While alternative online payment methods are popular in many markets around the world, e-commerce payments via cards are set to double over the next four years, according to a new report. Mirroring the trend of e-commerce compared to overall retail, London-based consultancy RBR found that e-commerce will account for a rising share of overall card payments. In its Global Payment Cards Data and Forecasts to 2021, RBR predicted card spending online will increase from 12 percent of all card expenditure in 2015 to 18 percent in 2021.
In addition to increased Internet and smartphone penetration, more e-commerce merchants and an increase in the use of digital wallets, RBR said cardholders globally are becoming more confident in the security of the e-commerce channel. Increased use of sophisticated antifraud systems and the expected implementation of 3D Secure 2.0 in many markets is driving consumer assurance that payment cards are safe to use for e-commerce purchases.
RBR forecasts that e-commerce card spending, which grew 26 percent in 2015 to $2.7 trillion globally, will more than double to $6 trillion by the end of 2021.