According to new research by Juniper, the global ecommerce market could reach a staggering $11.4 trillion by 2029, driven not by a particular area of sales, but by new and emerging payment methods.
The 63% growth, up from $7 trillion in 2024, is said to be largely driven by alternative payment methods (APMs), enabling consumers in non-card-centric markets to partake in online shopping.
Defined as the cardless and cashless transfer of funds, APMs include digital wallets and account-to-account payments.
Ecommerce growth fuelled by alternative payment methods
According to the report, an estimated 360 billion ecommerce transactions will be made using APMs by 2029, representing more than two-thirds (69%) of transactions in the market. Juniper believes that this will encourage a more inclusive online retail environment whereby so-called “unbanked” individuals in emerging markets will be able to participate in online retail.
Factors such as smartphone and internet access together with consumer desire for broader options that meet their needs are driving the change.
Looking ahead, payment service providers looking to stay ahead of the curve will prioritize APMs, and online retailers will need to offer suitable payment options during the checkout process to attract and retain customers.
Payment options can also be tailored to customer locations and demographics in order to stand out from other sellers.
Research author Lorien Carter summarized: “Alternative payment options have grown substantially, with APM transaction volumes leapfrogging cards in emerging markets. As merchants look to attract new users and geographies, they must consider offering APMs a key strategy to accomplish this.”
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