The total transaction value of remote payments for digital and physical goods will exceed $6 trillion by 2024, representing a growth of 53% from 2019, says a new study by Juniper Research.
According to the study, online sales will be dominated by physical goods – forecast to account for almost 80% of online retail purchases by 2024. As a result, the company urges traditional retailers to offer omnichannel offerings to ensure services align with ever-increasing consumer expectations.
Remote payments, meanwhile, will be driven by purchases made via mobile devices, with the number of smartphone buyers increasing by nearly 60% between 2019 and 2024. Consequently, just 21% of purchases will be made using PCs, laptops and connected TVs globally by 2024, says the analyst.
The shift to mobile has had an impact on purchasing behaviour, with the average value of transactions expected to decline by 2024.
Underpinning this growth, and the change in average transaction values, is the adoption of mobile ticketing – which is becoming increasingly remote and cashless.
Morgane Kimmich, analyst at Juniper Research and the report author explains: “The retail market has undergone a radical transformation, driven by an increasing focus on consumers, says the study. Indeed, shoppers are now everywhere: in stores, online or both at the same time by checking the latest deals on their smartphones or tablets. This has put a crucial emphasis on customer convenience; forcing retailers, both in store and online, to offer more seamless and frictionless shopping experiences coupled with omnichannel payments. “
Kimmich continues: “By the end of 2019, eCommerce will have a significant role to play with 44% of the global population purchasing physical goods and 27% purchasing digital goods sales. Since eRetail has been disrupting the retail market, traditional bricks-and-mortar retailers have been obliged to incorporate more digital channels into their own offerings, while those that have failed to execute successful transformations have often become insolvent.”
Kimmich concludes: “Moving deeper in the digital era, retailers are now fighting for customer retention and reduced costs through new technologies, such as AI, cryptocurrencies, distributed ledger technology, IoT and M2M, among others.”