The Number of Global Online Card Payments Will Double by 2022
The number of online payments in the world is growing rapidly due to the increasing accessibility of the Internet, the development of new technologies and improved security.
Mobile and online shopping
The number of online card payments in the world is expected to grow from 29 billion in 2016 to 70 billion in 2022, according to the result of the “Global Payment Cards Data and Forecasts to 2022” study conducted by RBR. Compared to 2015, the total number of card payments in e-commerce increased by 28% in 2016 and amounted to 9% of the total number of card payments. By 2022, the total number of online card payments is expected to reach a share of 14%.
The increasing accessibility of the Internet and the widespread adoption of smartphones are the key factors that contribute to the growing popularity of e-commerce. Customers value the convenience that e-commerce provides. Nowadays, they can make spontaneous purchases on the go on their mobile devices. The widespread use of one-click payment methods led to a reduction in time per payment and an increase in the number of transactions. Also, customers’ confidence in security systems has increased during the past years due to 3-D Secure technology (for example, Mastercard SecureCode and Verified by Visa), which has a significant impact on the number of online card payments.
Factors that slow down the increase in the number of online card payments
The increase in the number of card payments in e-commerce is affected by a few negative factors. In some countries, national payment system cards cannot be used for online purchases, and in developing countries, not all consumers have access to the Internet. In many countries, payment for goods ordered via the Internet is often made at the time of delivery due to the lack of access to online payment systems.
Significant differences by region
Although one in ten card payments in the world is made online, the situation can vary if we look at specific regions. In Western Europe and Pacific Rim countries, the share of online card payments is 14% and 13%, respectively. In Central and Eastern Europe, as well as in the Middle East and Africa, it is only 3%. In large markets in Western Europe and Pacific Rim countries, buyers still prefer to pay for goods on delivery, while in the Middle East and Africa, a low level of the development of the necessary infrastructure slows down the process.
A share of card payments in e-commerce will increase with further development and spread of Internet technologies in the world. RBR expert Daniel Dawson commented on the current situation: “Between 2016 and 2022, the number of card payments in the e-commerce segment will increase by almost 150%. Due to the popularity of smartphones, increasing confidence in security systems, as well as the development of infrastructure in all countries, consumers will use cards for online payments more often”.