From Click to Pay: E-Commerce in 2024
Over the last four years, the number of transactions in the online channel has moderately captured ground over the total number of card purchases, rising from 17% in 2019 to 19% in 2023.
The volume of e-commerce had been registering growth of more than 25% across the board, proof of how the expansion of internet use was reflected in an increase in online shoppers and illustrated how Spanish society was adopting and normalising this form of consumption.
E-commerce trends
Analysing e-commerce flows, according to data from the CNMC, we can observe softer growth compared to previous years in all areas, with a clear trend among consumers towards purchases abroad. Specifically, trade from Spain with foreign countries has maintained its variation with respect to previous years at around +19% and accounts for more than half of online purchases (57%).
On the other hand, trade from abroad with Spain, after having been the most affected flow during the pandemic, maintains its share at 13% of turnover. Domestic trade in Spain loses traction, being the flow that grew the least (+10%), but maintaining its share compared to the pre-pandemic period.
Overall, online shoppers have increased in recent years, rising from 20.3M in 2019 to 25.9M in 2023. This growth has been driven by increased confidence in online shopping, growing e-commerce adoption and greater choice, according to IAB Spain's Annual Ecommerce Reports 2023
Adding the channel variable to the sectoral analysis reveals two key trends:
- Travel and entertainment" stands out as one of the activities with the highest proportion of card transactions in the e-Commerce channel (26%). In addition, it leads in terms of amount of card payments in e-commerce, with more than 6 billion euros, according to our internal issuance data. In second position is "retail" with 3.264 billion euros and "large companies" with 2.745 billion euros. These sectors manage a high turnover in this channel, given the convenience and security they provide to their users.
- Examining the growth of online commerce, we identify the sectors that have prospered the most in recent years (2023 vs. 2019) in terms of card payment transactions:
- Petrol stations: +1.000%
- Large retailers: +218%
- Supermarkets: +213%
- Hotels :+181%
Two crucial factors have driven this growth. On the one hand, the popularisation of home deliveries in sectors such as supermarkets and restaurants has had a positive impact on the volume of e-commerce handled. On the other hand, the growing use of wallets and QR payments has contributed to the increase in purchases in this channel, even when the customer is present at the time of payment.
In the specific case of petrol stations, in the last four years they have gone from having an e-Commerce share of total card payments of 2% to 14%. One of the main factors that may have contributed to this growth is the popularisation of payment apps such as Waylet, which turn a face-to-face purchase into an online purchase by using them to execute the payment.
E-commerce continues to show sustained growth, albeit more moderate than in previous years. Consumer confidence, the adoption of new payment technologies and the expansion of cross-border shopping continue to be the main drivers of the sector.