E-commerce in Europe is expected to reach a milestone in 2021, as the number of e-commerce users is likely to exceed 500 million. The penetration rate is also expected to reach nearly 60%.
Publicity
White paper: Banking on borderless payments
This FinXP white paper explains how the payment strategy is helping online merchants to grow overseas. Learn about common payment and banking challenges, as well as solutions to increase revenue. Download now!
E-commerce in Europe is becoming more and more popular on the continent and in the rest of the world. Data presented by TradingPlatforms shows that there were 480.9 million digital commerce users in Europe last year. And that number is expected to reach 506.9 million euros by the end of this year.
Digital commerce in Europe defined
TradingPlatforms defines digital commerce as all consumer transactions made over the Internet and directly related to online purchases of products and services. “Payments can be made by debit or credit cards, but also through online payment service providers such as PayPal. In particular, transactions between individuals and between businesses are excluded from the calculations.
The penetration rate of e-commerce users in Europe is expected to reach 59.7%.
This year, e-commerce in Europe is expected to exceed the 500 million mark for the first team and even reach nearly 507 million euros. At the same time, the penetration rate is expected to reach 59.7%. This rate passed the 50% mark three years ago and is now expected to reach 67.1% by 2025.
This year, a higher transaction value than in 2019
According to TradingPlatforms, the total transaction value of all digital commerce activities in Europe contracted 12.18% last year and recorded a total value of around € 573 billion. This year, the online retail industry is expected to rebound by growing 22.15% year-on-year, reaching nearly 700 billion euros, which would be higher than the total transaction value in 2019.
“The technological advancements of the last two decades have given digital commerce a much greater influence than ever before”, editor Rex Pascual comments. “Its importance was further underscored during the lockdowns of 2020 when it enabled businesses, large and small, to survive despite the difficulties imposed by the pandemic. The strength of the segment and its still bright future is evident with projections for 2021 already showing a promising rebound. “
