Singapore has a positive outlook for the e-commerce industry’s future. The country expects a 48% increase in e-commerce operations or about $9.98 (US$7.4) billion by 2022.
The mobile platform will be the driving force behind the expansion as the desktop approach takes a backseat.
Based on the research conducted by Worldpay, a payments technology firm, the Singaporean e-commerce sector is booming at a compound annual growth rate (CAGR) of 7%.
Earlier reports claimed, desktop sales are gradually declining while mobile commerce or mCommerce is set to break a milestone as the most famous channel for creating online sales in 2019. This accounts for more than half or 52% of all recorded online sales in the country, bringing a CAGR of 13%.
In a report released by CIMB, a commercial bank, it cited that online retail is seen to achieve 10.3% of Singapore’s total retail sales by 2022 compared to 5.3% record in 2017.
The report added that the Lion City’s e-wallets have a steady growth at 14% CAGR. By 2022, the market share is expected to increase from this year’s 10% to 13% in its operations.
With the rising mobile usage within the region such as Singapore, Hong Kong, Australia, India, and China, e-commerce is being pushed higher and gaining momentum.
In China alone, the e-commerce market by 2022 is anticipated to grow to $2.40 trillion (US$1.78 trillion). For both India and Australia, their online retail industry will be worth $128.04 billion (US$94.9 billion) and $58.83 billion (US$43.6 billion), respectively, in the next three years, according to WorldPay forecasts.
WorldPay’s Phil Pomford, general manager for the Asia Pacific, Global Enterprise eCommerce, cited in a statement that Asia is at the forefront in terms of being a market leader globally in mCommerce and optional payment methods such as eWallets, both when making purchases in-store and online.
Pomford added today’s consumers are increasingly looking for better alternatives, less stress-free shopping, and payment schemes.
As consumers’ preference is geared towards frictionless payments, the shift is focused more on employing eWallets and invisible payment methods in the Asia Pacific region.
Worldpay sees Asia Pacific getting on top with the use of eWallets, which is expected by 2022 to be around two-thirds of the regional AP payments’ volume.