The world of online retailing is constantly evolving, with new models and approaches emerging all the time. It's an exciting space to watch and in this article, we look at the fastest growing online commerce sector, q-commerce.

At EDC we size e-commerce as any commercial transaction conducted electronically over the internet, while m-commerce is a subset of e-commerce specifically using mobile devices like smartphones and tablets. Essentially, all m-commerce is e-commerce, but not all e-commerce is m-commerce. Recently we have seen the emergence of c-commerce, or Conversational commerce which involves using chat, messaging apps, or voice assistants to facilitate online shopping. Conversational commerce about making the shopping experience more interactive and personalized through conversations. You can ask Alexa to add items to your shopping list, reorder products, or even complete purchases using voice commands. This is a direct form of conversational commerce.

S-commerce is the practice of using social media platforms to promote and sell products or services. It's more than just social media marketing; it's about creating a seamless shopping experience within the social media platform itself. Think of it as turning social media, such as Instagram, Facebook, and Tik Tok, into a storefront.

Just for completeness, there is u-commerce, which some payment service providers call unified commerce or omnichannel commerce. Unified commerce is a merchant strategy focused on creating a seamless and consistent customer experience across all touchpoints, both online and offline. Buy online and collect in-store (i.e. Click&Collect) is one common example used by most fashion retailers. It's about breaking down the silos between different sales channels and creating a single, unified view of the customer. We can see many retailers, such as Apple, Waitrose, Decathlon, Nike, Adidas, Sephora, Nordstrom, Ikea, Home Depot and many others are building or enhancing their unified commerce strategies. Hotels, and restaurant chains are also catching up to the retailers and are thinking more strategically about their customer journeys whether it is online or offline (in-store).  

This leaves us with q-commerce.  Q-commerce, or quick commerce, focuses on rapid delivery of goods, often within an hour or even less. It emphasizes speed and convenience, catering to immediate consumer needs and impulse purchases. Think of it as "on-demand" delivery for everyday essentials, groceries, restaurant meals, or even forgotten items. It relies heavily on localized fulfilment centres, dark warehouses (operating with minimal to no human involvement) and efficient logistics to achieve ultra-fast delivery times. Q-commerce typically offers delivery times within 10 to 30 minutes of placing an order and commonly involves small-value ($20 to $30 USD). This means payment methods need to be optimized for these types of transactions, minimizing fees and making it easy to make repeated purchases. The fast-paced nature of q-commerce might create opportunities for innovative payment models, such as subscription services for frequently purchased items or even micro-payments.

Q-commerce puts a premium on speed, convenience, and mobile-first payment experiences. Payment providers that can cater to these needs will be best positioned to succeed in this rapidly growing market. Like m-commerce, q-commerce is a subset of e-commerce. At EDC we have seen the size of global e-commerce sales range roughly $5 trillion to $6 trillion USD for 2024. Q-commerce is a relatively new segment compared to overall e-commerce, but it's growing at an incredibly fast pace. Globally, q-commerce sales could be as much as $100 billion (EDC estimate for 2024). The average global growth of q-commerce is estimated to be 16% CAGR over 2025-2029 whereas MENA and China are exceeding that average by as much as 12% to 14%.

Urban areas with dense populations and high mobile penetration are ideal environments for q-commerce to succeed. Factors such as traffic congestion, the need for convenience, and a growing preference for digital solutions make q-commerce platforms indispensable for city dwellers. Furthermore, there has been a cultural shift towards instant gratification that aligns perfectly with the promise of ultra-fast delivery. Sometimes within 10 to 15 minutes from the purchase completion to a knock at the door. Real-time updates on order status, delivery time, and tracking information keep customers informed and satisfied.

With the emphasis on speed and mobile, security becomes even more important. Q-commerce platforms need robust fraud prevention measures to protect both the consumer’s payment and the businesses it serves. Account to Account (A2A) instant bank transfer payments will be the typical digital payment method for q-commerce as they continue to challenge the international brands such as Visa, Mastercard, Discover and AMEX. With A2A open banking payments, merchants can enjoy lower fees and instant settlements with real-time updates which perfectly meets the needs of q-commerce.  

Quick commerce is here and there’s no turning back. In many ways, it is perfectly suited for the digital-on-demand age. By adopting q-commerce, businesses can gain a competitive edge, enhance customer satisfaction, and drive operational efficiency. Integrating payment acceptance technologies and processing optimisation practices ensures that companies remain agile and future-proof in a rapidly evolving e-commerce market. With EDC, q-commerce can seamlessly be integrated into your operation and maintain a competitive advantage in e-commerce.

The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).