Shaped by new technological advancements and changing consumer preferences, eCommerce is set to accelerate even further in 2024. While facing rising living costs, consumers are becoming more selective with their online spending, making it even more imperative than ever for businesses to adopt holistic payments strategies that encompass the unique needs of their customers.
Our latest report, Global Payments Outlook 2024, discusses the payment landscape of five core regions across the globe – Europe, Asia Pacific (APAC), the Middle East and North Africa (MENA), the US and Canada, and Latin America (LATAM). This eBook provides a valuable glimpse of some of the significant factors shaping consumer purchases across the globe, while providing businesses with insights to stay nimble and maximise their revenue.
Economies remain resilient amidst the ongoing cost of living crisis
While many regions continue to grapple with increased living costs, it’s expected that most economies will transition to economic growth and recovery towards the backend of this year.
APAC will continue to grow at a modest rate, reaching a GDP growth rate of 4.2%. This will mainly be underpinned by robust domestic demand in emerging markets like mainland China, Malaysia, India, Indonesia and the Philippines. Complementing the APAC region’s moderate growth is the stabilisation of inflation rates across countries, with the annual inflation rate forecasted to moderate to 5.4% this year.
As the world transitions to net-zero exports, the US, Canada and Latin American countries stand to gain from increasing global demand for sustainable commodities, minerals, technologies and services. In particular, the US has recently implemented legislative measures to support the future growth of clean energy technology sectors, aiding innovation and global competitiveness in this space.
Looking ahead for Europe, GDP growth varies country by country, with Ireland on track to reach an impressive growth rate of 5% in 2024. Comparatively, Germany and France, which are among Europe’s largest economies, will both experience smaller GDP growth of 1.4% over the same period. Meanwhile, Europe’s travel sector is set to flourish, with figures forecasted to return to pre-pandemic levels this year.
For LATAM, Brazil and Mexico continue to account for the highest GDP in the region with US$2.27 trillion and US$1.99 trillion respectively. With several lucrative international trade agreements and alliances in place with the US, more Asian companies are setting their sights on LATAM as a strategic market to expand into.
Meanwhile, the US and Canada will both see subdued economic growth in the year ahead, with falling inflationary pressures expected to translate into increased consumer purchasing power. In good news for households, rate hikes for both countries are expected to halt, with monetary policy forecasted to ease by the end of 2024.
eCommerce is adapting across the globe
The eCommerce industry is currently undergoing a rapid transformation, presenting new opportunities for businesses to extend their reach and maximise their revenue online.
Current projections all lead to the APAC region being a key eCommerce market for 2024, forecasted to bring in a sizable online retail sales value of US$2.5 trillion in 2024 – up from US$1.5 trillion in 2019. Not too far behind this sits Europe and the US, each with estimated eCommerce market sizes of $604.59 billion and US$843.82 billion respectively for 2024.
Interestingly, the US currently ranks second globally in terms of cross-border buyers, behind China, with 69.8 million shoppers and around a third of US digital buyers are expected to make a purchase abroad in 2024. Complementing this is the strong smartphone and internet adoption rates in Canada and the US, making them prime markets for merchants to expand their cross-border eCommerce reach.
Looking at online purchasing trends for Latin America, our report reveals that consumers are more inclined to purchase electronic items online, which accounts for 36.46% of all eCommerce revenue. This is followed by fashion (18.53%), food (10.88%), beauty and personal care (7.36%) and furniture (6.87%), according to Statista. Alongside this, growing internet penetration rates have shaped greater adoptions of mobile commerce across the region. By 2025, it’s expected that 73% of the Latin American population will have access to a smartphone and 75% of eCommerce transactions will be made with a mobile device.
Consumers are embracing new and emerging payment methods
2024 has brought forth ample opportunities for businesses to leverage alternative payment options like eWallets and bank transfers. While cards remain the most common payment method for Europe, LATAM, MENA and the US, the Asia Pacific region has transitioned to almost completely using digital wallets for purchases.
As our report uncovers, the shift from cash to digital payments in China has largely been shaped by the social interaction and financial tracking provided by super-apps. By 2026, it’s forecasted that digital wallets will account for 73% of all eCommerce payments across the Asia Pacific region. This is followed by credit cards (10%), account-to-account (6%), debit cards (5%), Buy Now Pay Later (4%) and cash on delivery (1%), as found by Statista. Alipay and WeChat Pay are some of the most popular online payment methods adopted in China.
Conversely, credit cards accounted for 58% of all online purchases in the LATAM region in 2023, followed by debit cards (15%), cash vouchers (10%), wallets (10%) and bank transfers (4%). However, card preferences differ by country. For instance, the Brazilian Central Bank’s Pix has grasped an impressive market share away from debit cards. On the other hand, Mexican consumers prefer debit cards and credit cards when shopping online.
While card payments remain king in MENA, subscription payments are surging in popularity across the region, as locals seek greater convenience and cost-effective purchase options. This was the case for over 50% of MENA consumers, with 40% also saying it allows them to test out new products, personalise their buying as well as maintain a consistent lifestyle routine.
As the above has illustrated, it’s not possible to adopt a one-size-fits-all approach when expanding abroad. Therefore, it’s imperative for businesses to partner with a payment service provider who can provide local expertise and strong knowledge of payment regulations to support their smooth entry into a new market.
Expand into new markets smoothly with emerchantpay
Here at emerchantpay, we’re passionate about connecting customers and businesses across the world, using our seamless all-in-one payment offering. As a leading payment service provider and acquirer, our global team of payment experts will work closely with your business to map out a bespoke solution, helping you to create tailored and engaging purchase experiences for your customers.
Download your copy of the Global Payments Outlook 2024 now and unlock vital insights on how to leverage consumer behaviour trends between countries. The report also uncovers the varying payment preferences across regions, emphasising the importance of country-specific payment strategies.
Get in touch with our payment specialists and learn how your business can maximise profitability and conversions globally today.