By Douglas Hall, founder & CEO, EQUE Corp
A new study from Juniper Research predicts global e-commerce transactions will hit $11.4 trillion by 2029, up from $7 trillion in 2024.
This 63% jump will arise from e-commerce taking off in developing economies. Alternative Payment Methods (APMs) will help consumers in markets without widespread payment card use to shop online for the first time.
Many new payment options let people move money without cash or cards using digital wallets and direct bank transfers.
Alternative Payment Methods Make Online Shopping Easier for Unbanked
The study shows that by 2029, people will make 360 billion online purchases using alternative payment methods, comprising 69% of all online transactions worldwide.
These new ways to pay will help more people shop online – especially those in developing countries who don’t have bank accounts. As delivery services improve, getting products to customers will be easier, making online shopping even more attractive.
The report’s author, Lorien Carter, points out a big jump in other ways to pay. In growing markets, people use these new payment methods more than cards. To get more customers and reach new places, shops must focus on offering these new payment options as a critical strategy.
Payment Service Providers (PSPs) need to focus on local payment likes
The study shows that as PSPs offer more of these new payment methods, they must offer the best payment choices at checkout to help more customers buy.
To boost customer happiness, PSPs should tailor buying choices to fit where people live and who they are. Teaming up with local payment firms that know what customers like and back local payment options can help PSPs turn more browsers into buyers.
Local payment preferences open up an excellent chance for regional and global sellers to grow. I hope PSPs will make fraud prevention a crucial part of keeping transactions safe. As always, if you want to chat about EQUE’s fraud prevention tools that work right when a transaction happens, just give me a shout to reach out on LinkedIn.
About the Author
Douglas Hall is the CEO and Founder of EQUE Corp, an innovative e-commerce fraud prevention service that uses dynamic CVV technology to create “person present” transactions, eliminating card-not-present and friendly fraud and significantly reducing false declines. He is a prominent leader in the global payments industry with decades of experience in finance, a serial entrepreneur, and the publisher of PaymentsNEXT.