The Future of Global E-Commerce:
A 2024-2028 Forecast
Global e-commerce continues to surge, transforming the retail landscape. According to recent forecasts, global online retail sales soared from $1.3 trillion in 2014 to $4.4 trillion in 2023, with projections reaching a staggering $6.8 trillion by 2028. This shift is driven by technological advancements and changing consumer behaviors, positioning e-commerce as a crucial component of the retail industry. Key Drivers of E-Commerce Growth Several factors contribute to this growth:
Marketplaces and Social Commerce: Platforms like Amazon, Alibaba, and emerging social commerce channels are redefining shopping experiences, making it easier and more engaging for consumers to purchase goods online.
Online Grocery and Quick Commerce: The convenience of buying groceries online and the rise of quick commerce services provide consumers with fast, reliable delivery options.
Livestream Selling and DTC Commerce: These innovative approaches enable brands to connect directly with consumers, driving engagement and sales.
Find out more! Access the complimentary report, read "our take" on the subject and contact us to see how we can help you enhance your gift card initiatives.
Our take: Embracing Global Retail and E-Commerce Trends with a Friendly Touch
BY CHRIS ABELE, VP, HEAD OF GLOBAL AND NEW FLOWS, FISERV
In the fast-paced world of global retail and e-commerce, staying informed about the latest trends and market shifts is key for businesses striving to thrive in the digital era. The recent Forecast Report from Forrester - "Global Retail E-Commerce Forecast, 2024 To 2028" (accessible above) provides valuable insights into the evolving landscape. Let's explore some key points outlined in the report..
Geography: LATAM eCommerce Embraces Digital Transformation
The Latin America (LATAM) region shines as a vibrant and increasingly digital market, offering merchants exciting opportunities to connect with a growing consumer base. Noteworthy statistics reveal a significant rise in online retail sales, projected to grow from $109 billion in 2023 to an estimated $192 billion by 2028 , reflecting a robust 12% Compound Annual Growth Rate (CAGR).
A recent study by McKinsey underscores the ongoing trend in LATAM towards embracing digital payment methods such as debit cards and innovative solutions like PIX, signaling a shift away from traditional cash transactions. This transition highlights the importance for businesses to adapt their payment strategies to meet the evolving needs of consumers.
For further insights, check out McKinsey's analysis on payments in Latin America.
Payment Methods: Revolutionizing Pay-by-Bank Options in the US
The US market is witnessing a transformative phase with the introduction of enhanced pay-by-bank payment methods, unlocking fresh possibilities for merchants. Innovations like Real-Time Payments (RTP) for merchant transactions and the rise of secure Pay-by-Bank products are reshaping the payment landscape, making transactions more accessible and secure for consumers.
At Fiserv, we are able to seamlessly connect real-time payments to our Pay by Bank capabilities. This is a key differentiator and underscores the critical role Fiserv plays in the financial ecosystem. Holding a unique position in the industry, Fiserv has access to unmatched data capabilities, including a leading data aggregation service, and is the only provider able to offer a proprietary real-time payments solution backed by risk-managed and guaranteed ACH, all powered in-house.
This powerful combination of assets is helping Fiserv deliver a compelling Pay by Bank solution for clients, including recent work to help Walmart introduce a US Pay-by-Bank experience, furthering their strategic move towards creating seamless and secure payment experiences for customers.
Regulators: Navigating Evolving Payment Landscapes
Regulatory bodies across the globe are intensifying their focus on global card networks, payment processors, and merchants to ensure the delivery of valuable services to consumers. The scrutiny stems from escalating network fees, including scheme fees, which have surged by over 30%, prompting regulatory interventions to enhance competition and safeguard consumer interests.
This regulatory momentum is palpable in diverse markets like the UK, where proposed obligations seek to foster competition among major players like Visa and MasterCard. Additionally, recent resolutions in the US addressing long-standing fee disputes underscore the importance for businesses to align with evolving regulatory frameworks.
Merchant Call to Action: Embracing Strategic Shifts and Innovation
With LATAM's digital sphere flourishing, businesses are encouraged to explore new avenues to engage with the evolving market dynamics. Localizing operations within the region may emerge as a preferred strategy, emphasizing the need for direct involvement in LATAM markets.
Given the expanding scope and enhanced security features of Pay-by-Bank options, businesses should reevaluate their assumptions and leverage these advancements to optimize payment experiences and combat fraud effectively.
Regular interactions with relationship teams are pivotal to staying informed about annual card network changes and leveraging updates to streamline payment processes and enhance customer experiences.
Continuous improvement of fraud detection tools is essential to bolster defenses against evolving fraud tactics and safeguard business interests.
By embracing these strategic recommendations and proactively adapting to the evolving retail and e-commerce landscape, businesses can position themselves for sustained growth and success amidst dynamic market forces.
Stay tuned for more insights and updates as we navigate the exciting realm of global retail and e-commerce together!