How is Payment Innovation Helping E-Commerce Evolve?

By CIOReview | Tuesday, November 12, 2019

Rapid growth is noticed in e-commerce, with the global sale anticipated to be $4 trillion in 2020. This evolution can be, to some extent, credited to the development in financial technology (fintech) like e-wallets, in-app purchasing, new payment options, and peer-to-peer lending and payments. 

Fremont, CA: Fintech and payment innovations are the reasons behind online shopping and online payment systems becoming more accessible and frictionless. Payment systems have resulted in being attractive for consumers and businesses due to its security and efficiency.

Some of the most popular fintech trends that are helping the e-commerce industry evolve are listed below.

High Global Possibilities

The essential benefit of new payment innovations is that it can be seamlessly made across borders. PayPal was the first large organization that helped the e-commerce to cater to new client bases by offering the possibility of global transactions, among all sorts of payment providers like Transfergo, Transferwise, and even Western Union to get in the game of digital money-transfer. Additionally, fintech benefits the emerging markets by providing a secure place to keep the money for individuals who cannot access banks easily.

The Growth of M-Commerce

Mobile app payments are not new. However, they are now growing at a fast pace. Sale of Visa via mobile has grown 53% faster compared to the sales made on a desktop computer. This opens the door for e-commerce businesses to go mobile with innovations like Samsung Pay and Apple Pay, which allows users to purchase safely, quickly, and efficiently. With the payment becoming smooth and seamless, the possibility of customer “cart abandonment” has considerably reduced, and e-commerce shops are making more money. 

Frictionless Experience Through Increased Cost Saving, Accessibility, and Efficiency

With continued advances in software and chip technology coupled with the spike in competition, businesses can buy financial software packages having services that could have otherwise cost far more. Fintech is helping e-commerce companies thrive in the long run by increasing efficiency and accessibility. 

Check out: Top Payment and Card Consulting Companies