E-commerce Payment Strategies

Digital wallets (DWs) are the leading and fastest growing payment method globally. Yet not all DWs are the same. This is my analysis of the different players and business models behind them. The numbers: —  5.2 bn users globally by 2026 —  53% e-com global share ($3.1 tn) —  32% POS global share ($12.1 tn) To understand how DWs differ (strategy, positioning) we need to categorize them. These are my criteria: 1)  The types of players that are behind them: SuperApps, BigTechs, e-commerce players, banks, crypto providers, telecoms, big brands, etc. 2)  How they manage funds: DWs such as Apple or Google Pay (pass-through) don’t have their own balance, others such as PayPal process funding and payments in separate stages, whereas Alipay and WeChat Pay are stored wallets, pre-loaded with funds. 3)  The kind of use cases they support (online or in-store with P2P, C2B, B2C, B2B, C2G and G2C variations). 4)  Their technology: QR-codes (widespread in Asia) vs NFC (popular in Europe) or crypto wallets are examples. 5)  Their target audience: merchants, marketplaces, big brands, niche users, etc. 6)  The payment methods they support: credit or debit cards, bank accounts (A2A transfers), crypto, etc. Based on the above, I have identified 10 distinctive DW plays: 1. SuperApps in Asia that have evolved from simple wallets facilitating payment use cases to huge ecosystem behemoths with multiple plays (consumer, merchant, government, lending, etc).   2. Bigtechs like Apple and Google using DWs as vehicles to monetize their user base and expand beyond their core offering. 3. E-commerce platforms like Amazon, Mercado Pago or Rakuten looking to boost their business and create new growth opportunities. 4. Ecosystem players in local or regional markets that use DWs to bring payments, digital platforms and mobile banking functionalities under one umbrella. 5. Banks looking to compete with new value-chain challengers (fintechs, platforms) on their own (front-end) customer-facing game. 6. A2A players like Venmo or Zelle focusing on social features, P2P payments, instant transfers, bank integration and competitive pricing to expand their offering. 7. Niche players using customization, vertical focus, rewards and loyalty programs and specialized offerings to service specific use cases (i.e. gambling, gaming, FX). 8. Crypto & blockchain players using DWs to bridge the gap with the fiat world and to offer new use cases. 9. Big brands like Starbucks leveraging DWs to build closed-loop FS ecosystems. 10. Telecoms in Africa employing DWs as a replacement for core-banking infrastructure.   DWs’ spectacular rise is not only democratizing access to payments and to broader FS faster than any other point in history but it is also forcing players across the value chain (providers, merchants, banks, platforms, fintechs) to re-think their entire positioning and strategy. Opinions and graphics: Panagiotis Kriaris Subscribe to my newsletter: https://lnkd.in/dkqhnxdg

Here's the exact reason why 70%+ of carts are abandoned and forgotten: Imagine your customer is ready to buy something online, credit card in hand, and then... · The payment process is a nightmare · Their preferred payment method isn't available · The transaction gets declined for no apparent reason Guess what happens next? Cart abandoned. Customer lost. Game over. The solution? Having a payment orchestrator. Payment orchestration allows your company to provide a smooth, seamless experience that keeps customers coming back. Here's how: 1. Simplifying the checkout: → One-click payments → Guest checkout options → Autofill features Did you know that 70.19% of carts are abandoned due to complicated checkouts? That's a lot of lost revenue. 2. Enabling multiple payment options: → Credit cards (still king in many places) → Mobile wallets (Apple Pay, Google Wallet) → Buy Now, Pay Later (BNPL) → Subscription billing Fun fact: BNPL is projected to account for 13% of global e-commerce payments by 2024. That's huge. 3. Increasing security and trust: → Advanced encryption → Tokenization → Multi-factor authentication 64% of consumers are worried about online security. Show them you've got their back. 4. Adding personalization: → Tailored recommendations → Custom discounts → Personalized payment plans McKinsey says this can deliver 5-8x ROI on marketing spend. The results our clients are seeing: · Higher conversion rates · Increased customer loyalty · Expanded market reach · Boosted revenue In the world of e-commerce, the payment experience can make or break you. It's not enough to just accept money anymore – it's about creating an experience that customers love.

