The e-commerce industry is skyrocketing, with online retail sales predicted to hit a whopping $8.1 trillion by 2026. This growth is being powered by the rise of FinTech companies, which are revolutionizing the way we shop and pay for goods and services online. Platforms like Magento and Shopify, WooCommerce, and BigCommerce along with digital payment options like e-wallets, in-app purchasing, and peer-to-peer payments, have greatly impacted the speed and efficiency of e-commerce.
FinTech and e-commerce work hand-in-hand. Without financial technology, online sale and purchase of products and services would not be possible. Here are some of the ways by which e-commerce companies can leverage the emerging FinTech:
Improved Payment Options
In recent years, FinTech companies have revolutionized the way consumers make online purchases. With the introduction of innovative payment options, customers can now complete transactions virtually on any device, from anywhere in the world, using any currency.
Mobile wallets, POS credit, blockchain technology, and cryptocurrencies are just a few examples of the new payment options that have emerged in the financial sector. These advancements have made the process of online payments faster, more convenient, and more secure for consumers.
Mobile wallets, for instance, allow users to store their payment information securely on their mobile devices and make purchases with just a few taps. POS credit, on the other hand, allows customers to finance their purchases at the point of sale, often with attractive interest rates and repayment terms. The emergence of blockchain technology and cryptocurrencies has also enabled faster, more secure, and more transparent transactions.
Overall, the increased availability of these new payment options has provided consumers with greater flexibility and convenience when making online purchases, while also improving the security and efficiency of the payment process.
Increased online payment security
The rapidly evolving world of FinTech continues to lead the charge in improving the security of online payment systems. With the advent of biometric technology, which includes fingerprint, voice, facial, and retinal authentication, the process of making online payments has become more secure than ever before. As a result, customers are now much more confident in their ability to make secure online payments, regardless of whether they are making small or significantly larger transactions.
The use of biometric authentication adds an extra layer of security to the online payment process, reducing the risk of fraudulent transactions and ensuring that the customer’s sensitive financial information remains safe. By using biometric markers unique to each individual, FinTech companies are able to verify the identity of the person making the payment, thus reducing the risk of identity theft and other types of fraud.
In addition to improving security, the use of biometric authentication has also contributed to an increase in customer trust. With the assurance that their payment information is protected by the latest in cutting-edge technology, consumers are now more willing than ever to use online payment systems for both small and large transactions.
Overall, the use of biometric technology in online payment systems is a major step forward in the evolution of FinTech, helping to ensure that the online payment process is secure, efficient, and reliable.
Automated customer services
Automated customer service solutions, such as chatbots, are transforming the way online shoppers and merchants communicate in real-time. With recent advancements in chatbot technology, these tools are becoming increasingly personalized and can provide tailored guidance to individual shoppers based on their unique behaviors and preferences.
Before the widespread adoption of chatbots, e-commerce companies relied on manual resources to communicate with their customers, which often presented logistical challenges and was prone to human errors. However, with the introduction of chatbots, e-commerce companies can provide instant, automated support to their customers, which not only improves the customer experience but also reduces the workload on support staff.
Chatbots can be programmed to provide personalized recommendations, answer frequently asked questions, resolve common issues, and even assist with the checkout process. This level of automation not only saves time and resources for businesses but also ensures that customers receive consistent, accurate support every time.
Overall, the automation of customer service through chatbots is transforming the e-commerce landscape, providing a more efficient, personalized, and consistent experience for both merchants and customers.
Targets the unbanked
One of the most significant benefits of FinTech companies is their ability to accommodate both banked and unbanked customers worldwide, providing a wide range of payment options for online purchases. This allows customers to pay using various methods, including credit cards and mobile money transfers, regardless of their location within the country.
Perhaps most importantly, FinTech companies have enabled the acceptance of mobile payments, which includes customers who have never held a bank account. This feature has made it possible for individuals who were previously excluded from online purchases due to a lack of banking access to participate in the digital economy.
These inclusive features have opened up new opportunities for e-commerce companies to expand their customer base and reach previously untapped markets. By offering a diverse range of payment options, e-commerce businesses can cater to a broader audience and generate more revenue.
Moreover, targeting the unbanked sector not only benefits customers but also contributes to the growth of the economy. By providing access to digital financial services, FinTech companies are promoting financial inclusion, which is critical for sustainable economic development.
Overall, FinTech’s focus on including unbanked customers through innovative payment options is a significant step towards creating a more accessible and inclusive digital economy that benefits everyone.
Growth of international e-commerce
The growth of international e-commerce has been significantly hindered in the past due to the challenges of finding secure and global payment solutions. However, with the recent advancements in the FinTech sector, these challenges have been addressed, and the collaboration between e-commerce companies across different countries has greatly improved.
The ability to securely process transactions in different currencies and payment methods has opened up new revenue channels for existing businesses. Moreover, the growth of international e-commerce has created new opportunities for businesses to expand their customer base beyond their domestic market and reach a global audience.
Furthermore, FinTech innovations have enabled cross-border transactions to be faster and more cost-effective than ever before. With the integration of blockchain technology and cryptocurrency, businesses can conduct transactions securely and efficiently without the need for intermediaries, such as banks.
Overall, the growth of international e-commerce has become increasingly accessible and streamlined thanks to the recent advancements in FinTech. The ability to transact securely and efficiently with customers worldwide has opened up new opportunities for businesses and has created a more connected and accessible global economy.
Faster delivery methods
The possibility of using drones to deliver products to customers has been actively researched by engineers, offering a new and innovative method for faster delivery. While drone deliveries are still in the testing phase, it is anticipated that technological advancements will soon overcome their limitations in terms of payload capacity and travel distance.
Once fully operational, drone deliveries could significantly reduce delivery times and improve the overall customer experience. Furthermore, they could help address logistical challenges in hard-to-reach areas and provide access to customers who may have previously been excluded due to geographic limitations.
In addition to drones, other technological advancements have also contributed to faster and more efficient delivery methods. For example, the use of robotics and automation in warehouses has improved order processing times and reduced the likelihood of errors or delays. Moreover, the use of data analytics and predictive modeling has enabled businesses to optimize their supply chain management and improve delivery times.
Overall, the constant advancements in technology have paved the way for faster and more efficient delivery methods, opening up new opportunities for businesses to improve their operations and customer experience. As these technologies continue to evolve, we can expect even more innovative solutions to emerging, further improving the delivery experience for customers.
FinTech and other technological innovations are transforming the future of e-commerce in exciting and profound ways. From making it easier for consumers to make purchases, to providing businesses with new opportunities to reach customers, these advancements are shaping the future of e-commerce in ways that will benefit everyone involved. Whether you are a consumer or a business, the future of e-commerce is looking bright, and it is clear that technology will continue to play a major role in shaping its future.
At Sigma Infosolutions, with our proven FinTech expertise across 100+ projects and 500K+ person-hours, we have been a trusted TECH partner for over 17 years in the IT services industry. To learn more about our services and offerings and get the acceleration your FinTech business needs, please do connect with us.