Study: Online card payments may more than double by 2022
The number of card payments made online worldwide is set to jump from 29 billion in 2016 to 70 billion in 2022, according to RBR's annual survey of global payment cards.
The RBR analysis reveals that the total number of e-commerce card payments made worldwide in 2016 was up 28 percent on the year before and represented 9 percent of all card payments. It forecasts that by 2022, 14 percent of all card payments will be made online, according to a press release about the report.
RBR's report concluded that the main drivers of increasing e-commerce use include the fast growth in internet penetration and smartphone use, while the number of merchants with an online presence is also rising.
"Customers appreciate the convenience of e-commerce as it allows them to make impulse buys on the move via mobile, and the prevalence of one-click checkouts and suggested additional items has sped up and increased the number of transactions," the company said in the release. "Significantly, there is also growing trust in security, with enrollment in 3-D Secure (e.g. MasterCard SecureCode and Verified by Visa) becoming more widespread."
RBR noted various factors still affect growth in e-commerce card payments.
In some countries domestic scheme cards are not accepted online, while in developing markets access to the internet can sometimes be sporadic. Cash-on-delivery is still used for goods bought online in a surprising number of countries, as consumers do not always have access to online payment methods, or may be worried their items will not be delivered or want to inspect them prior to payment.
Topics: Mobile Payments