Technology and evolving consumer preferences are rapidly changing the #payments space. Find out the 5 top trends to watch in eCommerce 👇 Consumer demand for convenience, efficiency, choice and security are the key factors that continue to significantly impact the way people pay and expect to be paid. While eCommerce brands (Faire, Chewy, Rebag, eBay…) are looking to grow sales, curb processing costs, and maximize approval rates, they have recognized the significant role payment technology plays in accelerating their revenue. - - - 1️⃣ Payment Optimization is top of mind! 👉 Businesses are turning to optimization to reduce the number of sales lost due to payments issues (lack of localized payment options, declines, security concerns..). 👉 70% of all drop-offs happen after the customer enters the payment flow & 82% of online retailers struggle with identifying the causes of failed payments. 👉 Choose a payment partner that provides real-time reporting, accurately identifies the cause of failed payments and leverages technology to automatically resubmit declines. - - - 2️⃣ Global expansion through hyper-localization 👉 Cross-border sales are expected to make 33% of all eCommerce spend by 2028. 👉 Optimize your checkout offering the relevant payment options in each market - digital wallets (Alipay, PayPal) BNPL (Affirm, Klarna) Instant Bank Transfers (UPI, PIX) etc. 👉 Leverage local acquiring for higher authorization rates and reduced processing costs, including redundancy! - - - 3️⃣ Mobile-first commerce online & in-store 👉 60% of all eCommerce sales globally happen on mobile. Mobile Retail is becoming a cross-channel experience where brands need to create a unified customer journey. 👉 Ensure your platform is optimized for mobile shopping and payment features (one-click checkout, mobile wallet integrations…) - - - 4️⃣ Card Issuing Services: Expanding use cases 👉 White-label card issuing has traditionally been seen as part of #embeddedfinance offerings to CONSUMERS. 👉 Today, card issuing applies to BUSINESSES with the objective of streamlining B2B Payments, optimizing auth rates, reducing costs and facilitating faster payouts. 👉 Choose a PSP that is both an #acquirer and #issuer to replace invoice payments and checks with Instantly-issued virtual card. - - - 5️⃣ The growing momentum of Account to Account Payments (#A2A) 👉 A2A payments are set to challenge traditional payment methods for eCommerce and wallet fundings. 👉 Malaysia & Thailand are leveraging A2A as the leading online payment method. In the U.S., the adoption is slower, yet expected to rise with FedNow. 👉 Open-banking enabled A2A transfers reduces checkout friction and converts up to 40% better than cards. Check out Nuvei’s report: https://ow.ly/5hvg50Qyhol ----- Hit the 🔔 on my LinkedIn to stay updated with the latest Payment Initiatives & check out Connecting the dots in payments... ‼️ #globalpayments #payments #technology #fintech

Want more conversions? Give your customers the payment options they trust. Stores that add multiple payment methods—like PayPal, Apple Pay, Google Pay, and Klarna—are seeing major wins. Why? Customers want flexibility and security when they checkout. Take Levi’s as an example. When they introduced PayPal as a payment option, they saw a 12% increase in conversions. Many customers preferred using PayPal for its ease and added layer of security. Other Shopify stores like Gymshark and Allbirds have seen similar results. Offering more options means less friction and fewer abandoned carts. It’s simple: the more ways you let customers pay, the more likely they are to complete the purchase. The takeaway? If your store only offers credit card payments, you’re leaving money on the table. Adding trusted payment options—especially those that give customers an extra sense of security—can lift your conversion rates and reduce cart abandonment. What payment methods does your store offer?

The evolution of payment methods is reshaping the way we pay, but how do merchants handle this constant change on a global scale? The past few years have seen an explosion in alternative payment methods (APMs) available to consumers, driven by rapid advancements in technology, growing consumer expectations for seamless experiences, and increased awareness of data privacy. With a myriad of options like digital wallets, cryptocurrencies, and mobile payment apps, consumers now expect the flexibility to choose how they pay. For large merchants, managing such a diverse ecosystem of payment methods can seem overwhelming. However, there are strategies to ensure a smooth integration and management of these options, ultimately providing the best customer experience: Partner with a reliable payment orchestration provider: A well-established payment orchestration platform can handle hundreds of APMs on a global scale, providing merchants with a unified platform for easy management, reduced operational complexity, and region-specific security features. Prioritize popular APMs: Focus on integrating the most widely-used APMs in your target market, while also keeping an eye on emerging trends to stay ahead of the competition. Optimize user experience: Seamless integration of APMs into your existing checkout process is crucial. Design user interfaces that cater to various preferences and devices, ensuring a frictionless payment experience for all customers. Prioritize security and compliance: As you adopt new payment methods, be vigilant about maintaining strict security standards and staying compliant with relevant regulations to protect your business and customers. Stay agile and adaptable: The payments landscape will continue to evolve. Be prepared to iterate on your payment processes and adopt new technologies as they emerge to stay relevant and competitive. By proactively managing the integration of alternative payment methods, large merchants can unlock new opportunities, provide better customer experiences, and stay ahead in the rapidly changing world of commerce. Source Ali Ahmed #payments #fintech #digitalwallets

