Future of E-Commerce: New Ways of Paying, New Ways of Buying

Businesses need to make sure that the payment solution on the e-commerce platform they offer matches the market they want in the region.

Online and in-store shopping is gone. Even in-store retail commerce has been replaced almost entirely by digital eCommerce. This term was used to describe the combination of offline and online commerce we enjoy today.

Digital platforms have become an integral part of the retail experience, whether it’s the purchase itself or the payment methods used to facilitate them.

Global brands have been able to reach new markets quickly and gain market share by leveraging this technology. It is not difficult to say that it is.

Digital transformation is a growing trend in many parts of the globe, as evidenced by the expansion of Southeast Asian markets such as Indonesia, which has seen the rise of internet infrastructure and social-economic consumer groups.

These factors allow for a wider range of transactions and payment options in established economies. However, e-commerce has developed at different stages in different regions. Some markets have a more competitive landscape than others.

Businesses of all sizes and industries must match their payment capabilities with the regions they operate in to claim a share of the pie. This ensures that the solution they offer is compatible with the market and sensitive to its complexities.

The New Commerce, from E to M

It is not possible to draw a clear line between “traditional” and e-commerce. Online or in-person shopping for household supplies and clothing is no longer a distinct line. Traditional purchase behavior tends to be more routine and considered than a single purchase.

These transactions are conducted using a preferred method of payment. If a preferred method is unavailable, it is unlikely that the purchase will be completed.

Apps allow pre-programmed transactions and automated payment authorization. Apps have proven to be three times more effective than mobile websites at converting customers.

Grab and foodpanda, for example, have built their businesses around the on-demand model. These apps function as commerce utilities. This means that these apps can be used to make spontaneous purchases whenever they are needed.
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Cards? Who needs cards?

Although plastic cards can be used as cash in certain economies, they are quickly being replaced by more convenient payment options in the Asia Pacific region. Payment wallets such as Fave, GrabPay, and QR codes are common forms of payment in Singapore.

These transactions can be called “pull” transactions because they draw the funds from another store of value. The web browser is the “wallet” in this instance.

It is worth noting that mobile-based m-commerce can be extremely successful in driving conversions. This is because customers engage with their phones in such an ingrained way: messaging, scrolling through news and social feeds, playing games, which are often used as m-commerce along with in-app purchases.

This almost reflexive behavior lowers the barriers to purchase as well as complete purchases using locally preferred payment methods.
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Banks as brands, not places

The distinctions between banks, payments companies, and electronic platforms are becoming blurred as digital payment platforms begin to operate as banks. This means that e-commerce and mobile commerce will reflect more of the purchase behavior.

This will also mean that the relationships between local payment methods, and consumers who use them, will be closer. If merchants are to succeed and grow their client base, they will need to tap into these payment systems.

The shift to easier electronic payment methods is driven by the habits of youth. The move to cashless commerce, which does not depend on credit cards, is inevitable and will accelerate.

If retailers want to be successful in this market, they will need to look beyond their websites and apps to reach their customers’ wallets.