Tuesday, June 25, 2024

    Ecommerce payments set to be dominated by OEM Pay thanks to its low friction

    The volume of global ecommerce transactions made via OEM Pay such as Apple Pay and Google Pay will exceed 30.7 billion by 2026; rising from 4.7 billion in 2022, according to Juniper Resarch.

    This outstanding growth of 550% will be driven by rapidly increasing customer demands of frictionless checkout experiences across multiple eCommerce channels.

    The new research, ecommerce Payments: Emerging Trends, Opportunities & Market Forecasts 2022-2026, predicted that OEM Pays will benefit, as alternative payment methods like BNPL (Buy Now Pay Later) are becoming progressively mainstream. ecommerce users are increasingly demanding low-friction checkout processes, which OEM Pays, including Apple Pay and Google Pay, are well placed to offer.

    The research recommended that merchants work closely with payment platforms to increase acceptance of digital wallets, or risk losing market share to better connected competitors.

    Mobile contactless payments drive growth in West Europe

    The research predicted that eCommerce OEM Pay transactions will grow by 516% between 2022 and 2026 in West Europe. It identified the region as a leader in the growth of digital wallets use over ecommerce channels, further driving the development of OEM Pay transactions in the region.

    However, the report anticipated that growth outside of West Europe will lag, as mobile contactless payments are yet to gain significant traction.

    Security features compelling for users

    The research identified an increase in consumer awareness for the enhanced security measures offered by OEM Pay services, such as biometrics and tokenisation. These features were found to be helping drive adoption into the mainstream. It reported a growth of 63% for OEM Pay transaction volume globally in the year 2022, largely driven by a greater consumer acceptance and trust of mobile payments throughout the pandemic period.

    The research recommended that eCommerce merchants capitalise on this now by ensuring that security processes are consistently robust across all payment methods.

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