Over the last few years, there has been a rising trend in ecommerce and online stores. However, the events of the last year have acted as a catalyst for driving the growth of ecommerce.
According to McKinsey, consumers spent 30% more on online purchases during the first six months of 2020.
A recent eMarketer’s 2020 report stated that: “due to COVID-19, ecommerce will increase to 16% of all sales globally, which is an increase from the previous years.”
In response to this, online payment systems have had to undergo a digital transformation, and many businesses are looking for new and improved payment solutions.
With this rise in ecommerce, it’s important to understand the trends and things you should look out for when it comes to the payment platform that you use for your ecommerce needs.
Why is it important to understand ecommerce payment trends?
There is a massive opportunity for growth in the world of online trading. Though, the world of ecommerce is becoming increasingly competitive, and a smooth payment process can make or break your sale.
According to a study by Accenture, 87% of online shoppers will abandon their carts if a checkout process is too complex or complicated.
Consumers want simple and frictionless processes, and as an ecommerce provider you need to provide them with this in order to take advantage of the spike in online shopping.
The 2021 ecommerce payment trends that you need to know about
We know why the trends are important, but what exactly are the trends this year and going forward?
Here are some of the most notable trends that your business needs to be aware of:
- Omnichannel payment solutions are more important than ever
- Global ecommerce is on the rise
- Increase in mobile phone payments
- A need for an embedded payment process
Let’s explore each of these in a little more detail:
Omnichannel payment solutions are more important than ever
The COVID-19 pandemic has acted as a catalyst, with IBM suggesting that the: “pandemic has accelerated the shift away from physical stores to digital shopping by roughly five years.”
While the shift towards omnichannel shopping had already begun, the pandemic has forced retailers to move at a much faster rate and pushed businesses to quickly expand the need for omnichannel commerce.
Due to this, retail businesses are having to invest in payment solutions that offer a unified omnichannel experience.
This ensures that your customers have a consistent payment solution across multiple shopping channels, and it allows them to shop and pay in a way that best suits them.
The solution: You need an all-inclusive payment solution that can support your business across multiple channels including online and in-store so that your customers can choose the one that suits them best.
Global ecommerce is on the rise
Online retail does not have the same restrictions that traditional retail faces. There are no opening or closing times, no staffing requirements or days off. You can be in your house in your pyjamas and shopping for goods halfway across the world without any difficulty.
A study by Whistl suggests that around 15% of shoppers make an online purchase from an overseas retailer at least once a week.
This presents a huge opportunity for ecommerce businesses and it also highlights the need for a seamless payment process, regardless of the location of the buyer.
The solution: use an ecommerce payment solution that seamlessly accepts international payments, and makes instant pay-outs to help with business cash flow.
Increase in mobile phone payments
One of the most notable payment trends in 2021, is the increased use of mobile phones worldwide.
The increase in mobile phone usage has also in part driven the rise of online sales, as people use their mobile phones to research before making a purchase.
However, desktop website visits still result in higher conversion rates.
This highlights the need to improve the ecommerce experience for mobile phone customers, which is a huge trend that businesses need to take advantage of.
Not only do you need to make sure that your websites are optimised for use in general, but you also need to make sure that your payment process is optimised for mobile checkout.
This will make your online checkout easier, and more accessible for a larger global audience.
The solution: use an online payment solution that is optimised for mobile phone use and check-out.
A need for embedded payment process
The final trend is the need for the integration of seamless payment solutions so that it isn’t a sticking point in the check-out process.
Google Pay says that: “when a consumer makes a purchase, they no longer expect the payment to be a separate action, but rather deeply embedded in the experience.”
Fintech can be used behind the scenes in order to deliver a seamless payment experience.
There is an opportunity for online retailers to improve the buyer experience via a one-click payment option. According to a study by Assist, online stores can increase their turnover by 20% by introducing a one-click payment option for their customers.
The solution: use an ecommerce payment solution that embeds the payment into the buying process seamlessly and gives the customer multiple payment options for a smooth transaction.
What is the best payment solution for your ecommerce website?
While driven by a seismic global event, it’s likely that these new ecommerce payment trends are here to stay. And if businesses want to continue to grow, they will need to adapt their online platforms around these trends.
One of the things that you will need to consider is what payment solution you use for ecommerce, and whether it is the best option for your business.
So, what is the best option?
The best payment platform will depend on your exact business. However, you’ll likely need an online payment solution that can adapt to the current – and future – trends and challenges facing ecommerce businesses.
PayPugs offers an all in one payment solution that can be used for your ecommerce business. Plus, it overcomes the challenges facing many online payment platforms, and easily integrates to offer solutions for the current trends.
The reason why PayPugs is great for any ecommerce business is that it’s not just an online payment solution, but a business banking partner—offering a personal service.
Ready to get started with PayPugs?
Need help understanding how to choose the best payment solution for your retail business?
To find out more about how PayPugs can help you easily set up ecommerce payments take a look at our website.