LONDON–(BUSINESS WIRE)–New data from fintech and payments research specialists Kaleido Intelligence has found that B2B and B2C eCommerce spend on physical goods and digital services will reach $6 trillion in 2022, up from $4.8 trillion in 2020. COVID-19-related shifts in buying behaviour have driven a strong migration towards eCommerce and more consumers now use online shopping in greater frequency.
Kaleido’s latest Data Hub update found that the pandemic has had a significant impact on both consumer payment behaviour as well as how merchants deliver products and services to customers. For example, the ePOS finance industry continues to evolve at a rapid pace and BNPL eCommerce transactions powered by the likes of Klarna, PayPal, Affirm and AfterPay will reach nearly $135 billion in 2022. In comparison, traditional ePOS credit and installment payments will approach $500 billion for the first time in 2022.
Cross-Border eCommerce Remains Unimpacted During COVID-19
The longer-term growth trends in cross-border eCommerce remain largely unaffected by the pandemic and consumers around the world are increasingly open to shopping internationally. For example, according to a European survey conducted by Kaleido in H1 2021, around 30% of consumers in Belgium, Netherlands and Germany shopped more online from overseas stores during the pandemic, with a further 57% stating no changes to cross-border purchases compared to before the pandemic.
Kaleido forecasts that cross-border B2C eCommerce will reach $1.2 trillion in 2022, with Europe accounting for nearly $340 billion.
Nitin Bhas, Chief of Strategy & Insights at Kaleido Intelligence added: “Driven by the success of cross-border sales for many retailers, merchants around the world are now looking to expand their growth by entering direct-to-consumer sales across global markets. International shipping and sales are becoming critical for future growth and will enable domestic merchants to compete with leading marketplaces and retail websites that are driving cost-effective international purchases.”
Subscription eCommerce Gathers Pace Across Digital Services & Physical Goods
Subscription eCommerce for physical goods is becoming increasingly common amongst online users, fuelled by consumer demand for goods including beer and wine, food and meal kits, pet food, cosmetic and beauty products, video games, and health supplements.
According to Kaleido’s 2021 European consumer survey, around 35% of respondents stated that they had increased the number of online subscriptions for physical goods during the pandemic, with a further 13% interested in online product subscriptions.
eCommerce physical goods and digital services subscription transactions is forecast to exceed $220 billion in 2022, with North America accounting for nearly $100 billion.
About Kaleido Intelligence
Kaleido Intelligence is a specialist fintech and payments consulting and market research firm with a proven track record delivering fintech and payments research at the highest level. Research is led by expert analysts, each with significant experience delivering fintech research and insights that matter.