B2C Payment

Ever since the pandemic outbreak, the global B2C e-commerce industry has recorded strong growth, amid the rapid adoption and acceptance of digitization across all segments. The outbreak has changed the way consumers interact and engages in online shopping and retailers and marketplaces are responding to the shift in consumer behavior with personalized shopping experiences.

Across markets, the industry is projected to record strong growth in order volume and transaction value. Investment in virtual shopping experiences is projected to increase over the next three to four years, as metaverse gains more popularity among shoppers globally. For brands and marketplaces to remain competitive, players must identify new opportunities and constantly evolve with the latest emerging trends in the sector.

In Asia Pacific region, the market growth has been driven by increasing access to smartphone devices, growing internet penetration, and rising disposable income. E-commerce players are expanding their operations into new product categories as they seek to provide more value to their customers while driving incremental revenue per user.

The year-end holiday season resulted in strong order volumes for firms in a country like India. In Southeast Asia, e-commerce marketplace sellers have posted strong growth in sales amid the growing shift to online sales channels. Factors such as on-time fulfillment rate and prompt customer services have also supported the uptick in online shopping across the region. While rising inflation and cost of living are expected to have a short-term impact on market growth, the long-term outlook for the B2C e-commerce industry in Asia Pacific remains strong.

The European e-commerce sector is also projected to record steady growth over the next three to four years, amid the growing presence of global leaders such as Amazon and TikTok in the region. The investment from these leading platforms in the European market will keep driving the competitive landscape from the short to medium-term perspective while providing growth momentum to the regional market.

Although the long-term outlook of the European B2C e-commerce sector remains positive, the industry is projected to face growth resistance due to the rising inflation and surging cost of living from the short-term perspective. Consumers have reduced their spending on retail purchases, resulting in a sharp decline in revenue for retailers and marketplaces in the region, during the 2022 year-end shopping season. This trend is expected to further continue in H1 2023.

In the Latin American region, the competitive landscape in the B2C E-commerce sector has been growing at a rapid rate. From enhancing the logistic network to focusing on growth, firms have adopted a different approach to further consolidate their position in the growing e-commerce market. Global players have been also seeking to localize their products and services to gain more traction among consumers. Social commerce is also emerging as a strong sales channel in the Latin American market.

In the Middle East, the loyalty and reward schemes offered by retailers in the region are partly fueling the growth of online shopping in the Emirates. Apparel, footwear, personal care, and beauty, are among the different categories that are showing strong growth potential over the next few years. With domestic and global players looking to capitalize on the growing e-commerce market, PayNXT360 expects infrastructure investment to grow significantly over the next three to four years in the Middle East.