Digital Receipts Market Overview
The Digital Receipts market size is estimated to reach $2.3 billion by 2027, growing at a CAGR of 7.5% during the forecast period 2022-2027. The market growth is due to increasing adoption of retail shopping applications & websites, increasing use of food purchase applications, rising penetration of online payment and delivery options and so on to rising preferences for online shopping, growing use of electronic receipts in retails industries and so on. Retailers can incorporate marketing messages or customized messages to individual customers using digital receipt technology. It aids in customer relationship management and retailers can easily build email lists, and collect client data at the transaction level by using digital receipts. Retailers can use digital receipt to identify top consumers and the types of items they are most likely to purchase in the future. Additionally, rising use of smartphones, increasing use of internet of things, artificial intelligence technologies in shops and growing trends towards mobile payments are some of the major factors set to transform the Digital Receipts industry outlook in the coming time.
Digital Receipts Report Coverage
The “Digital Receipts Market Report – Forecast (2022-2027)” by
IndustryARC, covers an in-depth analysis of the following segments in the Digital Receipts Market.
By Distribution System:
E-mail, Text, Application and Website.
By Shopper Type:
Non-loyalty and Loyalty.
By Industry Vertical: Retail
industry, Apparel industry, Sports, Home goods, Footwear, Health & Wellness
and Others.
By Geography: North
America (U.S, Canada, Mexico), Europe (U.K, Germany, France, Italy, Spain, Others),
APAC (China, Japan India, South Korea, Australia, Others), South America
(Brazil, Argentina, Others), RoW (Middle East, Africa)
Key Takeaways
- Based on distribution, E-mail segment is analysed to grow at the fastest rate of 7.9% in the Digital Receipts market during the forecast period 2022-2027, owing to growing use of e-commerce sites, increasing use of mails, rising adoption of online shopping apps & websites so on.
- Retail industry in Digital Receipts market is analysed to grow with the highest CAGR of 8.4% during 2022-2027 attributed to rising consumer demands for personalized shopping experiences, growing sustainability movements combined with demands for reducing operational cost and so on.
- North America dominated the Digital Receipts market with a share of 35% in 2021, attributed to increasing adoption of paperless receipt system, rising customer demands for convenient & efficient shopping solutions, increasing use of internet of things & AI and so on.
- Rising adoption of retail shopping & food purchase application and increasing penetration of online payment solutions are analysed to significantly drive the market growth of Digital Receipts market during the forecast period 2022-2027.
Global Digital Receipts Market Value Share, by region, 2021 (%)
Digital Receipts Market Segment Analysis- By Distribution
System
Based on distribution
system, E-mail segment is analysed to grow at the fastest rate of 7.9% in
the Digital Receipts market during the forecast period 2022-2027, owing to the growing use
of e-commerce sites, increasing use of mails, rising adoption of online
shopping apps & websites so on. Electronic receipts are environment
friendly as they eliminate the use of paper bills. They are cost efficient and
convenient, offering a digital receipt to customers minimises the risk of
losing it. They help in building positive customer experience thereby helping a
business to grow as per the needs and demands of the consumers. According to a
report published by Paymentsense in 2021, more than half (53%) of emails are
opened on smartphones, and personalised emails have 6x greater transaction
rates. It goes on to say that 72 percent of individuals prefer to get
promotional content via email, while only 17 percent prefer social media. Additionally,
increasing penetration of smartphones, rising demands for mobile payments and
online banking facilities are some of the significant factors impacting the
growth of e-mail segment in Digital
Receipts industry outlook overtime.
Digital Receipts Market Segment
Analysis- By Industry
Vertical
Retail industry in Digital Receipts
market is analysed to grow with the highest CAGR of 8.4% during 2022-2027
attributed to rising consumer demands for personalized shopping experiences,
growing sustainability movements combined with demands for reducing operational
cost and so on. The digital receipt system records transaction data,
which can be used for current and future marketing campaigns. Retailers can use electronic receipts to increase online store traffic
and establish social media communities. They can promote customer interaction
by providing links to website, social media and loyalty programmes in receipts and
help in customer relationship management. In June 2022, The Lidl supermarket launched an initiative to
phase out paper receipts in order to save 10 tonnes of paper per year. The
initiative's major goal is to pave the road for more responsible consumption
while also improving the customer experience. The option to digitise receipts
allow customers to safely and conveniently maintain their purchase history in
the app while participating in green initiatives and actively supporting
long-term sustainability commitments. Such factors are analysed
to impact the growth of retail industry within Digital Receipts industry
outlook in the coming time.
Digital Receipts Market Segment
Analysis- By
Geography
North America dominated the Digital Receipts market with a share of 35% in 2021, attributed to increasing adoption of paperless receipt system, rising customer demands for convenient & efficient shopping solutions, increasing use of internet of things & AI and so on. In November 2020, American Express has launched a new digital receipt that allows customers to view precise transaction details for purchases made from firms such as Apple, Square, Microsoft, and Google. It will allow users to identify and track their transactions from certain shops. Members can view detailed purchase data such as merchant name and logo, date of sale, order number, and product(s) purchased utilizing the service, among other data elements. They can access the data via the Amex website or app. Additionally, increasing industrialization, growing adoption of user-friendly shopping solutions in the region are set to transform Digital Receipts industry outlook within North American markets.
