Juniper Research: Consumer Retail Spend to Rise by 25% by 2023, Hitting $30 Trillion, as Online Alternative Payments Fuel Growth

BASINGSTOKE, England–(BUSINESS WIRE)–A new study from Juniper
Research has identified a range of strategies for payment providers
to deploy if they are to maximise their opportunities across both the
offline and online space. The research found that retail spend is
expected to increase by $6 trillion globally between 2018 and 2023
(taking total spend to $30 trillion), with growth driven by a
combination of alternative payment mechanisms (most notably wallets) and
online spend.

However, stakeholders face a host of competitive and regulatory
challenges if they are to take full advantage of the opportunity.
According to the study, Strategies
for Payment Providers: Opportunities, Risks & Competition 2019-2023,
reducing friction at checkout remains a key hurdle, with online cart
abandonment rates high.

Meanwhile, the research highlighted that, in many markets, in-store
spend will plateau or even decline; increasing the likelihood that major
retail chains may be obliged to scale back their physical presence even
further.

Industry Stakeholders Assessed

The research also assessed strategic approaches of over 40 payment
processors, mobile wallets and telco payment providers; comparing their
capabilities, breadth and depth of their service offerings and future
prospects in a series of heatmaps and Juniper Leaderboards.

For more insights, download Juniper’s complimentary whitepaper, Game
Changers ~ 5 Companies Reshaping the Payments Space.

Local Solutions Needed to Reduce Friction

The study argued that cart abandonment rates can be reduced by a
combination of measures, including implementation of card-on-file,
one-click payment solutions and ensuring that both popular local payment
currencies and checkout procedures are on offer.

Meanwhile, a Juniper fraud mitigation ROI analysis found the scale of
potentially lost revenue, either through false positives, costly manual
reviews or chargeback costs, was substantially greater than the costs of
robust FDP (Fraud Detection and Prevention) solutions. According to
research author Dr Windsor Holden, “Service providers must focus on
highlighting the bottom-line benefits of identifying genuine
transactions as a priority over simply promoting the ability to reduce
transaction or account fraud.”

Juniper Research is acknowledged as the leading analyst house in the
digital commerce and fintech sector; delivering pioneering research into
payments, banking and financial services for over a decade.