Online shopping is a rapidly growing market, with expectations for worldwide sales from ecommerce to reach $4 trillion in 2020. There have been many new developments in recent years that have made consumers feel more secure about shopping online, including advances in both online shopping methods and payment systems.
Financial technology has played a key role in this, with innovations such as in-app purchasing, mobile payments, e-wallets, new and more secure payment systems, and more convenient ways to pay encouraging shoppers to spend more time online. The infographic attachment introduces some of the most innovative new mobile payment systems to enter the market in recent years.
Razi Salih has a professional history of working with fintech and has established several projects utilising technology within the financial sector. There are still many ways in which it is predicted that payment innovations and fintech will continue to affect ecommerce over the coming months and years.
Payments systems designed for ecommerce are making global payments simpler and more affordable than ever before. The ability to seamlessly make payments that cross international borders opens up a whole new realm of ecommerce that was never previously available.
Since PayPal initially created the first global system that was widely adopted for international payments, there have been many more companies jumping on the bandwagon for international digital money transfer – and, like any technology, the more it advances the cheaper it will become for the end user.
Companies today are no longer solely reliant on providing products and services that appeal to their local community and are able to access an almost limitless customer base by adopting secure global payment systems.
The history of PayPal can be found in the PDF attachment to this post.
Targeting the Unbanked Population
There were approximately two billion adults in the world in 2015 classed as unbanked, meaning they did not have easy access to banking services. Fintech is changing the way banking is done across the world, and one of the key advantages of this is that many people previously unbanked are now finding that they can access online services and change that status.
Financial inclusion is more prominent thanks to the rise in technologies that have made financial services more accessible to everyone, even those in developing nations who have previously found it difficult or impossible to access these types of services.
Unbanked adults can now access all manner of services including mobile payments, digital currencies and peer-to-peer lending, without the requirement for a traditional bank account.
More Mobile Commerce
Mobile commerce, or m-commerce, is also on the rise thanks to advances in financial technology. Fintech has created mobile payment systems that provide the consumer with peace of mind, security, efficiency and convenience, ensuring exponential growth in this area.
Sales made using Visa have grown 53% faster through mobile devices than through desktop computers and innovations such as Samsung Pay and Apple Pay are making mobile payments even faster and easier.
The key things that consumers look for in terms of making payments online include ease of use, efficiency, data security and accessibility. Fintech is continually finding ways to improve services across all these areas, creating a frictionless service that removes many of the previous barriers to success that ecommerce companies were facing.
Consumers prefer it when they can use a single source for multiple services and the more effortless the experience is, the more likely they are to return again and again.
In the short video attachment, you can find out more about the world’s first online payment systems.