Payments Market Watch: eCommerce 5 latest trends in 2023

Payments Market Watch:

5 trends for 2023

Payments Market Watch: eCommerce

5 trends for 2023

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 online eCommerce, particularly for complex models like marketplaces, the payment provider role has evolved from service provider to strategic partner, helping merchants drive customization, improve conversion, and optimize performance.

Here are five payments trends to watch:

1 Mobile shopping drives payment simplicity

Mobile commerce is 73% of the eCommerce market

27%

73%

Payments, therefore, need to be ultraconvenient and simple for on-the-go shopping

4.4 billion global consumers will shop with a digital wallet by 2023

Mobile purchases have the highest rate of abandonment at 86%

Tips:

Create a mobile-optimised customer journey with the simplest payment process

Include mobile payment options like ApplePay and AliPay for better conversion

Lower the number of clicks to payment to avoid losing sales

2 Embedded finance increases

customer engagement

Embedded finance revenue forecast

Embedded financial services, while not new, will become more widely available across multiple consumer touchpoints. These include retail, insurance, and travel. Examples could include a travel operator providing insurance or a retail business offering branded credit cards.

88% percent of companies that implement embedded finance report increased engagement, and 85% say that it helps them acquire new customers.

Tips:

Create stickiness with a branded card. Give your users the ability to pay for their day-to-day purchases with your branded Visa/Mastercard debit and prepaid cards

Diversify your revenue streams with iBanking. Check if your PSP can set you up with virtual IBAN quickly, avoiding lengthy processes and time-consuming KYC checks

3 Payment Orchestration (PO) gives merchants more control

Complex, multi-vendor payment stacks are now an old-fashioned strategy. Adopting payment orchestration, meanwhile, through one holistic payments partner gives online sellers more control over their entire payment ecosystem. Removing the complexity of juggling multiple providers lowers fees, improves visibility, and unifies data streams.

The PO market will grow 20% annually between 2021 and 2026

Tips:

Use a PO provider to manage and optimize your entire payment stack, boost acceptance, increase security, reduce declines, and capture more revenue

Take full control over your payment ecosystem with business insights and realtime reporting in one dashboard

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, aggregated payment data to identify why your customers fail to complete their purchases

PO value will reach USD 4800 million by 2027

4 Online bank transfers reduce costs and chargebacks

Globally, over 70 billion transactions were conducted via an instant payment system in 2020, and this figure is predicted to reach 199 billion by 2024.

This growth is being driven predominantly by two factors; greater connectivity to the RTP network and a growing preference for direct bank transfers by consumers and businesses generally.

Tips:

Integrate direct bank transfers into your payment stack, if you haven’t done so already

Lower your costs with bank transfers — no card networks are involved so interchange fees are eliminated

Access multiple open banking providers through one PSP to insure best tech and geography coverage

5 Card schemes introduce instalment payment options in stores and online

The global payment landscape is increasingly local in terms of preferred methods, currencies, and regulations. If your customers’ card transactions are declined, offering more methods can avoid losing the sale.

According to Visa, payment instalments represented a USD 1.6 trillion market value in 2020 and are up 5% year on year. In contrast, credit card expenditure declined by 4% globally.

Other research indicates that 6% of consumers

abandon carts because of a lack of payment options, while 18% give up because of price. Instalment payments boost conversion rates as well as improve repeat sales, accelerating merchants’ revenue.

While BNPL options like Klarna already exist around the world, now traditional card schemes like Visa will soon allow consumers to choose Instalments at some of the largest retailers, including Simons, Canada Computers, Soft Moc, and Trévi in Canada.

Tips:

Work with a payments partner that lets you scale up your available payment methods easily

Check if you can leverage a wide network of acquiring partners to accept payments locally anywhere in the world

Find out your payment partner’s level of support for instalments for younger consumers who dislike credit cards

See how other retailers are optimizing their payments:

“From the outset, Nuvei understood the complexity of our business model and displayed the agility to make our pay-ins and payouts more straightforward, faster, and more secure.”

Leonardo Costa Head of Payments & Fraud

Watch the video for the full story

About Nuvei:

At Nuvei, we’re ideally placed to spot emerging payment trends. With future-proof and customizable technology, we process billions of dollars for the world’s preferred online merchants.

Nuvei 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 580 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

https://nuvei.com/industries/online-retail/

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