A new study from Juniper Research has found that transaction values for physical goods sales online will grow from $3.3 trillion in 2020 to $4.4 trillion by 2025, with this 33 percent growth hastened by the COVID-19 pandemic.

The pandemic has fundamentally altered customer behaviors toward e-commerce, with these behaviors likely to be sustained in the longer term, according to Juniper Research. Further growth in global online purchase values will be driven by increased availability of e-commerce in emerging markets over the next five years.

The new research, eCommerce Payments: Emerging Trends, Opportunities & Market Forecasts 2020-2025, predicts that emerging markets will be significant drivers of growth, with the Indian Subcontinent and Latin America expected to experience rapid acceleration of physical goods transaction values between 2020 and 2025; seeing growth of 116 percent and 82 percent respectively. This expansion highlights the necessity for stakeholders to address pain points around cross-border payments, including varying local payment regulations and differing consumer payment preferences.

Research author Susannah Hampton said, “It is critical for merchants and payment providers to address local regulatory requirements and enable preferred consumer payment methods across all regions, or they will fail to capitalize on the highest growing e-commerce markets.”

For more insights, download Juniper Research’s free whitepaper: Alternative Payments and the Evolving eCommerce Landscape.