DIGITAL COMMERCE TRANSACTIONS SURPASS 1 TRILLION BY 2024

KUALA LUMPUR, Sept 25 (Bernama) -- Digital commerce transaction volumes will reach 1.08 trillion globally by next year; rising from 966 billion this year, a very strong 12 per cent growth in a single year, according to a new study from Juniper Research.

The new study, which covers digital money transfer, digital and physical goods purchases, digital ticketing purchases, banking, NFC payments, QR code payments and bill payments, found the strongest growth will be in three markets; driving overall digital commerce adoption.

According to Juniper Research in a statement, the top three highest growth sectors are near field communication (NFC) payments with 30 per cent; digital ticketing (19 per cent); and physical goods (12 per cent).

The research found NFC payments are surging; boosted by increasing contactless acceptance, particularly within transit.

The move to open-loop payment systems within ticketing has had an important network effect; boosting awareness of contactless payments among potential users and increasing usage within markets that previously lagged behind, such as the United States and Germany.

“The shift towards open-loop payments within ticketing has now begun to reach more remote areas, becoming the default payment method in many markets. We anticipate this momentum to boost contactless payments overall, and also increase open-loop adoption in other areas, such as for EV charging,” said research author, Nick Maynard.

Furthermore, the research identified with the rising cost of living reducing disposable income, digital commerce vendors need to differentiate themselves to maintain growth.

As such, the research recommends vendors in highly competitive markets, such as money transfer, focus on reducing the cost of payments as the key differentiator in the current climate.

-- BERNAMA