digitalpayments

Digital Payments to Reach $4.7 Trillion by 2019: Report

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Digital payments will reach $4.7 trillion by 2019, up from $2.5 trillion in 2014, a new report by Juniper Research finds.

The report released on Monday, called Digital Payment Strategies: Online, Mobile & Contactless 2014-2019, finds that the largest net increase in spend will occur through remote physical goods purchases.

While there is organic growth in terms of overall transaction levels due to purchasing on tablets and mobile, a significant portion of shoppers have simply traded their computer or laptop for a tablet.

For hosting providers, the growth in ecommerce is significant in terms of coming up with expansion strategies, ensuring compliance is met in different geographies, and awareness of alternate digital payments, including bitcoin. Web hosts are increasingly looking at strategic partnerships to offer customers flexible ecommerce platforms. Recently, for example, GoDaddy partnered with Spree Commerce, an open source ecommerce platform, as the basis for its ecommerce solution for SMB customers.

Establishing strategies for mobile commerce, or m-commerce, is also significant for hosting providers, particularly as for the first time ever, combined transactions on mobile and tablets will exceed those on desktops and laptops this year.

Asia is one area of notable growth, with emerging markets like China and ecommerce retailers like Alibaba, in particular, accounting for 20 percent of global business to consumer e-retail in 2013. This is especially significant as Alibaba plots its US IPO, which is expected to raise up to $15 billion.

According to a report last year by Forrester, the US, China, Japan, South Korea and the UK were among the top countries poised for ecommerce expansion in the coming years. While the growth of China’s ecommerce market relies heavily on the success of the government in “restructuring economic wealth policies,” the growing population and increase in disposable income will help China catch up to the US.

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