Digital Payments is a mode of financial transaction involving no cash and carried out completely using a bank’s digital/online service. The term ‘’Digital” is seeing a major rise everywhere be it essential shopping or medicines or paying hospital bills.
eCommerce is no different rather it is the major game changer when it comes to digital payments. The reason being a variety of factors like Safety, Security, Convenience & Time saving.
Over the past few years digital payments have seen a dramatic rise due to rise in the eCommerce industry.
Several leading companies have adopted eCommerce solutions to provide essential services like grocery, food delivery, medicines, home furniture and this is only the beginning.
The U.S. eCommerce market is on the rise with 78% citizens shopping online as of 2019, while Amazon itself constitutes 50% of the entire market.
The Covid Impact
The global economy has seen a major decline in sales due to the ongoing pandemic and physical retail stores have had a major setback. But the stores who have quickly gone digital were benefitted largely- in other words “digital transformation”.
Customers will want to avoid cash payments in view of social distancing norms, and this is where digital payments are essential now even more than before. Many tech companies providing eCommerce solutions have come forward to make an impact in this area.
Advancements in Technology
Contactless Card Payments are on the rise in U.S. in the recent past covering a whopping 47% of eCommerce transactions close to $350bn sales online.
QR codes are a major disruptive payment mode where the customer scans a piece of code from their mobile device to make payment. The ease of usage and hassle-free payment method has traction over 15 countries instantly and has been a preferred method ever since.
Digital wallets are another crucial piece of the entire digital payment industry since they form a bridge between all the payment methods. A typical digital wallet enables payments via cards, banking, and options to store money digitally in the wallet itself.
The most valuable proposition is the integration of QR codes in the wallet’s account for easier and faster payments.
Passwords are becoming older now ever since apple has introduced face recognitions for payments. While the option still hasn’t become mainstream yet, there is a growing sense of urgency to find an alternate to the password which is becoming primitive now there by paving way for 4 digit pins and fingerprint recognition in most of the mobile devices.
Digital Payments are getting benefitted from E-Commerce
eCommerce has been a sector gaining major traction not only in these challenging times but since the era of digital transformation.
The latest BOPIS trend is no different wherein buyers have the options of buying and paying online, while the QR code is still useful anyhow in case of any in-store purchases thereby making digital payments more effective.
The conventional retailers going the digital way will look to integrate a payment gateway for sure to provide their customers with a safe and hassle-free experience.