Australia’s boom in online commerce is forecast to reach $37.7 billion by 2013, an increase of more than $1 billion since PayPal released its forecasts this time last year.
Its report, Secure Insight: Changing the Way we Pay, developed in conjunction with Forrester Research, Nielsen and the Australian Centre for Retail Studies (ACRS), explores the factors influencing Australia’s boom in online commerce.
The findings showed that online commerce is set to reach $30.2 billion by the end of 2011 and is expected to grow at 12.2 per cent throughout 2012.
PayPal claimed that with 97 per cent of Australian Internet users shopping online, Australian retailers are planning to invest heavily in their online strategies over the next year.
It stated that despite a strong Australian dollar, domestic retail continued to account for 73 per cent of online consumption in Australia, however, as 63 per cent of Australians shopped overseas in the last year, there were opportunities for Australian retailers to increase market share.
“Online commerce is no longer just about having a website. Consumers are connecting through local, digital, social and mobile channels and these emerging channels bring huge opportunities for local Australian merchants to compete in the online market and increase engagement with their customers,” PayPal Australia managing director, Frerk-Malte Feller, said.
The study also showed that the increasing prevalence of Internet-enabled smartphones – which comprise 65 per cent of the total handset market in Australia - is powering the growth in online commerce and disrupting both the traditional and online retail environments.
PayPal Australia sees mobile payments increasing by 430 per cent year-on-year.
As transactions begin to take place in new environments, PayPal’s report reveals a changing attitude amongst consumers when it comes to making payments.
According to the research, consumers feel the choice of payment method is not theirs to make, with retailers restricting choices.
Regularly having to switch between payment methods depending on the product they are purchasing, 40 per cent of consumers want a simpler payment solution.