In an increasingly online world, more consumers are predicted to pay for goods through remote transactions, according to new data from Juniper Research.
The research, titled Mobile & Online Remote Payments for Digital & Physical Goods: Opportunities, Pain Points & Competition 2019-2024, shows that the total transaction value of remote payments for digital and physical goods will exceed $6 trillion by 2024. That figure represents a growth of 53 percent from 2019.
Online sales will be dominated by physical goods, which are forecast to account for almost 80 percent of online retail purchases by 2024.
With the number of smartphone buyers predicted to increase by nearly 60 percent between 2019 and 2024, remote payments will be driven by purchases made via mobile devices, the U.K.-based research firm said. Just 21 percent of purchases will be made using PCs, laptops and connected TVs globally by 2024.
“The shift to mobile has impacted purchasing behavior, with the average value of transactions expected to decline by 2024,” said Juniper officials in a statement. “Underpinning this growth, and the change in average transaction values, is the adoption of mobile ticketing—which is becoming increasingly remote and cashless.”
As part of the effort, Juniper Research assessed the digital strategies of 25 leading bricks-and-mortar retailers according to their levels of agility and innovation. The research firm ranked Home Depot first, due to its proactive e-commerce strategies and engagement with new technologies, such as augmented reality and analytics, to improve online consumer experiences.
“Bricks-and-mortar retailers have to go beyond simple e-commerce to become digital-first companies," said research author, Morgane Kimmich. "Retailers must fundamentally embrace the digital era by optimizing data analytics and embracing new technologies; enabled by radical internal organizational change.”