Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s report –Gateways Become Rising Force in U.S. Payments Industry, Part 1: A Market Overview
How Hard Will COVID-19 Impact U.S. e-Commerce Sales?
- Mercator forecasts total U.S. e-commerce sales to decline 13% in 2020 vs. 2019; approximately $772 billion.
- Following 2020’s decline, Mercator anticipates 18% growth in both 2021 and 2022; $914 and $1,079 billion respectively.
- The key factor in identifying the e-commerce rebound is how quickly travel and entertainment sales recover.
- With the increase in e-commerce shopping due to COVID-19, 2020 will likely be the year when mobile use surpasses 50% of e-commerce sales.
- Consumers have largely become hybrid shoppers across all merchant sales channels, using mobile for research, shopping, and buying.
- 59% of tech forward consumers used their mobile phone to make a purchase in 2019; 63% did for research.
About Report
Payment gateways are the fastest growing part of the payments industry’s value chain and have become disruptive forces that in some instances supplant legacy payments players such as merchant acquirers and processors. Payment gateways are a high growth and an intensely competitive category within the U.S. payments industry, offering both core and added-value services aimed at both consumer and B2B online merchants. A new research report from Mercator Advisory Group, Gateways Become Rising Force in U.S. Payments Industry, Part 1: A Market Overview, provides analysis and insight on the current state of the U.S. payments gateway market, supported by a Mercator Advisory Group e-commerce sales data forecast.
“E-commerce has been the driving force in the rise of payment gateways. These firms are lean and nimble, with the DNA of fintechs. Gateways serve online merchants, enabling them to accept card payments across borders and in multiple currencies for both consumers and B2B. With a crowded field of competing gateways, merchants face a daunting task of choosing from this large vendor category that serves the U.S. market with an ever-expanding array of payment solutions,” commented Raymond Pucci, Director, Merchant Services Practice at Mercator Advisory Group, the author of this report.
