The technology involved in facilitating and accepting online payments continues to change, develop and adapt. As users of e-Commerce products and services grow in numbers, financial providers streamline payment technologies to correspond with consumer preferences.
Contactless cards, e-Wallets, and the range of other modern payment solutions available today seemed impossible just a few short years ago, but have quickly become an integral part of everyday life. Though alternative payment systems were slow to gain popularity due to consumer doubts about data security, the technology involved was continuously refined and improved until users felt secure in the benefits of innovative alternative payment methods.
Leading e-Commerce experts have gone on record, recognizing the vast advantages alternative payment methods offer merchants, including an increased efficiency in payment processing.
Alternative payment systems gain popularity
Significant changes await the world of payment solutions. As the volume of transactions carried out using alternative payment systems increases, credit and debit card transactions are on the decline. According to recent surveys, more than 50% of online payments are made via alternative payment systems. Users prefer quick and easy payment method, so widespread alternatives, such as e-Wallets (Yandex.Money, Neteller, WebMoney), mobile applications (ApplePay, SamsungPay), prepaid cards, etc., are swiftly growing in popularity.
This upward trend is also associated with the recent phenomenon of consumers preferring to use their mobile devices for online shopping. Rather than using the traditional computer or laptop for online browsing, users now turn to mobile phones and tablets for browsing on the go. When it comes to making payments, alternative payment systems provide the optimal solution for m-Commerce users.
Alternative payment systems are adapted to mobile technology, guaranteeing a rapid, almost instantaneous, payment process. The online shopper engaging in making purchases doesn’t have to waste time on entering personal and card data. Instead, payments can be made in a few clicks following an easy, short registration process. Alternative payment systems often feature convenient functions, such as keeping track of balance, expenditures, and even sales promotions.
Most importantly, alternative payment systems incorporate higher levels of security than traditional methods. As they do not require users to enter personal data for every payment, which reduces the risk of transmitting this information to third parties, additionally most of the alternative payment systems ensure that customer details are better protected.
Popular payment trends in the retail segment
One of the leaders in the field of mobile payments, Starbucks has been promoting its own alternative payment method by giving customers discounts for paying via smartphone. All branches of the Starbucks chain feature the payment terminals necessary for accepting contactless mobile payments, leading to widespread use. Furthermore, Starbucks has introduced a prepaid card in collaboration with VISA. This payment system also engages customers by offering additional bonuses and has been acknowledged as a rousing success. During the first quarter of 2016, $1.2 billion was entered into loyalty cards.
The fast-food chain McDonalds has also kept an eye on payment trends, offering residents of certain regions the option of paying for their orders using a mobile device. In several countries, the company has introduced a program to support mobile payments, which customers can take advantage of by using a mobile wallet.
Providing e-Commerce consumers with a reliable platform through which to find and book accommodation anywhere in the world, Airbnb supports a wide range of devices and payment options. The company already accepts the traditional payment systems as well as selected alternatives, including ApplePay and SamsungPay, and is further considering the possibility of accepting payments using blockchain technologies.
The rise in popularity and concurrent development of alternative payment systems has encouraged representatives of large, well-known companies to implement current trends into their payment interfaces. Payment provider ECommPay has experienced an increased demand for the integration of alternative payment systems from clients seeking to use the latest technologies to grow their business.
As interest into new and advanced technologies on the behalf of e-Commerce consumers grows, companies seeking to tap into new markets and retain customers must adapt, introducing innovative products and services. Based on years of experience working within the e-Commerce sphere, ECommPay believes that the most important factor for successfully integrating alternative payment systems is understanding of customer needs, preferences and business requirements, to offer the best solution relevant to the particular industry.
For more information on the range of products and services ECommPay offers, please contact our team of payment experts: [email protected]