Online retail won’t go back to slower pre-pandemic growth says Mastercard CEO

Online shopping is due to continue accelerating at greater speeds after the pandemic is over, according to Mastercard’s chief executive Michael Miebach.

Speaking to a virtual panel at CES yesterday, Miebach said that months of lockdowns had forced customers to get used to making repetitive purchases of everyday items online, meaning they are far more likely to continue to do so in future.

Online shopping, according to Meibach, increased around 20 per cent in 2020 and is unlikely to go back to the slower growth rates seen before the pandemic.

Furthermore, the shift online means that ecommerce giants have even more data to work with, allowing them to further develop techniques to keep customers coming back to their websites.

READ MORE: Online retail sales accounted for nearly half of all spend in December

The pandemic has also encouraged retailers to try new solutions at a much faster rate than normal, after being forced to introduce services that both protect customers and allow them to keep shopping during the pandemic.

Earlier this week data from Barclaycard, another leading payments provider, revealed that ecommerce sales jumped 52.2 per cent in December accounting for a whopping 46.8 per cent of all retail spend.

Supermarket shopping continued to be the most resilient sector throughout the month as shoppers stocked up on food ahead of Christmas and New Year Eve celebrations.

Physical supermarket shopping jumped 14.7 per cent, but this was eclipsed by an 88 per cent rise in online grocery spend.

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