Online card payments ‘to double by 2022’
Written by Chris Lemmon
Increasing internet access, smartphone penetration and security are driving rapid growth in e-commerce card payments, which are set to more than double in the next four years.
This is according to new research from RBR, which predicts that the number of card payments made online will jump from 29 billion in 2016 to 70 billion in 2022. The research also found that the number of e-commerce card payments was up 28 per cent year-on-year in 2016, representing nine per cent of all card payments.
The study attributes the increase to fast growth in internet penetration and smartphone use, while the number of merchants with an online presence is also rising. The rise in one-click checkouts and ‘suggested additional items’ has also increased the number of transactions. There is also growing consumer trust in online payment security, according to RBR, with involvement in 3-D Secure becoming more widespread.
However, inhibitors of online card payments are still hindering growth in some markets – for example, where domestic scheme cards are not accepted online, or where internet access is sporadic in some locations. RBR also noted that cash-on-delivery is still common in many countries.
In western Europe and Asia-Pacific, 14 per cent and 13 per cent of card payments respectively are made online. But in central and eastern Europe, and the Middle East and Africa, this share is only three per cent. In the former region, people in larger markets still have a preference for cash-on delivery, while a lack of infrastructure is a major factor in the latter.
Research author Daniel Dawson commented: “The number of e-commerce card payments will grow by almost 150 per cent between 2016 and 2022. Increasing use of smartphones, growing confidence in security and improvements in infrastructure across the globe will translate into huge increases in card use online.”