You are here: News / Online shoppers spend their way out of recession.
Online shoppers spend their way out of recession.
Total volume of online payments expected to exceed 20 billion in 2010, while the size of an average payment transaction will fall by 18 per cent to just £70
The UK online payments market will experience unprecedented growth in 2010, as the total volume of transactions is expected to exceed 20 billion and the size of a typical online payment continues to fall, hitting just £70 by December 2010.
This is according to analysis from payment services provider Sage Pay following a study of over 27,000 businesses currently trading online in the UK. The findings underline the continued growth within e-commerce and sit in stark contrast to the fate of many high street stalwarts that are battling an increasingly complex trading environment and are themselves turning their attentions online.
According to the analysis, in 2009 transaction growth rose by 3.9% month on month in the run up to Christmas. This represents a significant shift in consumer spending habits and underlines the resilience of online retail trading in 2009.
However, while transaction volumes remain on the rise, the size of an average payment has fallen to just £78.96 in 2009, compared to £83.10 twelve months previously. This five-pound (£4.98) annual decline fits with wider industry reports that suggest the online shopping market will be worth more than £25 billion next year[1], as shoppers become accustomed to making low value payments, more frequently.
“Over the past five years there has been a noticeable drop in the value of the average transaction, as UK shoppers become more comfortable with making electronic payments for a wider variety of goods,” said Simon Black, Managing Director, Sage Pay. “This decline marks a significant milestone in the role of the micro payment, as online shopping becomes a consumer haven for greater choice and better value.”
During the past 12 months, Sage Pay has helped over 10,000 new businesses and their customers, make and receive electronic payments in a safe and secure trading environment. In 2009, an average of 862 e-commerce accounts were opened every month, an increase of 15% on 2008.
Share this article:
Should your colleagues be reading the Retail Bulletin?
Let them know about us.
