New Delhi: According to the predictions of FIS Global Payments Report 2023, Global e-commerce transaction value will rise from $6 trillion in 2022 to over $8.5 trillion in 2026, growing at a CAGR of 9%. The report generated by Florida-based Fidelity National Information Services (FIS) indicates that the pandemic has solidified the shift in consumer behavior towards digital payments, which has continued to drive e-commerce growth.
Growth in e-commerce transaction value has started to slow down compared to the explosive growth experienced during the first 2 years of the pandemic. Nevertheless, e-commerce still grew 10% year-on-year from 2021 to 2022, and it is projected to grow at a 9% compounded annual growth rate (CAGR) from 2022 to 2026.
Among the 14 APAC countries included in the report, digital wallets are leading the e-commerce payment in China, India, Indonesia, the Philippines, and Vietnam. China has been the global leader in this space with 81% of e-commerce transaction value originating from digital wallets in 2022.
With this, the cash use has dropped from 16% to 8% of the total transaction value at the Point of Sale (POS). Some countries have experienced a radical transformation, for instance, Vietnam experienced a dramatic decrease in POS transaction value using cash from 85% in 2019 to 42% in 2022. While Japanese attachment to cash remains stronger attributed to Japan’s aging population, Malaysia is still leading the payment method at POS.