PayU GPO has estimated that Romania could soon have the second biggest e-commerce market in Central and Eastern Europe, driven by a surge in the sale of online products and services in 2024.
Based on its own data, in additon to that reported by McKinsey and Statista, the payment provider said it expects the value of the e-commerce market to reach approximately 11.5 billion euros in 2024, potentially overtaking Czech Republic which had a market value of USD 13 billion in 2023.
Last year, Romania ranked third in e-Commerce in Central and Eastern Europe behind Czech Republic and Poland who topped the list with a market estimated at USD 27.8 billion. Hungary and Bulgaria were well behind with a total market value of USD 6 billion.
According to PayU forecasts, payments with a saved card (Google Pay, Apple Pay and other digital wallets) will maintain its steady growth of 15%-20% but this year will definitely see a rise in the use of Account-to-Account payment methods, such as Open Banking or Instant Payments. At the same time, payment in installments such as BNPL and Slice will have an increasing degree of online penetration, the firm said.
The local e-commerce market in Romania currently represents 11% of total retail, compared to Poland 7%, the Czech Republic 14%, Hungary 10% and Bulgaria 7%.
“The growth forecast for 2024 can be supported by merchants by optimising aspects such as offering an omnichannel experience through their own mobile applications, but also by integrating technologies such as RPA and AI both to ensure a personalised experience for consumers and to make good and fast business decisions,” Elena Gheorghe, PayU GPO Romania Country Manager.
“We recommend merchants to have a simple check-out process, clear terms and conditions regarding delivery, return, refund and the payment methods listed on the front page. Obviously, they should offer payment methods that help them increase their conversion rate, such as pre-saved card payment and installment payment, as the latter can generate up to 30% more revenue and has an average value 3 times higher than instant payment,” she added.
……….
Subscribe to the Seamless Xtra weekly NEWSLETTER
See our latest daily updates on LinkedIn
Photo by Firmbee.com via Unsplash
……….
