How Advancement of Payment Methods Helped E-Commerce to Evolve

How Advancement of Payment Methods Helped E-Commerce to Evolve

By: Retail CIO Outlook | Tuesday, November 19, 2019

The increasing growth is being observed in e-commerce, as the global sale is expected to be $4 trillion in 2020. To some extent, the evolution can be credited to the development in financial technology (fintech) like e-wallets, in-app purchasing, and new payment options. 

FREMONT, CA: Online shopping and online payment systems have become more accessible and frictionless because of Fintech and payment innovations. Nowadays, consumers and businesses are more attracted towards payment system because of its security and efficiency.  

Here are a few popular fintech trends that are assisting the e-commerce industry is evolving.

High Global Possibilities

The key advantage of the new innovative payment system is that it can be easily used across borders. The first large organization that assisted the PayPal was the first large organization that helped the e-commerce to serve their new client bases was PayPal. The company started offering the option of global transactions, among the other payment supplier like Transfergo, Western Union, and Transferwise, for entering in the game of digital money-transfer. Furthermore, fintech proves to be beneficial for the emerging market by offering a safe place to keep the money for individuals who cannot have access to the banks.

The Growth of M-Commerce

Mobile app payments are not a new concept, but its demand is increasing rapidly. After comparing with the sales made on a desktop, it has been seen that Sales of Visa through mobile has grown 53% faster. The rapid growth has opened the door for e-commerce businesses as they can go mobile with innovations such as Samsung Pay and Apple Pay, which permits the customers to purchase safely, efficiently, and quickly. As the process of payment becomes smooth and easy the chances of a customer abandoning their cart has also reduced helping the e-commerce shops to make more money. 

Frictionless Experience Through Increased Cost Saving, Accessibility, and Efficiency

The continuous advancement in the software and chip technology along with the increase in competition, businesses can now purchase financial software packages having services that could have been costly. Fintech is helping e-commerce companies to flourish in the long run by escalating their efficiency and accessibility.

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