TECHNOLOGY
The future of eCommerce is here , and it ' s thanks to fintech , from the rise of chat commerce and mobile payments to QR codes and data-focused solutions
T he eCommerce revolution is in full swing , and there ' s no turning back . Brick and mortar stores have been closing at an alarming rate over the past decade , while online sales continue to surge .
According to
Statistica , worldwide eCommerce purchases will reach US $ 5.4tr in 2022 . So what is driving this significant shift ? A big part of it is the rise of fintech , the fusion of financial services and technology . This feature article explores the fintech eCommerce revolution in detail , including some of the key technologies and trends in play .
FINTECH TRENDS IN ECOMMERCE
BNPL One of the most recent fintech trends to hit the eCommerce space in recent years is BNPL , or buy now pay later . This involves a merchant extending credit to a customer , who then has a set time to repay the debt . " Now the eCommerce companies also give the option to pay in instalments . This policy helps them to attract more customers ," said Christian Velitchkov , Co-Founder at Twiz LLC . " This payment type is usually preferred for large purchases ."
BNPL is also a good way of providing financial inclusion to those who may not have access to traditional credit products .
Furthermore , it gives buyers a sense of flexibility and control over their spending .
" Increased offerings of ' try before you buy ' and ' buy now , pay later ' will continue to pay dividends for eCommerce companies that invest in them ," said Gregory Zakowicz , Senior Ecommerce Expert at Omnisend . " These offerings give consumers increased trust in doing business with brands ."
Mobile payments Another key trend in fintech eCommerce is the rise of mobile payments . This trend involves customers making payments using their smartphones or other mobile devices .
One of the advantages of mobile payments is that they are convenient and fast . Customers can simply scan a QR code to make a payment without entering any details such as card numbers or addresses .
For example , there has been a tremendous increase in mobile payments usage in Brazil , accounting for 8 % of all e-commerce transactions based on research by
JP Morgan . This fact is primarily due to the widespread adoption of smartphones and the growth of fintech in the country .
“ Ecommerce is explodin ”