33 per cent of online spending will be cross-border in five years time, according to a new study from Juniper Research.

The report predicts that by 2028, the cross-border e-commerce market will grow by 107 per cent, from $1.6 trillion in 2023 to over $3.3 trillion.

Over the same period, domestic e-commerce transaction values are expected to grow by 48 per cent.

Juniper Research said that this demonstrates that much of the growth in the e-commerce payments market is in the cross-border area, driven largely by the rapid expansion of key marketplaces and how they have differentiated themselves.

The research firm pointed to JD.com's ability to provide fast delivery times because of its strong logistics network and AliExpress for its offering of "considerably cheaper goods" that offset longer delivery times.

“With disposable income rising in developing markets, e-commerce merchants and marketplaces are pivoting towards them,” said Juniper Research. “Given the prevalence of alternative payment methods in developing markets, such as mobile money, cross-border merchants must effectively match consumers’ payment preferences, or they will quickly lose out to better-localised rivals.”

The research also suggested that in an increasingly social media-dominated advertising landscape, the leading vendors are effectively "marketing directly to consumers", adding that a key method of competing with domestic merchants is appealing to digitally engaged users in a "direct way".

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