Over the past 2 years, we have seen an enormous amount of development in the payment sector. This has granted a strong boost to e-commerce payments but also new innovative ways to enhance customer checkouts on the ground.
Buy Now Pay Later (BNPL) has grown in popularity across the US and is making headway into the EU and other Western countries. This has recently become a $100b industry and will continue to grow as millions of shoppers across the world now use BNPL to finance their purchases.
This type of financing is a point-of-sale loan which lets shoppers pay for their items over a period of installments. This has been a big influence in online sales too where retailers are incentivised to offer this checkout capability to increase their conversion rates.
The advantage for shoppers is that it often enables them to buy a more expensive item.
Mobile Payments are not likely to slow down anytime soon
The increasing penetration of smartphones and high-speed internet has helped this payment method rocket, in combination with COVID 19. This sector can be classified into a few different categories, namely;
1) Mobile Wallet Payments
2) Apple Pay/Samsung Pay/Google Pay
3) QR code as a payment method
4) Cryptocurrency (blockchain wallet)
Mobile Commerce is expected to hold 80% of e-commerce transactional value by 2025. Looking at the UK, more than 50% of revenue of online shopping businesses was generated through mobile devices in 2020. We can expect this similar trend to follow in other markets as well as more payment methods needing to be offered by retailers to meet their payment needs.
In the developing markets, E-commerce and digital services continue to grow. Convenience and safety are likely to be the main questions asked by consumers who have not shopped online before. Their experiences will need to be positive for them to continue using the online channel. With the increase and adoption of the smartphone, we are seeing the transition slowly starting to take place.
As mobile phones are becoming the point of reference in the growing digital world, SoftPOS/ TapOnPhone technology is the latest addition and is predicted to grow rapidly amongst retailers and consumers.
Retailers may now simply accept payments through their smartphone by downloading an App. Customers will still be able to pay through their mobile wallets or physical contactless card.
In the e-commerce space, we expect 2022 will be the year of piloting the ability for a customer to make a purchase by simply tapping their card to their mobile device to complete an online purchase. This provides for greater security and convenience, where now a customer will never have to input their card details online.
WIZZIT Digital provides this technology with PIN entry and will be piloting the e-commerce solution soon. Please get in touch for more detail.