It Took off During the Pandemic, And Now E-Commerce Shows No Signs Of Slowing – Digital Transactions – Digital Transactions


Despite the economy reopening after the disruptions caused by the Covid-19 pandemic, e-commerce continues to boom as consumers embrace shopping online from home or via their mobile device. 

A recent study from FIS Inc. reveals that e-commerce transaction values in the United States grew 10% in 2021 compared to 2020, while e-commerce values in Canada grew 13% during the same period. 

On a regional basis, e-commerce transaction values in North America are expected to grow 11% annually, more than twice the projected pace of point-of-sale volume, and reach $2.3 trillion in 2025, according to the FIS report. POS transaction volume is projected to grow 5% annually through 2025.


One trend helping to fuel the growth of e-commerce is consumers’ use of mobile devices to make purchases. Mobile commerce in North America is projected to grow 15% annually through 2025, compared to 8% for desktop e-commerce. In the U.S., mobile commerce as a share of e-commerce is projected to rise from nearly 37% in 2021 to more than 42% by 2025, according to the report.

When it comes to preferred payment methods for e-commerce transactions, credit cards are the leading payment method. In the U.S., 30.2% of consumers making an e-commerce purchase pay using a credit card. The use of credit cards for e-commerce purchases is even more common in Canada, with 50.4% of consumers making an online purchase by paying with a credit card.

Debit cards were used by 21% of U.S. consumers to make an e-commerce purchase and 13.4% of Canadian consumers. 

Looking ahead, credit and debit cards are projected to experience a decline in their respective shares of e-commerce transactions in North America through 2025. “In the U.S, declining shares for both credit (to 27.4%) and debit (to 20.2%) are projected, though absolute transaction values will steadily rise for each,” the report says. “In Canada, credit cards will lose longstanding majority status in 2022, projected to decline to 42% by 2025. Debit projects a steady rise of more than 5% share through 2025 to nearly 19%.”

The popularity of digital wallets continues to rise among North American consumers. Digital wallets accounted for 29.2% of North American e-commerce transaction value in 2021. 

In 2022, digital wallets are projected to surpass credit cards in the U.S. as the preferred payment method and are projected to account for nearly one-third of North American e-commerce spending by 2025. Apple Pay, Amazon Pay, Google Pay, and PayPal will be the wallets most commonly used by U.S. consumers.

That won’t be the case in Canada, the report says. Wallets are projected to remain Canadian consumers second most-preferred payment option for e-commerce transactions, behind credit cards. In 2025, 25% of Canadian consumers are expected to make digital wallets the primary payment method, up from 21.8% in 2021.

“Leading wallets in Canada reflect the growing global reach of Chinese brands, with Alipay cited alongside Apple Pay and PayPal as most popular among consumers,” the report says.

Buy now, pay later continues to be an emerging force in e-commerce, accounting for 3.8% of North American online transactions in 2021, up from 1.6% in 2020. By 2025, BNPL is projected to account for 8.5% of e-commerce transactions in North America. In the U.S., BNPL is projected to represent more than of 9% of e-commerce transactions, or about $180 billion, by 2025. In Canada, BNPL is projected to account for 7% of e-commerce transactions by 2025.

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