A new study by Juniper Research, the foremost experts in fintech and payments markets, has found by 2029, the value of global eCommerce transactions will reach $11.4 trillion; up from $7 trillion in 2024. This substantial 63% growth will be driven by the adoption of e-commerce across emerging markets. In these regions, APMs (Alternative Payment Methods) will enable consumers in non-card-centric markets to purchase online for the first time.
APMs are any cashless and cardless way of transferring funds, such as digital wallets and account-to-account payments.
APMs Improving Access to e-commerce for the Unbanked
The research forecasts by 2029, 360 billion e-commerce transactions will be made using APMs; constituting 69% of global e-commerce transactions. As APMs make e-commerce payments more inclusive, unbanked consumers in emerging markets will shift their purchasing habits online. This shift will be complemented by increased investment in delivery ecosystems; making deliveries more viable and increasing eCommerce’s value proposition.
Research author Lorien Carter commented: “Alternative payment options have grown substantially, with APM transaction volumes leapfrogging cards in emerging markets. As merchants look to attract new users and geographies, they must consider offering APMs a key strategy to accomplish this.”
Payment Service Providers (PSPs) Must Prioritise Payments Localisation
The research predicts that as PSPs offer more APMs, offering suitable payment options to end users at checkout will be crucial in optimising customer conversion rates. PSPs must maximise customer satisfaction by tailoring purchase options to the location and demographic of individual consumers. PSPs can maximise these conversion rates by partnering with local payment companies that have in depth knowledge of consumer preferences and support regional payment options.
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