A report by IT consultants Datamonitor predicts that by the year 2000, 10.5 million households in Europe will be spending an average of #476 a year over the Internet.
The report goes on to suggest that the European Internet commerce market as a whole will be worth $5 billion (#2.9 billion) by the year 2001 and will outgrow all other delivery channels with a growth rate of 63%. Germany and the UK are both cited as the leaders in on-line shopping activity, followed by France and the Netherlands.
Datamonitor suggests that this growth has the potential to be even greater, with an estimated 27 million households in western Europe on-line and able to conduct transactions over the Internet by the year 2001.
Currently, the Internet commerce market is valued at around #11 million, or just #4.58 per household, with 2.4 million homes in Europe able to transact on-line business. However, as a result of the surge in on-line transactions, the report warns that the banking sector must become more innovative in order to compete with other on-line financial companies and at the same time make a profit from digital cash.
The report suggests that banks will look to the digitalisation of commerce as a way of reducing cash handling costs and increasing the efficiency of existing operations.
To capture this growth, the report urges banks "to target the home as the prime location for conducting on-line transactions. It is imperative that banks pursue aggressive IT strategies targeted at the home, reducing the unfamiliarity of the Internet and encouraging on-line custom."
IT in Digital Payments 1996-2001: the future of Electronic Commerce is available from Datamonitor for u995. Further information on 0171 625 8548.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago