E-commerce is rapidly growing worldwide. This is partly attributable to the development of financial technology (FinTech) tools. They include e-wallet, in-app purchasing, peer-to-peer lending, and even new payment options like Facebook Cash and Venmo. In addition, the consumers are increasingly confident and comfortable in using the online payment method, thanks to Payment Innovation Trends, which lead to enhanced security and efficiency.
As such, e-commerce market will also grow along with the growth of online payment methods. A number of payment innovation trends make the digital payment system much easier and seamless. As a result, online payments become more interesting among consumers as well as business.
How Payment Innovation Trends Influences E-Commerce Market
The following are three payment innovation trends, which are expected to drive and influence the e-commerce market, as suggested by Joa Wertz, a Forbes contributor:
Enhanced Global Opportunities
The most important benefits of online payment methods is that they allow seamless payment process, regardless of the geographical borders and different time zones. Pioneered by PayPal, the new payment systems provide e-commerce with more opportunities. They can cater customers from different countries and even different continents.
Now, global transactions become easier, thanks to the coming of new global payment options. They include Transfergo, Western Union, or Transferwise, which enter a new ‘domain’ in online payment system. They serve digital money transfer. In other words, e-commerce businesses no longer rely upon local market to grow their businesses.
Addressing the Issues of Financial Inclusion
There are still many unbanked regions in the world. People in these areas hardly have access to banking services. The FinTech benefits these regions, since it offers secured space for people in under-served areas to store money. The pioneers in this business include Kenya-based M-Pesa. The company allows the customers to make daily purchases and even deposit money in their digital account. In other worlds, people who were previously unprivileged from the formal financial services like bank, are now served by the app.
Growth of M-Commerce
E-commerce industry is now shifting to mobile e-commerce. A number of innovations have been around, including Samsung Pay or Apple Pay. The consumers can may payment easily and safely by using mobile devices, thanks to debugging services. For instance, the cases of “cart abandonment” while making mobile purchase have decreased significantly. As a result, e-commerce shops enjoy more sales as complaints reduce.
The payment system can determine whether a consumer will checkout the orders and proceed to payment. FinTech has opened up new opportunities and built up new level of confidence and convenience in online payment system.
Enhanced Efficiency and Accessibility
FinTech grows fast since advances in software and technology are maintained. The consumers enjoy more efficient, cost-effective, and streamlined services from time to time. Thanks to increasing competition, e-commerce businesses now can get financial software packages, which include additional services.
Seamless payment services mean much for e-commerce businesses. They can provide the customers with better experiences. As a result, complaints are reduced and satisfaction level increases. These will in turn translate to more sales, repeated sales, and improved business image, as well as effective branding.