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How FinTech Companies Have Revolutionized the eCommerce Business
An industry that is always developing and aiding in streamlining companies' finances is known as fintech or financial technology. FinTech products have been increasingly prevalent over the last ten years, helping eCommerce companies invest in new sales strategies, e-commerce advertising, company expansion, financial services management, and many other things.
So, say you want to sell custom water bottles or custom slides on Etsy; in addition to understanding how to sell on Etsy, it would also benefit you to learn how financial services are changing marketplaces to gain even more from your business.
Fintech growth has allowed eCommerce businesses to scale quickly and attain peak success, making it obvious that the two industries' growth goes hand in hand. Let’s look at how FinTech companies and their products have revolutionized the eCommerce Business.
What Is FinTech?
FinTech is short for Financial Technology, which includes financial services offered through technology. It covers new technology that aims to enhance and automate the financial service delivery process.
FinTech products cover innovations such as payments with mobile, trading stocks, cryptocurrencies, blockchain technology, and much more. Fintech serves all the other sectors to make payments and transactions easier for businesses and their clients.
At its foundation, fintech uses sophisticated algorithms and software on computers and, progressively, smartphones to assist businesses, company owners, and individuals in better managing their financial activities, procedures, and other transactional affairs.
Much like e-commerce marketing tools, Fintech contributes to e-commerce's convenience, effectiveness, and reliability in various ways. Since its inception, fintech has begun to revamp the payment service sector. It has made it incredibly simple for eCommerce brands to accept and process customer payments.
How Has FinTech Revolutionized eCommerce?
It is undeniable that Fintech has had an enormous influence on the eCommerce industry as well as its profitability. Fintech technology may be used in various ways by companies and conventional financial institutions, especially in the eCommerce industry. Let's examine some of the greatest developments in fintech shaping e-commerce payment processing.
Improved eCommerce Payment Processing
Fintech companies are enabling and enhancing eCommerce payment processing, thus streamlining and eliminating any impediments from the checkout process.
eCommerce payment processing innovation is typical of digital enterprises. Business operations are changing as a result of ongoing innovation. Payment methods have a measurable effect on merchant sales, especially in the case of eCommerce businesses.
One of the biggest reasons people prefer to shop online is the quick checkout process. Nowadays, consumers have the option of making purchases either from their houses or on the road. The popularity of mobile devices and applications makes this convenience feasible.
Moreover, eCommerce payment processing innovation has evolved from a crucial profit center to a centralized function now recognized as a source of income and profitability. Merchants must adapt to these innovative services to guarantee that their customer experience remains the finest. What's more, when choosing a provider to accept payments on your website, it's important to consider factors such as security, fees, customer support, and ease of integration. If you are a big player on the market, then it might make sense to use a white label payment gateway for routing and cascading payments between different channels and methods. Such a system provides such useful features as plugins, SDKs, recurring payments, routing, and invoicing.
Buy Now Pay Later (BNPL)
Buy now pay later or BNPL is among the latest trends of fintech that have impacted the eCommerce industry greatly in recent years.
This approach entails a business giving a consumer credit, who then is given a predetermined period to pay back the loan in installments. When compared to receiving credit card approval, it is simpler and faster.
Several businesses offer 0% interest on the BNPL loans right at the checkout to allow customers to buy big things in one go. The stats of closing these purchases would drop significantly if customers were required to spend time planning and funding the purchase cost.
BNPL is a great option for:
People who don’t have access to conventional credit products.
Those who need the flexibility to spend within a definite budget.
Multiple Different Payment Options
Everyone benefits more when an eCommerce store provides extra payment alternatives for their customers. Some of the most popular ways of making payments available widely over eCommerce platforms are:
Google Pay
Apple Wallet
PayPal
Traditional contactless methods of using credit and debit card
Crypto payments
Digital banking
Customers are changing their methods of payment to follow the latest trends provided, so giving them additional choices helps the company with an additional appeal. So, vendors can choose from the various eCommerce payment methods based on the popularity and preference of their clients.
QR Codes
It's a smart idea for any company owner looking to enhance the consumer experience to include a QR code for transactions in their website or app.
When selecting a payment option, customers often consider three things: safety, ease, and convenience. Using a QR code for payment may satisfy all three requirements. Here’s how the development of QR codes benefitted the eCommerce industry:
Better and more quickly processed payments
Integrity checks and payment approval system embedded within the security and dependability system
Aids quicker services and payments
Greater efficiency and convenience for remote payments for companies without requiring them to exchange bank information
Convenience and effectiveness improvements for commercial enterprises
Easy availability while maintaining a reasonable price
One-Click Checkout
According to statistics, 80% of the time, people fill their carts with products and leave them abandoned. A multi-page checkout procedure often discourages customers from making purchases because they’re under time constraints. Fintech offers one-click checkouts to the eCommerce industry as a solution to shopping cart abandonment.
Customers who use one-click checkout make purchases by pressing a single button rather than entering information into several forms.
Single-click checkout could speed up and simplify the purchasing process while assisting companies in increasing conversion rates. Consequently, shoppers are less likely to walk away from the checkout process without finishing their purchases.
Democratized Sales Access
By democratizing access to sales, fintech helps smaller companies and independent businesses sell their goods and solutions online. Despite the rapid growth of e-commerce, there still needs to be more financing options available to small and medium international retailers.
Fintech and marketplaces like Shopify and Amazon and influencer marketplaces are working together to enable small companies to sell their goods and services on a massive scale without crossing physical boundaries.
Cryptocurrency and Blockchain Technology
Cryptocurrency and Blockchain are trending FinTech topics. Due to cryptocurrencies, customers may use blockchain-based digital currencies to pay for products and services. Significant eCommerce establishments have implemented these digital currencies as a payment mechanism.
Implementing crypto payments and blockchain technology can encourage more sales for the following reasons:
Eliminates the involvement of financial middleman
Promotes increased security
Quicken transactions
Can ensure product delivery
Decrease shipping costs
Provide supply chain transparency
Easily avail receipts and warranties
Conclusion
FinTech contributes many intriguing payment trends that enhance e-commerce Payment Processing and support the sector’s expansion.
Fintech has made it easier for consumers to complete their transactions and has helped businesses sell their goods more effectively and reach a wider audience. Essentially, all the involved parties benefit from the advancement of fintech.
After reading this blog, it can be assumed that the two sectors co-evolve and show signs of introducing more cutting-edge products and services in the following years to offer clients accessibility and convenience.
