A new study has found that the volume of global e-commerce transactions made via OEM Pay will exceed 30.7 billion by 2026; rising from 6.1 billion in 2022.
OEM pay and chatbot messaging growth explodes
This outstanding growth of 403% will be driven by rapidly increasing customer demands of frictionless checkout experiences across multiple e-commerce channels.
The new research predicts that OEM Pays will benefit, as alternative payment methods like BNPL (Buy Now Pay Later) are becoming progressively mainstream.
E-commerce users are increasingly demanding low-friction checkout processes, which OEM Pays, including Apple Pay and Google Pay, are well placed to offer.
Mobile Contactless Payments Drive Growth
The research predicts that e-commerce OEM Pay transactions will grow by 516% between 2022 and 2026 in West Europe.
It identified the region as a leader in the growth of digital wallets use over e-commerce channels, further driving the development of OEM Pay transactions in the region.
However, the report anticipated that growth outside of West Europe will lag, as mobile contactless payments are yet to gain significant traction.
Security Features Compelling for Users
The research identified an increase in consumer awareness for the enhanced security measures offered by OEM Pay services, such as biometrics and tokenisation.
These features were found to be helping drive adoption into the mainstream.
It reported a growth of 63% for OEM Pay transaction volume globally in the year 2022, largely driven by a greater consumer acceptance and trust of mobile payments throughout the pandemic period.
The research recommended that e-commerce merchants capitalise on this now by ensuring that security processes are consistently robust across all payment methods.
Chatbots Begin to Dominate
In a similar study, the total number of chatbot messaging apps accessed globally will increase from 3.5 billion in 2022 to 9.5 billion by 2026.
This growth of 169% will be driven by the increasing adoption of omnichannel retail strategies by e-commerce players and the rising integration of chatbots within messaging platforms.
The research assessed multiple chatbot channels, including Internet browsers, messaging apps and RCS messaging.
It found that retail spend over chatbot messaging apps will account for over 50% of global chatbot retail spend by 2026.
It predicts that the rapid development of messaging app functionalities will attract high‑value online retailers to chatbot messaging apps over competing channels.
Emulating China Is Crucial for Chatbots
The report found that the total spend over chatbot messaging apps in China will surpass $21 billion by 2026, with applications such as WeChat providing a definitive framework for chatbots that is branded for each retailer.
It urges chatbots vendors outside of China to emulate this framework to drive further chatbot adoption by offering services, including payment capabilities, social media and rich media.
Additionally, as chatbot traffic grows, machine learning must be used to assess past conversations and further automate the omnichannel retail experience over chatbots.
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