Tuesday, January 25th, 2022
COVID-19 was considered a negative force in the economy. Nobody predicted the scale to which economic systems would suddenly depend on e-commerce. As borders reopen, businesses will need to adapt to the evolving world of e-commerce to sustain this increase in web-based activity.
Therefore, as 2022 approaches, three significant forces will disrupt the payment sector.
- First, payment enablers will need to play a more integrated and comprehensive role for retailers.
- Second, as competition and shopper expectations rise, payment solutions will emphasize more on the customer experience than ever before.
- And third, underserved, rapidly-growing zones such as South America and Eastern Europe will attract the attention of more retailers, speeding the shift from the United States and Western Europe.
Comprehensive payment solutions will support retailer growth
PayU has witnessed several e-shops claim extraordinary YOY gains in 2020, highs of 500-1000 percent in some locations in the April-May period alone. This unexpected increase has been repeated throughout the sector.
According to a recent GroupM assessment, retailers selling consumer packaged goods have observed a change in how shoppers buy their products. The survey shows e-commerce channels surged by 277 percent over the course of the year.
To capitalize on the boom in e-commerce next year, retailers will rely on payment networks for more integrated collaborations to sustain– and expand their business.
This involves payment enablers delivering creative and valuable services for retailers. Therefore, fintech must be on standby to handle the increased sales volumes, mounting online fraud, changing payment habits, and high shopper expectations that will continue into 2022.
An integrated collaboration will provide businesses with a comprehensive solution to initiate smooth, secure transactions and meet different consumer payment demands.
Predicting shopper behaviour
Shoppers’ expectations are high. And that’s exactly what they should be.
Artificial intelligence (AI) and machine learning enable businesses to personalize or automate nearly every aspect of the consumer journey.
According to a Capgemini study, fintech companies already see a positive effect from adopting AI in their customer-facing services. For example, the study reports a significant 13percent cut in operational costs and a 10 percent gain in revenue per client.
In a nutshell,
As the worldwide expansion of e-commerce makes the sector more competitive, payment processors will need to unlock complex data for retailers. Datasets that will assist them in predicting shopper buying habits and providing favoured payment options and currencies.