E-commerce still growing more than twice as fast as POS worldwide

This year’s Global Payments Report from Worldpay shows continued appetite for online shopping compared to Point of Sale (POS) payments – with implications for merchants, banks and payments intermediaries.

Around the world, Worldpay note that e-commerce surpassed $6.1 trillion in transaction value last year – and is growing at more than twice the rate of global POS when measured by value.

“E-com surpassed $6.1 trillion in 2023 and is projected to reach almost $8.8 trillion by 2027.”

E-commerce hit 14.4% of all commerce globally in 2023 and Worldpay forecast that it will exceed 17% of all retail sales world-wide by 2027.

Around the world, e-commerce expanded by 10% in 2023 compared to 2022. This half-trillion dollar increase meant that overall online transaction value attained $6.1 trillion last year.

Growing more than twice as fast as in-store shopping

The Global Payments Report 2024 says that e-commerce is projected to grow at 9% CAGR through 2027, more than double the projected growth rate for POS payments (4%).

By 2027, Worldpay project that the total global transaction value spent via e-commerce will be nearly $8.8 trillion, just over 31% higher than it was in 2023.

Emerging markets see faster rises

In markets with a more established history such as North America and Europe, Worldpay forecast high single-digit growth, with Europe projected to grow 8% CAGR out to 2027, and North America at 7%.

By contrast, emerging markets in Latin America, Asia Pacific and the Middle East and Africa are all projected to record double-digit growth at 12%, 11% and 14% respectively.

“Some individual markets show stunning rates of growth in e-commerce compared to POS – up to seven times faster.”

Within this picture, individual markets show staggering growth in e-commerce compared to POS sales, with Colombia seeing e-commerce increase four times faster than POS transactions, and Mexico more than five times faster.

Developed markets are not exempt from this trend, as e-commerce is projected to grow twice as fast as POS in the United States, and fully seven times faster in the UK.

How consumer choice is changing commerce

These findings from the Global Payment Report 2024 show how fast consumers are switching from physical shopping to online.

At a time when people have more payment choices than ever, the onus is on merchants to optimize their payment choices and offer a range of payment methods both online and in-store.

The exact blend of these methods will vary from market to market, driven by consumer preferences in those markets – from cash payments in store through to the growing dominance of digital wallets, the continued strength of card payments, and a plethora of other payment methods.

Now and in the future, payments will be less about technological possibility, and more about people’s choices.

Learn more about the dynamics of the global payments market and how they could affect your businessdownload The 2024 Global Payments Report from Worldpay now


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