Electronic Commerce is Accelerating

Last week, we took a look at the growth of non-cash payments. This week we’ll examine the growth of electronic payments in emerging markets.

Electronic commerce (eCommerce) is a vast and rapidly growing market, globally. Driven by the proliferation of smartphones and tablets, internet/mobile access, and electronic payments, global B2C eCommerce grew 21 percent in 2012, topping $1 trillion for the first time. Growth in Asia Pacific is even more impressive, with the region predicted to enjoy 30 percent eCommerce growth in 2013 – surpassing North America as the world’s largest market for eCommerce sales. First Data Universal Commerce research undertaken earlier this year shows that emerging economies in Asia – especially China – have enthusiastically embraced eCommerce. The research also revealed that Chinese merchants (46 percent of those surveyed) are indeed ahead of their counterparts in the United States (23 percent) in terms of offering eCommerce capabilities.

With the continued maturation of online purchase tools and consumer confidence, emerging Asian markets are driving the ongoing global acceleration of eCommerce spending. For example, the volume of electronic commerce in Vietnam is projected to reach US$1.3B by 2015, nearly doubling from US$700 million in 2012.

In addition, the Indian eCommerce market is expected to grow by 35 percent in 2013 (after growing 40 percent in 2012), and the Chinese eCommerce market is expected to increase by 65 percent in 2013 over 2012. Without question, the growth potential in these markets is incredible.