With the predictions of online retail sales to hit $4 trillion by the year 2020, the growth in e-commerce industry is propelled by the emerging FinTech companies. The speed and efficiency in e-commerce have been greatly influenced by the emergence of e-commerce platforms like Magento, Shopify etc. and various digital payment platforms. New payment methods based on financial technology like:
- In-app purchasing
- Peer-to-peer payments
FinTech and e-commerce work hand-in-hand. Without financial technology, online sale and purchase of the products and services would not be possible. Here are some of the ways by which the e-commerce companies can leverage the emerging FinTech:
Improved payments options
As discussed earlier, innovations in the FinTech companies have given the customers a variety of options to complete their online purchase virtually from any device in the real-time, sitting anywhere in the world using any currency.
Mobile wallets, POS credit, blockchain, cryptocurrencies etc. are the results of new innovations in the financial sector and have made the process of online payments quicker, easier, and more secure.
Increased online payment security
Regular innovations in the FinTech continue to make strides in making online payments more secure. Biometric technology i.e. the use of fingerprints, voice, facial and retinal authentication has made the online payment process more secure and added to the consumer trust. Customers are much more confident while making online payments whether small or significantly larger amounts these days.
Automated customer services
Chatbots provide the online shoppers and merchants a way to communicate in the real-time. With the advancements, these Chatbots are being personalized to provide individual shopper’s guidance according to their individual personas based upon their behavior.
Before the proliferation of Chatbots, e-commerce companies were relying on manual resources to communicate with their customers which not only was a logistical challenge but was also prone to manual errors. the
Targets the unbanked
FinTech companies accommodate both the banked and unbanked sectors in the world by providing customers with a variety of options to pay for their online purchases. It allows online customers to pay through credit cards and mobile money transfer of the customer is located within the country.
The feature to accept mobile payments include those customers as well who have never held a bank account. These features make the customers of every sector to make online purchases and benefit the e-commerce companies.
Growth of international e-commerce
In the past, the collaboration between the e-commerce companies was hindered greatly due to the finding of secure and global payment solutions. With the advancements in the FinTech sectors, all such hindrances have been worked upon and addressed , the relationship among companies across the countries have improved. This has led to the opening of new revenue channels for existing businesses.
Faster delivery methods
Technology to use drones for delivering the products to customers has been actively worked upon by the engineers. Drone deliveries are still in the testing phase but it is assumed that their inability to hold heavy stuff and travel larger distance will be soon overcome by the technological advancements.
Innovations in the FinTech sector have already improved the e-commerce by making all the processes involved in online purchasing quicker, easier and simpler and have also helped in making it available across the globe. Countries are collaboratively working together to bridge the gap between them and FinTech continues to affect positively the global e-commerce. The innovations made in the FinTech sector holds a great potential in changing the game of the e-commerce companies.