Payments
5 latest payment trends
Market Watch: eCommerce
Payments Market Watch: eCommerce
5 latest payment trends
As more merchants are turning to their payments strategy to accelerate business growth, many are adopting the latest payment trends like one-click mobile payments, embedded finance, and online bank transfers to reduce costs and boost revenue.
In eCommerce, particularly for complex models like marketplaces, the payment provider role has evolved from cost center to strategic revenue driver, helping businesses enhance customization, improve conversion, and optimize performance with payment technology.
Here are five payments trends to watch:
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1 Mobile shopping needs frictionless payments
Global mobile commerce sales will reach US$4.5 trillion by 2024. By 2027 they will account for 80% of total eCommerce.
20%
80%
80% of all online shoppers have made a purchase using their mobile phone in the last 6 months.
90% believe that mobile shopping experience needs to improve. Making payments ultra-convenient will increase customer satisfaction and increase your sales.
Tips:
Optimize your payment page for mobile devices with fast and seamless payment process
Integrate digital wallets preferred in your target market for better conversion: ApplePay, PayPal, AliPay and more
Speed up sales by reducing the number of clicks to payment
Offer one-click purchases for returning shoppers
2 Conversion optimization
US$260 billion of total lost eCommerce sales can be recovered with better payment journey alone.
More businesses globally transform payments from a cost center into a revenue generation.
Tips:
Gain up to 35% conversion rate increase by optimizing payment experience
Work with a payment partner who offers decline recovery features and cascading transactions to the most relevant acquirer
Take a strategic approach to SCA – avoid lost sales by reducing the number of times you authenticate low-risk customers
eCommerce businesses lose US$18 billion in yearly revenue due to cart abandonment. 0 20 40 60 80 100 Top reasons for customer drop-off 90% 55% 48% 41% shopping pages are too slow re-entering payment details costs are not transparent complicated checkout process
3 Offering wider range of payment options
57% of all online shoppers report shopping internationally.
By 2028, it is expected that
33%
of all eCommerce spend will be cross-border
eCommerce is becoming increasingly borderless, making region-specific payment methods a must for maintaining competitive edge.
Tips:
Tailor your payment page to your audience’s preferences, including local payment methods, currencies and languages
Work with a payment platform that has direct acquiring in all of your target markets for higher approval rates
Leverage instant payment options such as Open Banking and RTP for faster sales with zero chargebacks
4 Network tokenization
The tokenization market is expected to expand from $2.3 billion in 2021 to $5.6 billion by 2025.
On average, network tokens can increase authorization rates by more than 2% and reduce occurrences of fraud by almost 30%.
+2%
-30%
Network tokenization facilitates more seamless and secure digital transactions, which is expected to fuel the market growth and higher conversion rates.
Tips: Integrate tokenization to ensure reduced the risk of data breaches and increased authorization rates
Use tokens in a way that doesn’t negatively impact the customer experience. E.g. focus on higher-value transactions where the security provided by tokens is more beneficial
Partner with a payment provider who can help you identify areas of improvement with actionable reporting
authorization rates occurrences of fraud
5 Payment Orchestration (PO) = streamlined operations and reduced costs
40% of eCommerce businesses are already considering a PO platform to enhance conversion rates and reduce the cost of payment acceptance.
Tips:
The PO market is set to grow from $569 million in 2023 to $1.2 billion by 2030.
$1.2 billion 2030
$569 million 2023
Use an integrated PO provider to optimize your entire payment stack, boost acceptance, increase security, and capture more revenue
Take full control over your payment ecosystem with setting your own rules for transaction routing
Choose a payment partner that offers a reporting tool with real-time authorization and batch data broken down by card brand, payment method, geography
Use comprehensive payment data to identify why your customers fail to complete their purchases
Why Nuvei?
Acquirer agnostic
Global gateway and technology
Servicing over 200 markets worldwide
600+ local and alternative payment methods
150+ currencies
Automatically detect customer geolocation and display the relevant language and currency
One-click payments for return customers
Recover declined transactions using our suite of recovery tools and watch your revenue grow
About Nuvei:
Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services.
Connecting businesses to their customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies and more than 600 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.
For more information, visit www.nuvei.com
Contact:
EMEA
APAC
LATAM
Theodore Law
NORTH AMERICA
Ella Koren
*Sources: Statista,
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Global Data, Baymard Institute, Shopify, The Paypers, BRC.org, ResearchAndMarkets.com, Juniper Research, PYMNTS.com, Worldline, Truelayer