🤔Understanding 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗢𝗿𝗰𝗵𝗲𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 Let me break it down for you: In the 𝟭𝟵𝟵𝟬𝘀, with the rise of Ecommerce, the first payment gateways came into existence. However, they lacked today's advanced collection and reconciliation tools. The 𝟮𝟬𝟬𝟬𝘀 saw integrations between developers and gateways due to limitations in serving all customers through one gateway. By the 𝟮𝟬𝟭𝟬𝘀, PSPs transformed, introducing alternative payment methods, fraud prevention, and global payments in local currencies. The 𝟮𝟬𝟮𝟬𝘀 witnessed a shift, with over 60% of retailers using multiple payment providers and payment orchestration becoming essential for businesses. What is 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗢𝗿𝗰𝗵𝗲𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻? Drawing from the world of music, payment orchestration functions similarly to a maestro harmonizing an orchestra🎼 This system blends multiple payment processes, offering an efficient and streamlined transaction route. It centralizes various gateways, ensuring a smooth consumer checkout. Integrated reporting provides a unified data view, and "smart routing" auto-directs transactions through the best route. Europe's e-commerce data shows that roughly a quarter of Mastercard's payment authentications in early 2021 failed. Smart routing in payment orchestration aims to combat such issues. Business Research Insights predicts that by 2027, the payment orchestration market will be valued at nearly $5 billion. Key advantages of payment orchestration include: 1️⃣ Cost and Time Efficiency: Merchants can choose lower transaction fees from a range of providers. 2️⃣ Increased Conversion: Improved customer experience boosts conversion rates. Factors like smart routing, diverse payment methods, and local currency support play significant roles. 3️⃣ Transaction Success: With the rise in digital payments, ensuring transaction success becomes vital. Payment orchestration can notably reduce decline rates. 4️⃣ Customer Loyalty: Offering preferred payment methods enhances the buying experience, fostering customer loyalty. 5️⃣ Global Expansion: For businesses aiming globally, understanding regional payment preferences is crucial. 6️⃣ Rapid Scaling: Merchants can swiftly integrate solutions supporting business growth. 7️⃣ Fraud Reduction: A consolidated platform with multiple payment methods aids in fraud prevention. 8️⃣ Automatic Reconciliation: This feature minimizes errors, saving internal resources and enhancing efficiency. 9️⃣ Real-time Ledgers (RTLs): RTLs provide almost instant financial data visibility, ensuring transactional integrity. Source: Axerve This and more FinTech News & Updates in my daily newsletter: https://lnkd.in/e-tzDwh7 Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

Forget one size fits all, local payment methods are the new consumer favorites in markets round the world Local Eats Global, as global card schemes lose ground to local favorites like digital wallets A2A, carrier billing and BNPL in Ecommerce These are some findings from a The 2024 Global Ecommerce Report which analyses data from 37 major markets, highlighting global, regional and country specific trends. Key Findings ▸ Local payment methods will reach 58% of all ecommerce transaction value globally by 2028, reflecting a major shift within the ecommerce payments market. ▸ By 2028, almost 37% of all individuals globally will actively use local payment methods, reflecting massive growth and expansion of the ecommerce market across the world. ▸ Card values will decline to 20% of transaction value by 2028, from 31% in 2023, reflecting a major shift as the ecommerce market expands. ▸ BNPL is steadily growing its share of ecommerce values, from 4% in 2023 to 5% in 2028, reflecting steady progress outside of key, already highly saturated markets, such as Australia, Germany and Sweden. ▸ A2A payments are seeing strong growth, from 8% of ecommerce spend in 2023 to 16% in 2028, a dramatic increase, reflecting major shifts in this market. Why Going Global Needs Local Payment Solutions As someone who knows payments, I'll explain why understanding local preferences matters for success worldwide. Thinking Globally, Acting Locally: ▸ One-size-fits-all no longer works: Countries have very different ways to pay. If you ignore this, you'll lose sales. ▸ Welcome local favorites: Give your customers the payment methods they like. This shows respect for their choices and helps build trust. ▸ Give a variety of payment options: People enjoy choices when shopping online! In some places, folks use several ways to pay. Don't stick to just one. ▸ Make the user experience smooth: Cost might not be the main factor. An easy and familiar way to pay is crucial to get more sales. Keep in mind, a global outlook means changing how you do things in each market. When you cater to local payment likes, you'll open up a whole new world of chances. Source: Boku (Link in comments) #DigitalPayments #Fintech #Payments #Ecommerce #Cards