You must have read tons of posts talking about how the COVID pandemic has brought the biggest transformation in the eCommerce world. The e-commerce industry was already flourishing before the pandemic, but online shopping and digital marketing gained immense popularity lately and so did Fintech, as more and more financial service providers embraced digitization.
In this post, we will explore a few popular Fintech trends that are likely to reshape eCommerce.
- Software-based Transactions
We have seen how the world has accepted digitization after the COVID pandemic. So, it goes without saying that we will need software-based payment solutions to ensure smooth and fast online transactions. With the demand for eCommerce shopping on the rise, people are looking for smarter and reliable payment solutions.
Software-based payment has become a new standard. Not only has it opened up multiple payment options for customers, but it has made eCommerce a flexible and safer industry.
- Cross-Border Shopping
Digitization has made cross-border marketing a cakewalk for businesses of all sizes and nature. Whether it is a startup or a multi-national firm, it is now possible for companies to get their business on a global level. However, the competition is fierce. To keep your company up and running in such a competitive business model, you need to localize your eCommerce store for your international audience.
Customers want the same level of convenience, budget, and shopping experience from international companies as local brands. Before a merchant enters the new market segment, they need to evaluate the payment data, shipping, and other cross-border marketing techniques to ensure maximum conversions. In addition, the eCommerce sites need to be optimized for mobile users and international audiences.
- Automated Payments
The world has already embraced digitized payments. Even those who never used digital payment methods find these contactless e-wallet payment systems reliable and a much better alternative to paper notes. So, what else is left now that people have accepted digital cards, e-wallets, other forms of digital payments? The answer is “automation”. Cash flow is one of the most crucial elements of an online or land-based business. In fact, most businesses fail because of the lack of proper cash flow or improper management of cash and expenses. A report published by Economic Tracker shows that 33.6% of American businesses failed in 2020. A lot of such cases have been reported due to poor cash flow.
Automated invoices offer great relief to businesses that struggle with cash flow management. As the name implies, these invoices are generated and sent automatically to the customers. Automated payments can at least help startups and small businesses in keeping their doors open. Besides, automated payments reduce the risk of errors in invoicing. For those who still rely on manual fax or email invoices, it is high time you embraced this change.
- Buy Now Pay Later Will Become a New Normal
Another trend in the Fintech industry that might reshape the eCommerce sector in 2022 is the “Buy Now, Pay Later” service. You must have come across the retail stores that offer buy now and pay in installments offer. Whether it is a $1000 wedding outfit or a $30 flats, businesses of all sizes have enabled payment in installments for customers.
Those who have embraced this trend have noticed a sudden increase in their sales and higher revenues, after all, who doesn’t like “buy now and pay later plans”. Add to this the 0% APR and a payment spread over 4-5 months, and you have given your customers the best offer.
- FinTech is Everywhere
Gone are the days when FinTech was limited to online banking. The industry is witnessing a rapid evolution lately. From social media to e-wallets, finance has incorporated itself into many tech platforms. The popularity of the technology is at a point where established companies have started investing in fintech to ensure a secure and fast exchange of assets.
People are eagerly waiting for the time when Fintech will allow people to use the eCommerce world without a bank account. Earlier, people needed a bank account for credit payments and online shopping.
Now, you only need a mobile device account to execute eCommerce shopping flawlessly. It is a lot easier to have a mobile device account than to open a new bank account for customers. The technology has already garnered a lot of attention in Africa where hundreds of thousands of transactions are processed using mobile credits. There is absolutely no need for people to link a bank account to the payment apps to process online transactions.
- Competition in the Payment Processing Industry is Fierce
Do you remember the time when PayPal was the market leader when it came to international transactions? However, FinTech has introduced a plethora of innovative and better alternatives to PayPal. You no longer need to spend a certain percentage of your transaction on payment processing fees, and neither do you need to wait for 3-5 business days to get the money on your account. Increased competition means the payment processors are revisiting their policies and introducing changes to their fee structure and payment processing time to retain their customers. This competition is quite beneficial for customers as they have plenty of payment options available at their disposal.
- Automation in Customer Services
In addition to invoicing, automation is expected in the customer service sector in 2022. Chatbots are not new, but they have witnessed many transformations since their inception. These chatbots offer personalized services to each prospect visiting your eCommerce store. They offer great support to customers by guiding them throughout the sales funnel. Before chatbots, businesses relied on manual assistants. Not only did it lead to slower response time, but these services were highly prone to manual errors.
The Fintech trends are expected to have a significant impact on the eCommerce industry. In fact, if everything goes according to the prediction, this industry will reshape eCommerce completely. So, these were the Fintech trends that have the power to reshape the eCommerce world.