The Disruptive Impact of eCommerce Payments

eCommerce Impacting the World’s Economy

eCommerce is a major engine of the world’s economy. It experienced an economic upshift in the year 2020 as a consequence of the economic slowdown that accompanied the global health crisis of COVID-19. At the same time, the continued digitisation of commercial and consumer transactions contributed to even greater upward momentum than expected.

Omnichannel as a Key Driver of eCommerce Growth

While the growth of eCommerce has slowed since the explosive growth period of the 2000s, the overall volume and value of eCommerce purchases continues to climb, particularly spurred on by the pandemic. Aside from the significant impact of the COVID-19 pandemic, there are several other drivers supporting this growth. Growth over the next five years will be driven by retailers offering compelling omnichannel retail experiences that increase user eCommerce spend. Omnichannel retail is a model that provides end users with the ability to access retail services, including sales and customer support, via multiple channels.

Customer-centric Models Leading eCommerce Developments

The modern customer expects transactions to be quick, seamless and personalised. The simplicity and convenience offered by eCommerce has permanently altered consumer behaviour, and this has extended quickly to the payments market as well. Consequently, the segment has undergone drastic changes in the past few years and will continue to undergo further changes. Payment companies have been increasingly capitalising on the power of big data, analytics and the cloud to create customer-centric models.
Under this increasingly digital model, payments have now become a ‘commodity’, with consumers embracing models that offer greater value. A combination of consumer demand, emerging technologies, market competition and regulatory push has boosted the digital payments segment significantly and meant that merchants have had to up their game when it comes to their payment offerings.

The Impact of COVID-19

Although the growth of eCommerce has slowed since the explosive growth period of the 2000s, the overall volume and value of eCommerce purchases continues to climb. The COVID-19 pandemic has served to accelerate what was already a rapid shift toward the digitisation of payments and a significant change in consumer shopping behaviour, with increased bulk buying and panic buying at the outset, and a shift towards online purchases, driven by nationwide lockdowns. Retailers have had to accelerate plans for creating and refining their online presence, as well as having to integrate their brand and checkout in an effective way. The COVID-19 pandemic has meant that eCommerce suddenly became a prominent requirement for many retailers, and has shown how quickly some SMBs have been able to pivot to accommodate new ways of operating to keep staff and customers safe and reduce contact.