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05/05/2021

Digital Commerce Spending Will Hit $11.6T

Digital commerce spending is soaring, rising to over $11.6 trillion by the end of 2021, according to Juniper Research.
ecommerce

That’s 11.5% higher than the previous year’s spending rate of $10.5 trillion. Digital commerce spending includes money transfer, digital goods purchases, physical goods purchases, digital ticketing purchases, banking bill payments, NFC mobile retail payments and QR code retail payments.

Executive summary

The huge jump in digital spending during the Covid-19 pandemic is likely to stick around, given the double-digit growth rate in 2021. Instead of reverting back to pre-pandemic levels, digital spending will continue leading consumer behavior. 

 

The findings were detailed in Juniper’s study, “Digital Commerce: Key Trends, Sectors and Market Forecasts 2021-2025.” It advised merchants that reactive digital strategies devised during the pandemic should be turned into long-term, proactive strategies with the best user experiences, in order to maintain users as competition ramps up.

The research also found that mobile purchases are rising fast, with mobile commerce accounting for 73% of all digital commerce transactions volume in 2021. By 2025, that figure will rise to 79%.

“Mobile apps are the dominant force in digital commerce, with user experiences becoming critical, as products become heavily commoditised,” research author Nick Maynard Merchants said in a statement. “Must leverage AI-based analytics to ensure a truly personalised mobile commerce experience, or they will lose out to more digitally adept merchants.”

That means that merchants must put the mobile user experience first, even as online will remain “relevant” for higher-value transactions. Mobile payments will also rise 242% from 2021 to 2025, reflecting the surge in usage.