Solutions like Open Banking & BNPL to Fuel Ecommerce Growth in the Future

How banks can find a winning position in the buy-now-pay-later market | EY  - Global

In a recent study, Juniper Research believes that creative solutions like open banking, one-click checkout wallets, and the popular BNPL trend will all help grow e-commerce sales globally in the next five years. 

Juniper believes that these forces will continue driving online sales even after the pandemic’s short-lived boost has faded.

Global e-commerce volume reached $4.9 trillion last year, according to a UK-based thinktank, and is forecasted to touch $7.5 trillion by 2026, with China dominating 37% of the market. 

According to Juniper, increased availability of different e-commerce platforms, particularly mobile devices, will drive global growth. However, the research cautions that with the rise in online sales would come an increase in fraud, such as account takeovers, identity theft, and false chargebacks.

Open Banking

With Open banking, financial technology firms can check customer account balances and move funds to cover online orders. 

E-commerce payment processors “should work with experts in new key payment sectors to keep up with changing retailer expectations regarding payment acceptance methods,” according to the research group, citing e – wallets and crypto along with open banking.

So far, open banking has taken on a bigger position in the global payments sector as international card networks acquire fintechs specializing in this area. Tink AB was swallowed by Visa Inc., while Aiia and Finicity Corp. are now under Mastercard Inc.


According to the research, physical items will continue winning e-commerce expenditure, to make up 82 percent of payment volume by 2026. Payment enablers should offer BNPL arrangements, which enables the buyer to pay for items into four equal installments settled within a 6-week window, minus interest. 

But as we speak, the Consumer Financial Protection Bureau has already initiated an inquiry against BNPL, and investigations show that shoppers with several accounts are more likely to skip a payment.

Though still a trend to watch, US e-commerce slowed dramatically last year as the COVID-impact faded. According to the Census Bureau, 2021 Q3 sales were $214.6 billion, up 6.6 percent YOY. Much more will surface when Q4 results are out.

Author Bio

Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.