A new forecast of the annual transaction value of online, mobile and contactless payments predicts a CAGR of 13.46% between 2014 and 2019. Juniper Research the number will reach $4.7 trillion by 2019, up from just over $2.5 trillion this year.
The report – Digital Payment Strategies: Online, Mobile & Contactless 2014-2019 – observed that the largest net increase in spend would occur through remote physical goods purchases. It highlighted the dramatic surge in activity in emerging markets such as China, with the online retailer Alibaba accounting for 20% of global B2C (business to consumer) and C2C (consumer to consumer) eRetail worldwide in 2013.
However, it observed that while there was organic growth in the overall transaction levels due to increased purchasing on tablets and mobile, a significant proportion of tablet usage represented migration from desktop activity. It pointed out that combined transactions on mobile handsets and tablets would exceed those on desktops and laptops for the first time this year.
The report also noted that there was accelerating migration from physical format (DVD, CD) to digital (stream, download) across all core content sectors. These included a marked trend towards VOD (Video On Demand) from players such as Lovefilm and Netflix at the expense of DVD, with online VOD services in commercial deployment in most European markets.
Meanwhile, the report says that contactless activity will primarily be driven by card purchases rather than mobile, although it argued that mobile transactions should be boosted by HCE (Host Card Emulation)-based NFC (Near Field Communications) services.
For more data on Digital Payments access CardData®. For information and commentary on Digital Payments visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. Custom RAM Research® projects on Digital Payments are available exclusively through CardWeb.com.®