The digital payments forum have been growing far and wide, with tech-savvy shoppers opting to shop from the comfort of their homes. Digital payments are driving the e-Commerce ecosystem showing a steady and strong rise. As per Statista, a leading company, the total digital payment amount globally in 2022 was about 8.5 trillion USD. In this amount, almost 5 trillion USD accounted for eCommerce payments. This has led to a major boost in the eCommerce sector and has set a foundation for it to become the new normal.
Why eCommerce is flourishing:
E-commerce payment processing and digital payments go simultaneously. This means that the entire process is streamlined as per the consumer buying pattern and provides them with a more personalized shopping experience. This personalized experience is boosting the eCommerce ecosystem.
- Round-the-clock availability of products and services on multiple eCommerce platforms ensures a steady digital payment mode. This hassle-free experience attracts a lot of customers, vendors and sellers alike in the ecosystem.
- Third-party, non-banking entities and payment portals like Apple Pay, Google Pay, PayPal and Dwolla are getting popularised due to this.
- Buyers can directly link their bank accounts to their system and pay via digital wallets. The entire checkout and payment process is simple and quick, appealing to the crowd.
- ECommerce payment processing is not just simple and quick but also secure. Online transactions via digital wallets are a safe mode of sending money. These exclusive features grow the trust within the crowd popularising the eCommerce sector.
Models that come under the eCommerce Umbrella and Online Payments
B2C means Business to Consumer entities that sell their products directly to customers. Amazon, Walmart, etc., are top B2C brands. These entities include buyers as well as sellers and thus gain a significant chunk of the eCommerce market.
Business to Business entities mainly works with large quantities. Bulk orders are mostly sold or bought within these entities. They focus on brands and, sometimes, consumers as well. Popular B2B brands are Alibaba and Amazon.
C2C are consumer-to-consumer entities, and eBay and Etsy are sites where consumers sell their products to other customers. Small businesses and solo ventures also focus on a C2C approach.
Selling stuff via smartphones or tablets and laptops comes under the M-commerce category. Virtual marketplaces are mostly followers of this model. Customers buy and sell products via wireless devices for this.
Benefits of Global Digital Payments
The benefits of digital payment are wide, and they can be easily segmented as follows:
Easy Mode of Payment
Online shopping via digital wallets or digital transactions saves a lot of time and improves the shopper’s buying experience. A lot of brands have adopted AI-based personalised shopping, and the buyer can customise the settings. This has become a trend among the young crowd and has a major fan base following.
Cutting Edge Technology
Froom discount coupons to referral codes. The eCommerce market is competitive and beneficial, not just for the seller but for the buyer as well. E-commerce payment solutions can range anywhere between digital wallets or third-party gateways like Apply Pay, Google Pay, PayPal, Venmo, Stripe, etc. This competition between the various gateways gives an edge within the ecosystem. The technology is amazing, and you can make a payment of any amount, all from the comfort of your home.
The Buy-Now-Pay-Later platforms, instalments platforms and EPS are affordable and secure modes of payment. This ensures multiple factors like quick buying, seamless transactions and smartphone usage.
No Geographical Boundary
You can shop from international online shopping sites without the boundary of having currency issues. This global ecosystem comprises entrepreneurs, e-commerce giants, and big retail stores. With the use of any currency to buy stuff from any country, your shopping is not limited to just your country. You get exposure to various other brands from other websites from other countries.
Reliable and Secure
If you are paying via digital payment wallets, you do not need to carry cash, reducing the risks of theft and manhandling. All you need is a stable and working internet connection, and you are good to go. Digital payments also reduce and restrict illegal incomes and tax evasion. It improves your credit score as long as you do not have dues which is excellent quality.
E-commerce payment Trends
The explosive growth of the eCommerce ecosystem has contributed a lot to society. With the crowd marly resorting to digital due to necessity, it has slowly shown the world the beauty of technology. You can shop anything, from apparel to electronics, medicine to appliances, all from your small smartphone. Technology has advanced and has come to our doorstep so that we do not need to step out of it. Jupiter’s research has shown that the global e-commerce value will exceed USD 7.5 trillion by 2026. This is a major shift from USD 4.9 trillion, as seen in 2021. The advancement shows almost 55% growth within the next five years, which is magnanimous when you compare the previous decade’s growth rate.
E-commerce Payment System
Digital wallets are growing at a rapid rate, and there is no stopping them. You can shop from the best international online shopping sites from the comfort of your home. Regardless of the country, you can access these shopping sites and portals and shop with your own currency. Just in 2021, the usage of online payments has increased to almost 81%, and that is just in America alone.
Online payments have crossed the boundaries of credit and debit cards. These flexible options offer secure payments and seamless transactions. You can now make online payments via
- Payment apps like PayPal
- Digital Wallets
- Buy Now Pay Later services
- Omnichannel Payments
Now shopping from your favourite international shopping website is not just a dream. With digital wallets bringing the e-commerce ecosystem to your fingertips, it is safe to say that the world is progressing slowly towards a more online and secure payment option.