The global eCommerce market will grow at an average of 11 per cent over the next five years with Latin America leading the way, according new data from payments company Worldpay. In its annual Global Payments Report, Worldpay found that the Latin American eCommerce market is set to grow at a CAGR of 19 per cent over the next five years, rising from US$59bn today to $118bn in 2021. The research also found that the three fastest-growing countries for eCommerce are Colombia, Nigeria, and Argentina, forecast to lead the world with annual rises in eCommerce of 31, 30 and 24 per cent respectively.
Worldpay’s research also examined the growth in mobile commerce, and found that total mCommerce penetration is set to rise from 38 per cent in 2017 to 47 per cent in 2021, driven by increased smartphone ownership and faster mobile networks. Latin America is set to be in the vanguard of mCommerce growth, with Colombia seeing a 64 per cent rise, and 45 per cent in Argentina – putting them in first and fifth position globally.
Shane Happach, Chief Executive Officer – Global eCom at Worldpay explained: “No-one can predict the global economic climate over the next five years, but we can be sure that consumer appetite for online and mobile shopping will continue to see extremely strong growth. The rise in smartphone adoption and the continued improvement in mobile networks have important implications for merchants looking to take advantage of an increasingly well-connected middle class with greater disposable income.”
Worldpay’s Global Payment Report 2017 highlighted how the payments landscape is continuing to fragment, with options such as bank transfers, cash on delivery and pre-paid cards stealing market share from more traditional methods. The research found that bank transfers are set to overtake both credit and debit cards as the second most popular global payment method behind e-wallets, adding an additional factor for retailers to consider when planning their eCommerce strategies.