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The increase in online transactions has directly increased the number of digital payments, presenting an opportunity for disruptive innovation with the potential to drive even more value.
Fremont, CA: E-commerce expansion is sending shockwaves across the retail business, followed by a sonic boom echoing throughout the financial technology (fintech) sector. The increase in online transactions has directly increased the number of digital payments, presenting an opportunity for disruptive innovation with the potential to drive even more value.
The connection between e-commerce and fintech is so strong that the growth engine of many e-commerce enterprises often gets fueled by the financial services they offer. Aside from the standard service fees associated with any payment extension or loan, there is also the stickiness issue to consider. Buyers and sellers are more likely to stick with stores and marketplaces that make it simple to transact and engage on a deeper level. There are also enormous insights to be gained from providing financial services, such as data collecting and trend research, which may improve other services offered by e-commerce companies, such as advertising.
Major ecommerce trends for both buyers and sellers.
• Better payment experiences for buyers
In recent years, most of the focus for e-commerce innovation has been on checkout optimization and eliminating any friction. COVID-19, on the other hand, adds a new dimension with the requirement for additional payment methods. Payment alternatives at checkout include digital wallets, virtual credit and debit cards, and QR codes, and other forms of touchless purchases.
• Buy Now, Pay Later (BNPL)
Buy Now, Pay Later (BNPL) is one of the most recent and significant trends, with worldwide transaction volumes estimated to increase from 285 billion dollars in 2018 to 695 billion dollars by 2025. BNPL alleviates the financial burden that many people endured as a result of the epidemic by establishing a win-win situation for both buyers and sellers. It usually entails a mild credit check, allowing consumers to buy what they need and pay over time without affecting their credit score and allowing sellers to keep inventory moving.