The Rise Of eCommerce And Online Payment Methods
In the 1980s, e-commerce revolutionized the concept of retail, and it has only grown and expanded since then. Then, in 2020, the coronavirus (COVID-19) went global, significantly affecting online business. To their relief, advancements in payment processing are supporting the expansion of digital marketplaces.
E-commerce enterprises can prepare for the future by investing in this technology. In this white paper, we’ll discuss how the spread of the COVID-19 virus has impacted e-commerce and how advances in payment processing have helped businesses better serve their customers.
An Overview of eCommerce
For the sake of brevity, let’s say that “e-commerce” means all commercial transactions that occur via the Internet. When conducting electronic transactions, businesses in the 1960s relied on rudimentary computer networks. The first-ever “Electronic Mall” opened its doors on CompuServe in the 1980s.
These platforms have revolutionized information gathering and consumer-brand interactions. Amazon and eBay are two examples of companies that contributed to the expansion of the e-commerce revolution.
As the concept of digital wallets and later digital currencies took root in the e-commerce world, the options for purchasing necessities and indulgences expanded rapidly over time. Some retailers, including Amazon, have been testing cashless transactions in recent years. Then COVID-19 happened, and the number of online shops increased dramatically, suggesting a radical shift in how we shop.
E-Commerce and the Role of Payment Methods
Since most business deals will be conducted digitally by 2022, developing payment methods is crucial to expanding online shopping. The most up-to-date payment methods facilitate online consumer shopping and reduce friction for business owners.
As electronic payments become increasingly popular, businesses will need to implement the infrastructure and form strategic alliances to accept not only credit card payments but also those made through digital wallets and “buy now, pay later” systems. The use of electronic methods of payment has several positive effects for both the retailer and the buyer.
The Customer Benefits of Payment Technologies
Modernizing a store’s payment systems benefits the store’s bottom line and the buyer’s overall satisfaction. Several customer-oriented benefits of electronic payment systems include:
Increased Speed at the Register
The use of electronic payment systems increases customer convenience. There are various ways for customers to swiftly pay for a company’s goods or services, including “Click to Pay” buttons and digital wallets.
Payment technology can also simplify the buying process by letting customers enter their payment and shipping details only once rather than having to do so for each transaction. Whenever you place an order in the future, you won’t have to manually enter that information because the system will do it for you.
Lower Levels of Social Interaction
People were already seeking ways to avoid interacting with workers before the coronavirus pandemic hit. Customers are seeking even less interaction with staff due to health concerns. With the use of electronic payment technology, online stores can keep their consumers updated on their purchases, balances, and available credit without them having to call during business hours.
More Products Are Available for Purchase Today.
E-commerce enterprises are winning customers’ favor (and loyalty) by accommodating their preference for payment methods such as credit cards, digital wallets, bank transactions, and cryptocurrencies.
Providing customers with various payment methods requires businesses to step up their security precautions. The company can avoid being a hacking target and gain credibility as a safe place to do business by teaming up with a third-party service provider.
The Positive Effects of Electronic Payment Systems on the Retailer
Businesses can boost efficiency and revenue by incorporating online payment systems into their processes. Some advantages that online payment systems provide retailers are as follows.
Allowing for Many Different Types of Payments
Businesses can expand their acceptance of customers’ preferred payment methods by adopting cutting-edge e-payment systems. To name a few examples: plastic money, electronic wallets, and foreign currency
With the help of reliable payment processing services, online retailers can ensure that their customer’s financial data is safe throughout transactions. In addition, many service providers present merchants with tools for early fraud identification and protection.
By accepting various electronic payment methods, businesses have more leeway to implement loyalty programs, price cuts, and other forms of customer appreciation.
Electronic Funds Transfers
E-commerce companies can mitigate some of the human element’s negative impact on efficiency by using modern payment methods. Businesses can save both time and money by automating the payment process for recurring payments like subscription programs.
Latest Trends in E-Commerce
The development of secure online payment methods has been a major factor in expanding online shopping. After all, it would only be able to buy necessities, non-necessities, and luxuries via websites and mobile apps if the checkout process was quick and secure.
Merchants have traditionally placed a premium on customers’ privacy regarding their personal information. The increased demand for online marketplaces and the current rise in the COVID-19 epidemic the importance of robust security measures. During the worldwide epidemic, crimes, including fraud and ID theft, have increased. In 2020, 81% of American businesses were attacked by online payment scammers.
Among the many methods attackers use to obtain credit card details, a common target is the application programming interface (API) that links payment gateways to online shopping carts. As a result, they frequently engage in account takeover activities to begin making purchases on websites under the guise of the legitimate client who created the account with the e-retailer.
To further complicate matters, online retailers must watch out for chargeback fraud, friendly fraud, and false positives. Companies run the danger of having their customers lose faith in them if they don’t take measures to improve the safety of their payment processing systems.
Digital Wallets and Mobile Commerce
People seek the most hassle-free ways to shop as they distance themselves socially. Paysafecard and Click to Pay is a feature offered by Visa, Mastercard, American Express, and Discover that allows customers to pay with a button. Even in the casino industry, CasinoReviewers paysafecard is highly used today.
This Secure Remote Commerce (SRC)-based online checkout makes it possible for customers to buy things with the touch of a button, whether on a desktop computer, a mobile device, or a tablet. And because customers don’t have to submit their banking details at checkout, privacy is preserved.
Another option for satisfying customers’ easy demands is using mobile wallets. They transform the smartphone into a contactless payment device by linking it to the user’s credit, debit, or prepaid card. These mobile wallets are gaining popularity due to their convenience but also because they are incredibly safe.
Modern payment processing technology can safeguard these apps from fraudulent activities. Many shoppers now consider mobile payment systems, such as Apple Pay, as one of the most secure options. According to Speedpay’s poll, 24% of consumers who use mobile wallets do so because they consider it the safest payment method.
Retail Consulting Partners found that 85% of retailers are improving their digital commerce platforms as part of their 2021 POS & Customer Engagement Survey Report. By upgrading their point-of-sale (POS) systems, online merchants hope to serve their customers better and increase sales on their digital platforms. They are searching for POS software that can accommodate various features, including price adjustments, loyalty programs, and omnichannel access.
Similarly, they must ensure that BOPIS and curbside initiatives integrate easily with their infrastructure. In 2021, point-of-sale system upgrades were a top priority for 52% of stores. When it comes to providing a satisfying omnichannel shopping experience, online merchants want payment systems that are as integrated as possible.