As the e-commerce industry is booming every year, it is reinventing the purchase process of consumers rapidly. Digital transformation in e-commerce is now forming new customer experiences, creating growth opportunities, and disrupting business models for retailers of all sizes. As per recent research, retail purchases in e-commerce will handle 95% of the total consumer transactions by the end of the year 2040.
The primary distinction between traditional commerce and e-commerce is its scalability and accessibility to the market. Though it can be noted that fintech is now available for both online and brick-and-mortar stores, it is more prevalent in the digital space. Fintech is thus helping eliminate the traditional barriers that have inhibited the e-commerce industry in the past. Additionally, fintech is now enabling businesses to streamline their e-commerce operations by significantly cutting down costs and improvising customer service.
What do E-Commerce and Fintech Have in Common?
Fintech has completely disrupted the payment processing industry, making it faster and easier than ever for e-commerce businesses to directly accept payments from customers globally. Not only has it revolutionized payment options, but also helped in the proper management of finances for e-commerce businesses. For example, it can help businesses to keep a track of their spending, manage their budget, and invest money wisely.
Additionally, fintech has also helped e-commerce businesses to expand into a bigger marketplace and reach out to more customers. The e-commerce application development companies are now understanding the need for offering more convenience to the shoppers and thus coming up with intuitive e-commerce software solutions with an assortment of advanced features.
How Fintech is Reshaping the Future of E-Commerce?
Without fintech technology, it is impossible to think about online purchases of goods and services. Here or some of the ways in which fintech has been revolutionizing the e-commerce industry.
1. Improved Payment Options
Innovations in the field of the fintech industry and its collaboration with e-commerce and other industries have given consumers various options to complete their online purchases virtually from any device in real time and that too, from anywhere in the world and using any currency.
POS credit, mobile wallets, NEFT, cryptocurrencies, and blockchain are some of the results of the latest innovations in the fintech sector that have made online payment processes easier, quicker, and safer.
2. Automated Customer Services
With chatbots coming into existence, it has now become easier for e-commerce businesses to communicate with their customers in real-time. Chatbots are being personalized for providing guidance to individual shoppers based on their individual personas and behavior.
This automated customer service system helps the users in real-time, in case they are facing difficulty in purchasing any product or making payment online. Before the proliferation of chatbots, e-commerce businesses mainly used to rely on manual resources for communicating with their customers which were only prone to errors.
3. Online Payment Security
With constant innovation in the fintech sector, online payments have become more secure than it was years back. With biometric technology and multi-factor authentication, online payment processes are now end-to-end encrypted and secured with an added layer of security that allows customers to lay their trust in the e-commerce site. Customers, these days, are now way more confident when they make online payments whether small or large amounts.
4. International Scalability
Another crucial advantage of fintech is that it allows businesses to reach a larger mass. By leveraging global payment methods, e-commerce merchants can now sell their products to consumers worldwide. This international scalability and flexibility opens up new opportunities for e-commerce businesses of all sizes and helps fuel its growth globally.
5. Quicker Checkout Times
Another benefit of utilizing fintech for e-commerce is the faster checkout time. With the facility of making instant payments, users are now redirected to the payment gateway once they click on the option of making payment. They can save their favorite method of payment along with shipping information and get their order placed with one click.
6. Faster Deliveries
Fintech innovations have improvised e-commerce businesses by bringing in digital transformation, making online shopping faster and easier as well as accessible all around the globe. It has also made e-commerce deliveries faster as customers can now experience same-day delivery services. The faster the deliveries, the better e-commerce merchants make business by offering customers an exceptional buying experience.
Fintech will be the Driving Force of Future E-Commerce Businesses
As the world changes so do consumer preferences and expectations. These expectations are also rapidly influencing the speed and manner in which commerce products are delivered. Customer experience lies at the very heart of e-commerce business growth since today’s customers are demanding frictionless, personalized shopping experience, convenience, speed efficiency, and security.
For the fintech industry, it has now become an utmost priority to constantly evolve itself to more innovative ways for improvising the customer experience, creating a synergistic relationship between both industries that would support economic growth.