mCommerce Changing Payment Landscape

Mobile eCommerce – or mCommerce – payments will reach $3.1 trillion in 2025 from $2.1 trillion in 2020, says a study from Juniper Research. The pandemic’s massive boost to digital wallet services in the offline arena with OEM Pay (mobile pay apps) has been a key driver of greater mCommerce usage, while accelerating the already rapid transition from offline to online services. The U.S. market alone is forecast to see volume growth in smartphone payments for remote goods of 74 per cent between 2020 and 2025. The uptick in mCommerce will also translate into rapid growth of new payment models such as buy now, pay later (BNPL). Deploying BNPL in checkout processes will mean a significant shift away from traditional fee and annual percentage rate (APR) based credit card models for online shopping. This is particularly prevalent among Millennials who are less convinced of the benefits of credit card ownership. BNPL also offers significant advantages to merchants as a way to increase average basket size, while boosting the user experience for shoppers.