August 29, 2017
Led by the Chinese, e-commerce shoppers in Asia Pacific will spend $1.4 trillion online in 2017, predicted a new report from business analytics firm GlobalData. That means over the past five years, e-commerce in the region will have grown 27 percent compared to 14 percent in Europe and 13 percent in North America during the same period. Among the 15 Asian markets included in GlobalData’s Consumer Payments Insight Survey, China accounts for 75 percent of the revenue generated by e-commerce.
Importantly, the report said, payment cards are taking a back seat in Asia during this period of strong growth and could presage increased adoption of alternative payment methods and digital wallets in the U.S. and Europe. GlobalData found the total share of digital and mobile wallets used for e-commerce grew overall and significantly in places like Singapore (used for 10 percent of transactions in 2013 and 22 percent in 2017) and India (from 7 percent in 2013 to 29 percent in 2017). At the same time, debit- and credit-card usage in those countries has fallen.
And, according to Ravi Sharma, analyst at GlobalData’s Payments Practice, the “rest of the world is likely to follow Asia as digital wallets now offer a secure, quick and more convenient way to make online purchases.”