2016 Online Retail Payments Forecast

Online retail transactions, through both PCs and mobile devices, also known as e-commerce, continue their rapid rise, climbing by almost 12%, from $379 billion in 2014 to nearly $424 billion in 2015. Mobile devices continue to comprise an increasing share of e-commerce sales, and the integration of channel options ─ allowing shoppers to select and pay in one channel and pick up or return merchandise in another ─ has enhanced the value of digital options as a medium for commerce. As well, new market trends such as mobile apps speeding up in-store checkouts, apps integrating with mobile wallets to enable purchasing, and the use of embedded and networked device sensors for reordering are contributing to an increasingly dynamic digital commerce marketplace. This report provides an in-depth analysis of developing trends in e-commerce and forecasts online purchasing patterns through 2020. 

Key questions discussed in this report: 

• How is the overall growth of e-commerce trending?
• How are mobile devices affecting e-commerce growth and channel shifts?
• Who are the power users influencing e-commerce growth?
• What are the key drivers affecting retail e-commerce?
• How are Internet of Things (IoT) devices (e.g., Amazon Dash Buttons) transforming retail e-commerce?
• How will the various payments used for e-commerce change between 2015 and 2020?

Companies Mentioned: 1-800-Flowers, Affirm, Amazon, American Express, Apple, Chase, Consumer Financial Protection Bureau, Bill Me Later, Blue Apron, Burger King, eBay, Fabletics, Facebook, Fandango, Flowers.com, Google, Harrys, Dollar Shave Club, Ikea, Instagram, Lyft, MasterCard, Munchery, Nordstrom, Papa John's, PayPal, Pinterest, Rachel Roy, Spotify, Staples, Target, Twitter, Uber, Venmo, Visa, Wal-Mart

It is important to note that our previous 2015 report included services such as Affirm and PayPal Credit within the “online alternative payment” segment, but they have now been broken out as a separate line item. The online alternative payment segment includes PayPal, as well as the branded card network checkout services such as MasterCard MasterPass and Amex Express Checkout.