November 7, 2017
A wide-ranging study of e-commerce from the perspectives of both consumers and retailers had several interesting data points for those concerned with card-not-present payments. The study, undertaken by fulfillment and cross-border technology provider Pitney Bowes, found cross-border is figuring more prominently in the plans of consumers and retailers, that marketplaces are becoming a global force in e-commerce and that digital wallets continue to make inroads as a preferred online payment method in many international markets.
The survey found 70 percent of online shoppers made a cross-border purchase, up 6 percent from last year. On the other hand, 62 percent of retailers currently engage in cross-border e-commerce and, by next year, that number figures to rise sharply to 93 percent.
From a payment method perspective, more global consumers polled preferred digital wallets (41 percent) to credit cards (39 percent) when making cross-border purchases. Last year the opposite was true. In the U.S., unsurprisingly, credit cards were more popular than digital wallets but only by a margin of 40 percent to 32 percent. Germans and Austrians prefer digital wallets while the Japanese and South Koreans still prefer credit cards.
“It is important that cross-border retailers focus on the consumers they are trying to reach; not necessarily the consumers they are most used to dealing with,” said Lila Snyder, executive vice president and president of Global E-commerce and Presort Services at Pitney Bowes. “That goes for developing their strategies around payment options and just about every aspect of their global e-commerce business.”