Cardholders move away from physical stores in search of low prices and convenience.
An investigation by the RBR consultancy analyzes the role played by payment cards in the e-commerce sector and the impact that the growth of e-commerce is having on the use of cards at traditional points of sale.
According to global data on payment cards and their forecasts for 2023, spending on electronic commerce amounted to US $ 4.5 trillion in 2017, 13% more than in 2016. The main drivers of this growth are the greater convenience compared to the buy in traditional stores and in some cases lower prices.
Continuous migration to digital channels
RBR estimates that e-commerce spending will increase to US $ 11 trillion by 2023. Daniel Dawson, who led RBR’s research project, said: “As consumers increasingly migrate from physical media to digital channels, the owners As smartphones increase and mobile payment applications become more and more sophisticated, e-commerce will experience significant additional growth. “
In addition, new means to improve security will dissipate consumer concerns about the risk of fraud. By 2023, e-commerce is projected to represent 24% of card spending, compared to 18% in 2017.
Consumers use e-commerce to save money
RBR’s research highlights numerous factors that are driving growth in e-commerce, although many of them vary across countries. For example, in the United Kingdom, retailer campaigns such as Black Friday and Cyber Monday have led to a migration of purchases away from traditional stores, while in Ukraine, which accounts for 10% of e-commerce spending in Central Europe and Eastern, customers use online shopping as a way to reduce costs in a complex economic environment.
For its part, Canada is an example where the convenience of being able to buy products online instead of visiting a physical trade is particularly important, especially because a large number of people live in rural areas.
The arrival of companies such as Uber, iTunes or Netflix have also boosted electronic commerce in several markets.
Although these services are of low value, they are in some way influencing the culture of the online purchase of products or services of low value in consumers.