Digital commerce in Europe is projected to cross an important milestone in 2021, further evidence of its growing influence around the world. According to data presented by TradingPlatforms.com, users of digital commerce in Europe will pass 500M in 2021 and will reach a penetration rate of just under 60%.
By definition, digital commerce pertains to all consumer transactions made via the internet which directly relate to online shopping for products and services. Payments can be made through debit cards or credit cards but also through online payment service providers such as Paypal. Transactions between private individuals (P2P) and between businesses (B2B) are notably excluded from calculations.
In Europe, digital commerce has steadily grown in influence especially in the more developed nations of Western Europe. In 2021, digital commerce in Europe is projected to surpass the 500M mark for the first time and reach 506.9M users. The penetration rate is also projected to reach 59.7% in 2021, after first breaching the 50% mark in 2018. Digital commerce penetration rate is expected to reach 67.1% by 2025.
The total transaction value of all digital commerce activity in Europe was steadily on the rise until the pandemic ravaged year of 2020. As a result of the economic uncertainty caused by the COVID-19 pandemic, digital commerce experienced a contraction of 12.18% in 2020 when it recorded a total transaction value of $674.28B.
In 2021, Europe’s digital commerce transaction value is expected to bounce back and experience a 22.15% YoY growth, reaching $823.62B – even higher than 2019’s total transaction value. Europe’s total transaction value from digital commerce is expected to cross the lucrative $1T mark sometime in 2023.
Rex Pascual, editor at TradingPlatforms.com, commented: “Technological advancements in the past couple of decades have given digital commerce a much bigger influence than ever before. Its importance was further highlighted during the lockdowns of 2020 when it allowed companies, big and small, to survive despite the hardships imposed by the pandemic. The strength of the segment and its still bright future is clear to see with projections for 2021 already showing a promising rebound.”