A new study from Juniper Research indicates that the transaction values for physical goods sales online will grow from $3.3 trillion in 2020 to $4.4 trillion worldwide by 2025, with the 33% growth the difference represents hastened by the COVID-19 pandemic.
The pandemic has fundamentally altered customer behaviors towards e-commerce, according to the Juniper research paper “Alternative Payments and the Evolving E-commerce Landscape,” and new consumer behaviors are likely to remain evident in the longer term. Increased availability of e-commerce in emerging markets as it occurs over the next five years will be a driving factor in growth gains going forward.
OEM Pay, where transactions are accomplished via a smartphone manufacturer-backed wallet, such as Apple Pay and Google Pay, will see a surge in use, with purchase volumes for remote goods anticipated to grow by 730% globally between 2020 and 2025, Juniper noted. OEM Pay is seeing increasing consumer awareness driven by its use in contactless purchasing.