Continued Growth in Electronic Commerce

Innovations in commercial payments are often preceded by changes in consumer payments. The relative simplicity of consumer payments makes it easier to build consumer payment technologies before tackling the complexities of commercial payments. In addition, widespread consumer adoption of payment technologies, such as online payments and mobile banking, can lead to demand in the commercial space. For these reasons, trends in consumer payment innovation can be early indicators for changes in commercial payments.

Steady Growth

U.S. retail e-commerce volume increased nearly 15% in 2015 to $342 billion. With e-commerce growth rates consistently stronger than overall retail sales growth, e-commerce’s share of total retail spending has grown steadily in recent years, from 3.2% in 2007 to 7.3% in 2015.

Source: U.S. Department of Commerce[1]

As e-commerce moves toward 10% share of total retail sales, mobile commerce is expected to grow exponentially in the coming years. Consumers are becoming more accustomed to using their mobile devices as payment tools and the number of terminals equipped to process mobile transactions continues to grow.

Mobile Commerce Poised for Breakout

Proximity mobile commerce (e.g., mobile wallets/NFC) volume is projected to grow from less than $4 billion in 2014 to more than $210 billion by 2019.

Source: eMarketer, reported in “US Proximity Mobile Payment Transactions to Reach $8.71 Billion in 2015,” eMarketer Daily, November 30, 2015[2]

Retail acceptance of various mobile commerce technologies is growing, led by PayPal® and ApplePay.™

Source: Boston Retail Partners 2015 POS Customer Engagement Survey[3]