After taking a look at Payvision’s key achievements in 2015, we now have a quick glance at the global ecommerce scene and its evolution in 2015. Even with the explosion of ecommerce adoption over recent years, from the global retail sales – both online and offline – of USD 22.5 trillion in 2014, online sales made up less than 6% of the total number and is forecasted to grow to 12.4 percent by 2019. In 2015, the global ecommerce accounted for 7.5 percent of global retail sales (via eMarketer). If you’re a big fan about research data and want to learn more, download our latest report on cross-border ecommerce
Slowdown of the growth of the BRIC countries
There is no question that developing markets, such as China, India and Brazil, are seeing a faster rate of ecommerce growth than the more proven markets across Western Europe and the North America. However, during 2015, we have seen the Brazil’s real facing great challenges over the local real currency in Brazil, making it harder for international players to access the market as the currency volatility is disturbing for businesspeople. We have also witnessed the Chinese economy slowing down but still registering decent growth numbers, the question now is how much will it decelerate.
As Indian consumers continue to prefer cash as a payment method – almost 45 percent – due to limited banking and access to credit cards, India was challenged by AML issues and it is really looking into going from cash payments to cashless transactions. Many Indian online merchants are forced to accept cash-on-delivery as an online payment method. This, coupled with poor logistics infrastructure, has been a barrier to greater ecommerce growth.
Mobile as the buzzword & enabler for ecommerce conversions
Across the globe, the value of mobile commerce has been forecast to top USD 500 billion by 2017, with Asia accounting for half the market. Today, Asia accounts for almost 40 percent of mobile payments. At a global level, we have observed a shift, even though a large majority of transactions is still POS, ecommerce and payments on mobile devices are growing fast.
In 2015, with players such as Apple and Samsung bringing offerings to the front line, the use of mobile phones for payment at the counter (mPOS) was expected to grow by a huge 1000 percent.
One of the big promises for 2015 was Apple Pay but still the amount of transactions is low; one year later, it only accounted for about one percent of total transactions in the U.S. By launching its peer-to-peer payments service, it’s clear that Apple is still looking for the right angle to move forward.
So, mobile commerce continues to explode, globally. In turn, a new breed of consumer was borne out of a need to be continually connected to friends, retailers, services, and their finances. Consumers in 2015 expected to shop anywhere, at any time of day, from any device, machine or channel, and they will continue to do so in 2016 and the years to come. Never before has there been a greater need for small and medium businesses to invest in mobile payment technology. Merchants who partner with the correct provider, with both experience and innovation, can ride this wave to provide best-in-class mobile payment solutions to their customers. Let us know how we can help you.
Payment market consolidation
The market consolidation process speeded up in 2015, with four big IPOs filled in within the payments industry; PayPal, WorldPay, First Data and Square. This shows investors’ trust in the business of payments and the market will continue growing and consolidating in 2016. Will be back soon with more information on the payments market consolidation and predictions fro 2016.