Digital Wallets Spur Global Online Commerce to $7 Trillion by 2020: Report

Global online commerce will grow to $7 trillion by 2020, driven by significant growth in mobile retail commerce, according to a new report. Indian mobility solutions provider Mahindra Comviva and Boston-based consultancy Aite Group said the proliferation of digital wallets, both in the online and physical retail worlds, is spurring growth of mobile retail commerce, which currently sits at 44 percent and will continue to “grow rapidly in every corner of the globe.” For organizations that offer them, the report said, digital wallets are becoming an enabler of commerce rather than a stand-alone revenue generator.

“The true value of the digital wallet goes beyond the transaction; it has immense potential to generate an unparalleled amount of customer transactional data,” said Srinivas Nidugondi, senior vice president and head of mobile financial solutions for Mahindra Comviva. “This helps service providers and merchants harness information to engage the customer with a better experience for each stop on the path to purchase. With a combination of widespread Internet access and increased bandwidth, devices can capitalize on the bandwidth to deliver a new customer experience which is driving the explosion in wallet development.”