Additional $900bn was spent online in retail transactions around the world in 2020, Mastercard discloses in its latest recovery insights report.
According to ‘Mastercard’s Recovery Insights: Commerce E-volution’, e-commerce made up roughly $1 out of every $5 spent on retail in 2020, from about $1 out of every $7 spent in 2019.
It said roughly 20 to 30 per cent of the Coronavirus Disease-related shift to digital transactions was expected to be permanent.
Grocery and discount stores’ digital gains were sticky, the report highlighted.
“We anticipate that 70 to 80 per cent of the grocery e-commerce surge will stick around for good,” it stated.
International e-commerce rose 25 to 30 per cent during the pandemic year-on-year from March 2020 through February 2021.
Consumers increase their e-commerce footprints, buying from up to 30 per cent more online retailers, the report added.
In a statement on Wednesday, Mastercard’s Chief Economist and Head of the Mastercard Economics Institute, Bricklin Dwyer, said, “While consumers were stuck at home, their dollars travelled far and wide; thanks to e-commerce.
“This has significant implication, with the countries and companies that have prioritised digital continuing to reap the benefits. Our analysis shows that even the smallest businesses see gains when they shift to digital.”
