The BNPL sector will bring the global value of e-commerce to $ 6 trillion by 2024. (Photo by STR / AFP) / China OUT
- The retail e-commerce market is expected to grow 53% globally by 2024, boosted by BNPL.
- China is currently the global powerhouse when it comes to the e-commerce market, with revenue of $ 1.87 billion and is expected to remain so with an increase of 69.7% by 2024.
- BNPL digital wallets and platforms should facilitate this strong growth rate
The world of retail is transforming with the changing pace of consumer behavior. Payments, as a key role in the buying process, have also adapted to buyers’ demands. The past year in particular is billed as one of the biggest years for the global e-commerce market.
This is also the period when the Buy Now Pay Later (BNPL) market booming thanks to the flexibility it offers consumers.
In fact, according to a study by the UK’s only BNPL travel agency Butter, the value of the e-commerce retail market is expected to increase by 53% in three years, bringing the total value to US $ 6 trillion, the BNPL sector with the second largest increase in market share, just after mobile and digital wallets.
the last digits show that the current size of the e-commerce retail market is US $ 3.914 billion, due to a 70% increase in just four years.
Asia, leader in the global e-Commerce market
Butter’s report stated Asia is in the lead and China is currently the world power with regard to the e-Commerce market, with a turnover of 1.87 billion dollars and which is expected to remain so with an increase of 69.7% by 2024.
The US (49.5%) and UK (37.3%) are also expected to maintain their current second and third place in e-Commerce revenue.
Notably, the sector is expected to experience even larger increases in emerging markets in the coming years, with Nigeria (136.8%), Turkey (120%) and Argentina (110%) among the largest increases Butter said.
It’s also worth noting that the report pointed out that when it comes to the payment methods that are supposed to facilitate this rapid growth rate, only two are expected to gain prominence: digital wallets and BNPL platforms.
Butter co-founder and CEO Timothy Davis said in an emailed statement: “Having seen such rapid growth in recent years, it is only natural that the e-commerce market is starting to see its annual growth rate slow down; More of us than ever are trading this way, and as a result, there are simply fewer new people to convert each year. “
He also said, however, that there is still a lot of growth in the sector and that while it will continue to dominate already established markets such as China, the United States and the United Kingdom, many emerging global markets. are also expected to experience substantial increases.
“This growth will also be driven by a generational change, as the younger generations not only adopt this method of transaction as the norm, but also look to emerging industries such as BNPL for greater convenience in the transaction.”
Which payment methods are dominating the global e-commerce market?
Currently, Butter said digital and mobile wallets account for 44.5% of all e-commerce transactions, by far the most important payment method. The BNPL segment currently represents 2.1%, with credit and debit cards, bank transfers, cash on delivery and deferred debit card charges representing a larger market share.
While digital and mobile wallets are expected to remain the payment method of choice for e-commerce with an increase of 7.2% by 2024, the booming BNPL industry is expected to overtake both cash on delivery and cash on delivery. deferred debit cards. That said, estimated at 4.2%, the BNPL sector is the only other payment method that is expected to gain in importance in the years to come.
Dashveenjit Kaur
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@DashveenjitK
Dashveen writes for Tech Wire Asia and TechHQ, providing research-based commentary on the exciting world of technology in business. Previously, she has reported on the political arena and the fast-paced Malaysian stock market.
