COVID-19 pandemic caused significant changes in consumers’ spending behavior
Global spending on digital commerce to recover by 2021. Source: shutterstock.com
According to Juniper Research, global spending on digital commerce will drop by 14% this year amid lockdowns and decreases in consumer spending. In fact, the study forecasts a fall of $9.7 trillion in spending, compared to $11.2 trillion in 2019. At the same time, the study found that digital commerce spend will recover in 2021.
Besides, widespread restrictions on transport usage and events put the digital ticketing area at risk. The research expects the digital ticketing spend to drop by 59% in 2020 compared to the previous year. Since airlines face cash flow challenges that are reshaping the industry, airline ticketing will struggle to complete the recovery by 2025.
As the pandemic forced people to use contactless payments instead of cash and shop for groceries online, there will be permanent changes in consumer behavior to the larger use of digital services. This way, it will bolster growth in digital commerce spend over the next 5 years.
It is also expected that payments for digital goods, including videogames or video subscription services, will keep increasing during the pandemic.
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