Digital Receipts Market Drivers
Rising Adoption of Retail Shopping and Food Purchase Applications is Boosting the Demand for Digital Receipts:
The growing popularity of retail shopping
and food purchase apps is driving-up the demand for digital receipts. Mobile apps
help in personalization of consumer buying experiences. Increasing development
of smartphone shopping apps and retail shopping websites. Smartphones are the
most effective means of reducing friction in shopping channels. The retail
website makes it easier for customers to find what they're looking for and
investigate products before making a purchase in-store. Customers do not have
to worry about the time because they may order a product at any time and on any
day. This is one of the most significant advantages of mobile applications, as
it significantly improves customer service for shops. In June 2022, Amazon
Business launched a new Android and iOS optimized app aimed at improving
procurement experiences for the customers. The app enables business clients to
easily access business exclusive services on-the-go instead of having to wait
for a desktop/laptop to order supplies needed to run their company. According
to a Pew Research Center report published in 2021, there were around 2.14
billion internet shoppers worldwide in 2021. This means that more than a
quarter of the global population has access to at least one e-commerce site and
has made at least one online purchase. It further states that the number of
online shoppers is expected to increase at a rapid speed in the coming years
due to the pandemic and lockdowns. Such factors will help in propelling the growth
of Digital Receipts market size in the long run.
Increasing Penetration of Online
Payment Solutions are Positively Impacting the Growth of Digital Receipts Market:
Growing
usage of digital payment options is boosting the growth of the digital receipts
market. Modern cashless payment mechanisms such as mobile wallets, peer-to-peer
(P2P) mobile payments, real-time payments, and cryptocurrencies are fast
evolving. Many payment technology companies are cooperating with traditional
financial institutions to meet the demands for personalised shopping
experiences and merchant preferences in the digital age. The rise in the
adoption of mobile payment solutions can be attributed to improved broadband
access, increased mobile commerce, the emergence of new technologies such as virtual
reality, artificial intelligence, internet of things and rapid digitization in
both developed and developing countries. Furthermore, growing e-commerce,
digital remittances, digital business payments and mobile B2B payments are
bolstering the non-cash transaction environment. In July 2022, Qori has created an online payment
solution using bank or cryptocurrency wallet that does not require the download
of a proprietary app. Hundreds of thousands of retailers can now use pay by
bank and pay by crypto technologies through partnerships with European
payment service providers, terminal distributors, ecommerce integrators, and
POS makers. Qori will initially target France, Spain, and the United Kingdom,
promising a totally digital, multi-channel, and less expensive alternative to
card payments. According
to an Appventurez report published in 2021, the volume of mobile wallet
transactions would increase to 274.4 billion. As a result, many major
corporations, like Apple, Google, and Samsung, have begun to offer mobile
wallets to facilitate this transaction. It further states that more businesses
will strive to develop their own brand-specific wallets in the coming years. These factors are encouraging the use of the
electronic receipts thereby
accelerating the Digital Receipt market size in the coming time.
Digital Receipts Market Challenges
Increasing
General Data Protection Regulation combined with Cyber Security Concerns are
Restricting the Growth of Digital
Receipts Market:
Growing
General Data Protection Regulation, paired with cyber security concerns, is
limiting the growth of the Digital Receipts market. The General Data Protection
Regulation is an attempt to modernize regulations to safeguard personal data
and data processing for the general public. It now holds businesses responsible
for how they manage, keep, and handle their customers' personal data, which
might range from their email address to their name, gender, or age. Companies
who misuse, alter, sell, or utilize their customers' personal data violate GDPR
legislation and may face substantial fines. As a result, businesses avoid
utilizing digital receipts because they must be issued via email or text.
Emails are frequently connected to bank accounts and are readily compromised. With
recent revelations of data breaches at major corporations such as BA and Uber,
people are understandably anxious about what firms are doing to safeguard their
valuable and lucrative information. Make sure your emails are stored in a
secure system, and remember to stay up to current on upgrades, credentials, and
user rights. Aside from security concerns, there are other more practical and
obvious drawbacks to using digital receipts. For example, spelling mistakes or
other human errors are certain to occur, and consumers may find up leaving the
store with no proof of purchase at all. In January 2020, Sonos accidentally
discloses the 450+ email addresses of its consumers in an email mishap. A Sonos
representative was responding to customer complaints. Instead of BCC, all
emails were CC'd, which meant that every customer who got the email could
access the personal email addresses of everyone else on the list. The event was
reported to the ICO, which could result in sanctions. These factors are
limiting demand for Digital Receipts, while adversely impacting the growth of Digital
Receipts industry.
Digital Receipts Industry Outlook
Product launches, acquisitions and R&D activities are key
strategies adopted by players in the Digital Receipts Market. The top 10
companies in the Digital Receipts market are:
- PayStand
- Square, Inc
- ClassWallet
- Dashlane
- Sensibill
- Cardlay
- Flux
- Finovera
- ReceiptHero
- Appcard
Recent Developments
- In May 2022, Paystand launched an automatic billing and payment services for NetSuite AR to reduce the time taken in cash transaction, eliminate transaction fees and simplify billing. The payment service will help in the submission of minimal deposits, instant cash transfer on sales and auto-payment at shipment. These features will increase the adoption of such services in retail sector.
- In August 2021, Sensibill launched a new credit and financial platform in collaboration with CAARY for small and medium-sized enterprises (SMEs). The collaboration will provide SMEs with a unified, end-to-end financial services solution that covers credit, payment solutions, receipt capture, expenditure management and automated reconciliation. The platform will provide best digital receipt collection capabilities and customized financial advice. It will encourage the use of such platforms and thereby increase the adoption of digital receipts in various industries.
- In April 2021, GPT invested in Cardlay to integrate fast card issuance, automated expense management and digital receipt into a single digitized platform. The cloud architecture will provide scalable real-time card issuance/management and other white label front-end payment services. The platform will provide digital user experience with real-time data and accelerate the use of advanced payment solutions in different organizations.
Relevant Report Titles:
Secure Digital Card Market- Industry Analysis, Market Size,
Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: ESR
0127
Report Code: HCR
1283
Report Code: ESR 0013
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