Woman using mobile phone, online payment, banking and online shopping via banking mobile app, E-commerce and financial technology concept. Image used for representative purpose only.
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Global e-commerce transaction value will rise from $6 trillion in 2022 to over $8.5 trillion in 2026, growing at a 9% CAGR, predicted FIS Global Payments Report 2023.
Florida-based Fidelity National Information Services, Inc. (FIS) offers a wide range of financial products and services.
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The report indicated that the pandemic has solidified the shift in consumer behaviour towards digital payments, which has continued to drive e-commerce growth. In addition, technological advancements and improvements in digital infrastructure have made online shopping more accessible and convenient for consumers, contributing to the development of e-commerce, it said.
According to the report, all regions, except Europe, saw double-digit growth in e-com transactions from 2021-2022, with the highest growth of 21% reported in the Middle East and Africa. Of the 40 markets covered in the report, 37 saw double-digit YoY growth from 2021 to 22. Markets in Latin America, the Middle East, Africa, and Southeast Asia, except for Thailand at 9%, continued to be high-growth markets. The report predicted a mid-teens CAGR in these regions through 2026.
However, the report further said, some challenges still needed to be addressed to sustain this growth. For example, the report indicated that the lack of digital infrastructure and financial inclusion in some emerging markets may hinder e-commerce growth. Additionally, regulatory challenges and cross-border trade barriers could create obstacles for businesses looking to expand globally, it cautioned.
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Common Services Centers under the Ministry of Electronics & IT (MeitY) said it has invested in the Open Network for Digital Commerce (ONDC) to promote e-commerce and logistics in rural areas. “It is for the first time that CSC has invested in an initiative like this. ONDC will democratise digital commerce by moving to an open network. The partnership will also generate employment opportunities for rural youth by enabling a last mile logistics network,” Dinesh Tyagi, MD, CSC SPV, said in a statement.
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