate unnecessary revenue losses from chargebacks and order reprocessing. The stakes are high, as evidenced by Juniper Research's latest market study which forecasts the value of eCommerce fraud will rise from $44.3 billion in 2024 to $107 billio...

Protecting payment data is integral to the security of the digital payments ecosystem. In an increasingly interconnected world, with a growing number of payment options, the need for strong security solutions is clear. With so many payment methods now in use, the need to ensure that consumer data is protected across all channels is growing. One of the core concerns for many forms of data protection is Payment Card Industry Data Security Standards compliance. Network Tokenization is a technology that replaces payment card data with a network-issued token and unique transaction cryptograms. The technology reduces the potential for fraud, improves the merchant and consumer experience, increases approval rates, and reduces overall transaction costs. Network Tokenization Market Development According to the latest worldwide market study by Juniper Research, they forecast substantial growth of 190 percent in network-tokenized transactions -- reaching 400 billion globally in 2028, that's u...

eCommerce is a major growth engine of the Global Networked Economy. It experienced an economic boost as a result of the COVID-19 pandemic. At the same time, the continued shift of commercial and consumer transactions has contributed to even greater upward momentum. There are several trends that are driving the growth of global eCommerce. These include the rise of social commerce, the increasing importance of mobile commerce, and the growing popularity of cross-border shopping. Global eCommerce Market Development Social commerce is enabled by the use of social media platforms to sell products and services. This trend is growing rapidly, as more people are using the channel to discover, learn about and consider new offerings. Mobile commerce is the use of mobile devices to shop for new products and services online. This trend is also growing rapidly, as more people are using their smartphones and tablets to shop for a variety of items and complete purchase transactions. Cross-border shop...

The financial payments sector has experienced rapid growth. New payment methods have been adopted and enhanced by financial service providers, as we increasingly move towards a global cashless society. Traditional financial IT vendors and payment solution providers are learning to adapt. This will include companies who operate in the prepaid cards marketplace. Prepaid cards are a well-established technology, and part of the evolving payments market. Even so, there have been many new developments and transitions that create opportunities for growth. Digital Prepaid Card Market Development According to the latest worldwide market study by Juniper Research, the value of digital prepaid card transactions will exceed $3.98 trillion globally by 2028 -- that's up from $528.7 billion in 2023.  By 2028, the value of digital prepaid card transactions will represent just under 60 percent of total prepaid cards spend, up from 15 percent in 2023, demonstrating the rapid growth of Fintech soluti...

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...

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ...

In the Business-to-Business realm, credit cards provide access to working capital and offer rewards with enhanced controls over spending. Looking ahead, payment networks and card issuers will collaborate with Fintechs to capitalize on this growing opportunity. Virtual cards are financial tools that exist only in digital form and are utilized for online payments. Unlike physical cards, issuers can create a disposable, one-time card, whose unchangeable account numbers are randomly generated for a specific transaction. These digital cards can be linked to either debit or credit accounts, but account information is never shared with merchants. The underlying technology of these cards was first introduced to the consumer payments market almost two decades ago. Today, digital cards are used for corporate accounts. Digital Card Market Development According to the latest worldwide market study by Juniper Research, the number of credit cards issued via digital card issuance platforms will excee...

Business-to-Business (B2B) payments represent a significant upside growth opportunity for fintech vendors. While many businesses have been transferring funds to each other for a long time, the typical process remains difficult to navigate due to the many workflow challenges. B2B payments can take a variety of forms ranging from basic cash payments to sophisticated instruments like virtual cards, which solve the problems of B2B payments to varying degrees, but some core challenges remain. The ever-greater use of process automation is also a key trend within the B2B payments arena and represents a potential solution if the underlying payment systems can support the necessary elements. B2B Payments Market Development According to the latest worldwide market study by Juniper Research, the transaction value of B2B domestic payments across payment methods will exceed $54 trillion in 2023 -- that's up from $49 trillion in 2021. The research findings predict a growth rate of 10 percent, re...

While forward-looking banks and other progressive financial service companies explore ways to develop new eCommerce offerings for online customers, there's still growing momentum within some legacy organizations to pursue an enhancement to traditional in-store payment technologies. Up to 2.5 million biometric payment cards will be issued in 2021 as the market reaps the benefits of significant ecosystem efforts, tailored specially to help reduce product cost, improve yield, and simplify manufacturing processes, according to the latest worldwide market study by ABI Research. Today over 20 biometric payment card pilots are active globally, and the first commercial launch, by BNP Paribas, was announced earlier in 2020. The biometric payment card is a form-factor to help enhance secure authentication, providing a new 'contactless' Point-of-Sale (POS) payment experience. Digital Payments Market Development "It’s taken time for the biometric payment card market to take shape ...

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore...

The convenience and global reach made possible by online channels has led to the development of a broad set of digital eCommerce services. However, the accessibility of the Internet and the ability to commit fraud remotely creates an environment for cyber criminals to prosper. Meanwhile, the potential attack surface for miscreants is enormous -- about 94 billion transactions were made for remote goods purchases in 2016, which is only a fraction of the total eCommerce landscape. That said, advanced security measures are increasingly being implemented to protect against fraud carried out at physical locations. It's for these reasons that fraudsters have developed, and are continually developing, new methods to illegally siphon cash over the Internet. Online Payment Protection Market Development Juniper Research has found that retailers stand to lose $71 billion globally from fraudulent Card-Not-Present (CNP) transactions over the next 5 years. Their latest worldwide market st...

Use of cash varies widely, even in developed markets. However, there's been steady growth of credit and debit card use across the globe. Therefore, point-of-sale (POS) terminals are becoming more commonplace, as growth is driven by adoption of electronic payments by emerging markets. For example, China experienced the most significant growth among the larger emerging economies during 2015, with a year-on-year increase in terminal numbers of ~20 percent. Industry analysts estimate that the global total number of POS terminals reached nearly 80 million in 2015. Worldwide POS Transaction Growth A new market study by Juniper Research has found that the value of contactless POS terminal transactions -- conducted in-store via cards, mobile phones and wearables -- will approach $500 billion annually by 2017; that's up from an estimated $321 billion this year. However, the low value nature of contactless payments means that it will only represent about 5 percent of the total va...

comScore released an analysis of mobile financial services usage showing that 32.5 million Americans accessed mobile banking information on their devices at the end of Q2 2011 in June -- representing 13.9 percent of all mobile users. The study also revealed that 12.7 million mobile users reported using banking applications (apps), showing a notable increase of 45 percent from Q4 2010. “The investments in mobile made by financial services institutions, along with the continued growth in smartphone adoption, have had a truly positive effect on the use of mobile financial services,” said Sarah Lenart, comScore vice president for Marketing Solutions. New apps and mobile-enhanced sites have made it easier for customers to seek out financial information using mobile devices. With media tablets gaining popularity in addition to smartphones, financial service institutions can anticipate additional growth in demand. Nearly 14 percent of the total U.S. mobile audience (32.5 million ...