Consumer Behavior

Online spend jumped $900B in 2020

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April 8, 2021

The COVID-19 pandemic drove online consumer spend big-time in 2020, about $900 billion more than the previous two years, according to a Mastercard Economics Institute report.

Whether 2021 will see the same e-commerce activity depends on current COVID-19 vaccination efforts and consumer interest in returning to shopping at physical retail locations, according to a CNBC report on the study's findings.

The pandemic, which first hit the U.S. in March of 2020, prompted retail shutdowns and mandates for residents to stay at home and limit social interaction.

Online shopping accounted for $1 of every $5 spent on retail worldwide in 2020, according to Mastcard, a spike compared to $1 out of every $7 in 2019.

Mastercard Chief Economist Bricklin Dwyer expects 20% to 30% of the $900 billion in added online spend will likely continue for the next few years, according to CNBC.