Advancements in technology have affected every industry globally; whether it is entertainment, I.T., healthcare, telecommunication, e-commerce or any other industry. The innovative solutions provided by these advancements have positively changed the business models and the ways various operations are being conducted within the companies.
Talking about the e-commerce industry, the technological advancements have completely changed the ways e-commerce marketing is done and operations are managed. One of the many changes which have enhanced and made e-commerce businesses’ popular is the advancements made in payment methods. Earlier, it was in thoughts of programmers and quality engineers to create a safe and quick virtual method of payment for making all the payments instantly. But, today, virtual methods of payments have become a favorite of all the customers whether they are shopping online or offline. One of the reasons for the worldwide acceptance of virtual payment method is the possession of smartphones with every person.
FinTech companies and mobile payments have revolutionized the way payments are made in the e-commerce industry. Digital payments methods have gained ground ditching the traditional methods of making payments. Let’s take a look at the modern methods of payments which are the result of the technological advancements:
• Mobile Payments
Of all the new electronic payment methods, mobile payments have gained wide attention of the users globally. Because of security, speed and convenience, mobile payments are an amazing option to make all the payments with just a few clicks. Analysts have predicted the number of transactions using mobile payments will hit the $500 billion mark by 2020, representing a yearly growth rate of around 80% over a 5-year period. These numbers present the popularity of mobile payments.
Amazon-pay, M-Pesa, Google pay, PayPal, Apple pay are a few examples of most used mobile payment methods. There are many companies give a wide range of options to the customers to choose from. All users need to do is, download the company application in their mobile phones, add their payment information and start using the mobile wallet for making transactions. This easy and quick way of making payments anywhere and at any time has appealed the users now for a long time. Another major reason is the security with which this payment method.
• Point of Sale (POS) payments
Point of sale (POS) payment method has been successful in disrupting the way payments are made in the retail industry. According to a recent study, Point of Sale (POS) industry will hit $116 billion mark in the year 2025. Portable Point of Sale (POS) feature enables the user to use their debit cards and credit cards to make the due payments. Technological advancements have also been successful in enabling the developers to create wireless debit and credit cards to use at the Point of Sales (POS) terminals. It requires to just bring the card near the machine to make the payment.
Consumers these days want a safer and quick payment method that enhances their shopping experience and Point of Sale (POS) enables the retailers to fulfill their expectations. This payment method has benefitted the retail store owners in many other ways as well; one is eliminating the need for maintaining cash registers and cash in the retail space. Considering the benefits, many startups have set up digital payment methods like mobile Point of Sale (POS) for making it possible for the customers to pay the due amount using the card, cash or mobile payments. In the near future, it can be expected the integration of cloud solutions with POS systems to further enhance the payment method.
• Online e-commerce payments
Online shopping trend has witnessed significant growth in recent years. Technological advancements have influenced the way payments are made while shopping from e-commerce stores. Unlike, the early years of online shopping where payment process was only Cash on Delivery, today many instant payment options are available for the customers to use.
Due to the hectic life schedule of most of the customers, they want a quick and hassle-free shopping process from the e-commerce stores. Big e-commerce stores like Amazon, Flipkart, Myntra, Jabong, etc. have tied up with banks to provide internet banking as well as with various other payment companies like PayPal, Mobikwik, etc. to provide payment options to the customers. Customers want an easy checkout process without requiring many details to quickly complete the shopping. It is likely expected that more and more e-commerce stores to adopt these payment methods to enhance customer behavior.
These payments methods have completely revolutionized the way consumers make payments online and offline. Let’s take a look at the future of online payments across the globe.
Future of Online Payments
It is sure that the coming future will become more tech-savvy and the advances in technology will affect the payment methods while shopping online. Physical stores will still be as important as they are now but online shopping will gain more popularity. Competition too will increase among e-commerce stores bringing more stress to the store owners. People will become more tech-savvy with the passage of time and will want enhanced shopping experience which is smooth, secure and user-friendly. It can be said that the future will be focusing on making the customers’ shopping experience more user-centric and merchants will integrate new methods to meet the customers’ expectations. The world of virtual payments is expected to become more robust and secure. Alternative payment methods will also evolve with the technological advancements and gain acceptance by maximum online store owners globally. We can expect the shopping experience to enhance to next level in the coming future.
While cash and traditional cards will always remain a viable option for making payments, the technological advancements will popularize alternative payment methods to enhance customers’ shopping experience. So, is your e-commerce store keeping up with the customers’ demands? And, have you planned for enhancing customer experience and, is alternative payment methods included in it? If yes, then it is great news and you will surely stand out among the competitors and if not, then you need to revisit your customer acquisition strategy.