Mobile will lead the way as desktop loses steam.
The e-commerce market in Singapore is set for unprecedented growth as it is tipped to expand by 48% to $9.98b (US$7.4b) by 2022 at a compound annual growth rate (CAGR) of 7%, according to a study by payments technology company WorldPay.
With desktop sales projected to remain stagnant, mobile commerce or mCommerce is expected to overtake the former as the most popular channel for online sales in 2019 to account for over half (52%) of all online sales in Singapore. This represents a brisk CAGR of 13%.
A separate report by CIMB notes that online retail is expected to account for 10.3% of total retail sales in Singapore by 2022 from 5.3% in 2017.
The report also noted that e-wallets in the Lion City continue to show robust growth at a CAGR of 14%, and are expected to boost their share of the market from the current 10% to 13% by 2022.
High levels of mobile adoption in Singapore, Hong Kong, Australia, India and China, is accelerating the e-commerce push. In 2022, China's e-commerce market is tipped to be worth $2.40t (US$1.78t). by 2022. Meanwhile, India and Australia's online retail sector is expected to be worth $128.04b (US$94.9b) and $58.83b (US$43.6b) respectively in three years time, according to WorldPay projections.
“Asia leads the way in a trend we’ve seen across the globe – the rise of mCommerce and alternative payments like eWallets, both in-store and online, as consumers increasingly seek the most friction- free shopping and payment experience," Phil Pomford, general manager for Asia Pacific, Global Enterprise eCommerce at WorldPay said in a statement.
This consumer preference for frictionless payments should further fuel the shift towards eWallets and invisible payments in Asia Pacific. Wordpay anticipates Asia Pacific to lead the way in adopting eWallets, accounting for two-thirds of regional payment volume by 2022.
Do you know more about this story? Contact us anonymously through this link.