Payment options have been evolving for ages, and with the development of technology, it has been growing even faster. What we have available now – mobile payments, e-commerce, online payments, and shopping at the click of a mouse – is all a result of that. Technology keeps advancing forward, and all of these changes are affecting global e-commerce and the way it works.
It promotes collaboration between countries
Since markets in countries all around the world vary so much, e-commerce companies have to collaborate with payment solution companies. This covers the complete range of locally preferred payment options that local companies have relied on for a long time. E-commerce companies that work with local suppliers have to understand the local economy & banking system, laws, and platforms that have a good technological base. They will then have the capacity to operate together based on guidelines and local rules.
It has brought digital money and digital payments
Companies which offer major technology advancements like Facebook, Google and Microsoft have noticed a rise in digital purchases and transfers. Facebook ads are easy to purchase, purchases on the Google Play store have increased, and Microsoft products are much easier to buy. All of these companies have benefited from FinTech development. Consumers used to be reluctant when paying since the entire process was complicated and slow, leading to high abandonment rates. Today, the inconvenience of online shopping is a thing of the past – all that’s needed is a single click from the comfort of our own home and products are on their way. Smaller companies have also noticed a rise in the purchases since online payments are globally available.
Another important thing is that online payments are becoming more and more available in developing countries. Using services of payment companies like PayPal used to be complicated or even unavailable in most countries due to regulations, but now that it is, there has been a rise in online transfers and purchases.
The World Bank estimates that there are close to 2 billion unbanked adults globally, with 11% being in developed, high-income countries, and 59% in developing countries. This is a great opportunity for digital money companies to find their way into the market.
It has driven technological advancements
With payment options improving, global e-commerce had to change too, with the change most noticeable in digital payments. They have come a long way during the past decade, advancing their methods and systems.
Indirectly, new payment options have led to technological advancement in developing countries as well. With wider reach, small businesses have more money to spend on improving their tech and their systems. Those in developing countries now have a chance of selling their product on bigger markets and that has brought immense advancement to those markets. Payment options have helped a lot since banking systems all around the world sometimes don’t work well together, and payment companies do.
New payment companies are finding their way
Next to already established and popular payment companies, there are many more new, young ones paving their way through to their audience. Having witnessed the rise of the most popular platforms, new players test their luck in UX/UI and attractive features.
If you are a user of Payoneer, for example, you’ll be able to get a debit card from which you can always pull funds that you have on your account without the wait time you would have on PayPal, for example. Some of those companies – Payoneer or Stripe for example – have already grabbed everyone’s attention and have brought many new things to the table. With more and more people using other payment options, it was inevitable for new companies to come along and create space for themselves.
Blockchain technology has developed
Blockchain technology has been one of the highlights of the past few years of FinTech innovations, originally created to send payments digitally between two parties without a third party being required to verify this transaction. Blockchain was designed to transfer bitcoins and other cryptocurrencies.
Today, blockchain-based solutions represent a huge market – many new cryptocurrencies are appearing and allowing more people to get involved. New cryptocurrencies are cheaper than those that are already established and thus more available – and even though they are cheap in some cases, their value is growing over time.
Blockchain technology is safe, secure, and represents a simple digital alternative to traditional methods of transfer. This also brings great rewards to e-commerce since people can use their cryptocurrencies to purchase various products in online retail stores.
FinTech and numerous payment options have created a better economy for everyone. Small businesses have bigger access to people all around the world – businesses from developing countries can find their audience in developed countries and therefore improve their sales & reach. This has increased the global e-commerce conversions. FinTech and payment options will continue to change the way we do business and the way we trade, making it easier and more convenient for users.