Online card payments to double by 2022
The number of card payments made online worldwide is set to jump from 29 billion in 2016 to 70 billion in 2022, according to Global Payment Cards Data and Forecasts to 2022, a report by research firm RBR.
According to a press release, RBR analysis shows a 28 percent increase in e-commerce card payments worldwide from 2015 to 2016, and that these payments represented 9 percent of all card transactions. RBR forecasts that by 2022, 14 percent of all card payments will be made online.
“The number of e-commerce card payments will grow by almost 150 percent between 2016 and 2022,” RBR’s Daniel Dawson said in the release. “As the penetration of internet technology grows worldwide, e-commerce will continue to see its share of card payments increase. Increasing use of smartphones, growing confidence in security and improvements in infrastructure across the globe will translate into huge increases in card use online.”
Growth in e-commerce card payments is still constrained by various factors. For instance, domestic scheme cards are not accepted online in some markets. And in developing markets, access to the internet can be sporadic.
Cash-on-delivery is still used for goods bought online in a number of countries, as consumers do not always have access to online payment methods, or may be worried that their items will not arrive or will arrive damaged.
Card payment rates can vary significantly between regions, according to RBR. In western Europe and Asia-Pacific, 14 percent and 13 percent of card payments, respectively, are made online. However, the share is only 3 percent.