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What the pandemic thought us about online payments?
A new landscape emerged
2020 will always be synonymous with the Covid-19 pandemic and its consequences. The coronavirus crisis changed the playground for a lot of businesses and the e-commerce sector was no exception. But in parallel to challenges this has created a lot of opportunities as well, What the pandemic thought us about online payments?
A lot of citizens woke up in March 2020 to life under lockdown and social distancing became the new rule. What happened next? Except from subscribing to Netflix, they also started to purchase online. Even those who had refused to shop online in the past had no other option. The result: the growth of e-commerce had no precedents in recent history.
Let’s talk numbers
Online retail sales as a percentage of total retail sales were sitting at around 19% in February 2020. A year later, it had skyrocketed to close to 35%.According to UN trade, the e-commerce sector saw a “dramatic” rise in its share of all retail sales, from 16 percent to 19 percent in 2020. The UK saw a spike in online transactions from 15.8 to 23.3 percent; so did China (from 20.7 to 24.9 percent), the US (11 to 14 percent), Australia (6.3 to 9.4 percent), Singapore (5.9 to 11.7 percent), and Canada (3.6 to 6.2 percent).
UNCTAD reported that online business-to-consumer (B2C) sales for the world’s top 13 companies stood at $2.9 trillion in 2020.
E-commerce is not slowing down in 2021
One thing is for sure: the increasing preference for E-commerce is going to last more than the pandemic context.
According to Forbes, Amazon’s latest earnings call revealed another bumper quarter for the Seattle-based giant, topping $1 billion in revenue for the second quarter in a row. It is clear that e-commerce is showing no signs of slowing down in 2021.
But it looks like competition for brands is huge, both from recently reopened stores and from the countless businesses that flocked online during the pandemic. So the only way to succeed in this crowded industry is to stand out. And how can you stand out? You need to look ahead to the next big trends. Acquiring knowledge and expertise in this sector can be really challenging, but with the right guide and know-how, you’ll be able to stay on top of your competition.
Innovation is key
Also what 2020 taught us about online payments, is that the rise of the e-commerce sector and the innovation of payment solutions go hand in hand.
More people turned into online shopping and they started buying unconventional products for the sector. Except from books and clothes, products from other industries such as medicines, supermarkets, automobile accessories emerged.
This rise of e-commerce has brought about many changes, most of which are happening behind the scenes. Businesses had to face volumes and payment behaviours that they did not anticipate would occur for several more years. So most of them relied on technology and innovative payment solutions. They were desperate to keep up with their new customers and offer them a friendly and secure user experience.
Look for alternative and secure payment methods
E-commerce has been a part of our everyday lives for quite some time now. We have become costumed to shop online via intuitive apps and mobile-friendly websites, but the countless alternatives to pay for products are trying to set a big change in our world.
As a 451’s (a New York City-based technology industry research firm) research suggests that usage and adoption of digital payment methods such as contactless, wallets, and instalments has increased dramatically so far this year.
To further respond to the shifts in payment volumes, businesses need to accommodate a new payment infrastructure. For being more precise, a highly performing payment infrastructure. The increase in payment volume also means new customer demands. They would ask for a better user experience and more security. And when it comes to online shopping, everything turns to online payments in the end. It’s no surprise that 70% of merchants that are digital transformation leaders say payments are a highly strategic area of focus for their business.
So if you’re a business owner, what you should ask yourself every day is this: Am I catching up with this new landscape? Or to put it differently: Am I cashing up?
If you want to stay on top of the digital payments landscape, the team at World Card is always available to discuss your business needs and provide innovative solutions globally.
Do not hesitate to reach out and explore the ways in which we can build your customer loyalty.