Social media shopping is a growing international trend with a huge potential for commerce. This has only been exaggerated by the COVID-19 crisis, with one global study reporting an increase in social media engagement of 61% over normal usage rates. Thus, payment service providers (PSPs) and other financial institutions should support their clients with social media payments, as the pandemic shutdown forced the future of social shopping to arrive on a much, much faster timeline.
The payments system is no stranger to regulations, but PSD2 (Payment Services Directive 2) is given additional importance due to its impact and a new generation’s expectations. However, in this new digital era, PSD2 is the key to fighting online fraud while boosting innovation with new payment services.
The major development of PSD2 is the introduction of new security measures like SCA (Strong Customer Authentication). 3DS2 technology is the solution specifically designed to comply with the SCA requirements and overcome the shortcomings of the original 3D Secure protocol, 3DS1. For this reason, it will also bring a wealth of benefits to both merchants and customers.
Purchasing items on social media is a growing international trend with huge potential. During the COVID-19 crisis, 42% of people in an international Global Web Index survey reported spending a greater amount of time on the likes of Facebook and Instagram. And with social distancing continuing for months, that trend is likely to continue.
According to PayPal, around eight million Britons currently buy items through social platforms and less than a quarter of businesses sell through them. It’s an underappreciated way of trading that CMOs at PSPs, along with banks and other financial institutions, should help clients concentrate on much more.
A record 33% of UK purchases took place online in May, according to the Office for National Statistics. Yet with average conversion rates at less than 3%, firms are still missing out on billions of potential income.
The likes of better, persuasive sales copy on websites can help firms profit more from the fast-rising interest in e-commerce in the post COVID-19 world. But CEOs and CMOs at PSPs and banks must ensure that their organisations are supplying clients and their customers with seamless checkout experiences. Payment platforms should be mobile-friendly and instantly offer an alternative payment method when the customer’s first choice did not work out. And of course it should send out second-chance emails if a customer has prematurely abandoned the payment page. Moreover, they should let customers use their native currency, if possible. However, if firms are to really compete, platforms also need to make heavy use of recent innovations.
The ecommerce market is on a powerful growth trajectory – one that has only been boosted by the ongoing COVID-19 pandemic forcing shoppers globally to stay at home. According to eMarketer, global ecommerce sales will hit $5 trillion next year, following a period of annual growth rates of over 20%.
The opportunity for banks and other payment businesses is enormous. Billions of dollars of fees are available for companies that can make international ecommerce as smooth and seamless as possible for their merchants. The trouble is that offering a truly international payments platform is challenging for any organisation, let alone an established bank or payments business with dated technology and a sprawling existing infrastructure and client base to manage.
According to the Worldplay annual payments report, digital wallets are set to be the most popular online payment method by 2023, with a 52% market share. This change is mainly driven by growing digitalization and smartphone penetration.
A digital wallet is a payment system for making e-commerce transactions. Usually, individuals’ bank accounts are linked with digital wallets, which securely stores user credentials and banking information. One can utilize digital wallets to both make payments online or also in-stores that accept mobile payments. Examples of the most popular digital wallets are ApplePay, Google Pay, Paypal, Venmo, and AliPay.
The e-commerce sector is growing at a rapid pace in Europe, with 13% growth in 2019 compared to 2018 and 23% of e-commerce being cross-border. Moreover, the coronavirus crisis further illuminated the importance of digital payments, forcing companies to evaluate their online presence.
This digital growth and external pressures present many opportunities to expand. Yet it is crucial to be aware of the most popular payment methods in other markets, as customers ultimately need to be able to complete the transaction and pay with their preferred method.
As the E-commerce sector is evolving, fraud is also becoming more prevalent and sophisticated.
Evidently, fraud management is of growing importance to businesses that attempt to break the cycle of this constant cat and mouse game. In this article, we will discuss the main challenges associated with fraud prevention and the relevant tools your business can adapt to mitigate the risks