The fintech industry is constantly evolving and transforming the way transactions occur. E-commerce stores are excitingly implementing a myriad of payment gateway integrations and allowing flexible ways for customers to pay.
However, as the world welcomes more flexible ways for e-commerce payments, Merchant’s boon for the success of processing payments has become slightly more expensive. Additionally, as younger consumers join the market, the types of payments they utilize have also been shifted.
In this blog, Unity Payments will give a meticulous blueprint for the future of e-commerce payment and trendy E-commerce payment processing solutions.
The Current State of E-Commerce Payments
For many years, shopping online has become effortless due to the dominance of credit cards. However, times are changing, and the utilization of credit cards is gradually plummeting, therefore giving birth to new payment methods. Let’s look at payment trends and how they are contributing to e-commerce businesses.
Popular Payment Method That Is Losing Touch
According to a popular survey, the majority of online shoppers prefer two payment types – Credit cards (22%) and digital wallets (50%)- for their online purchases.
Undoubtedly, Credit cards are far more flexible in terms of payments. However, in exchange for flexibility, e-commerce merchant accounts experience hefty monthly or per transactional fees that disturb the fiscal flow.
For that exact purpose, keeping a close eye on new payment industry trends will allow you to shake off your cobwebs and offer far more convenient and easier payment methods that will complement your business.
Trendy Payment Processing Solutions to Look Out For
Proliferation of Digital Wallets
Digital wallets are significantly improving their pace and becoming a popular instrument for paying for shopping. In accordance with Juniper research, digital wallet transactions are predicted to proliferate by 77% by 2028 – totaling a cash flow of more than $16 trillion. As we’re months away from 2025, we’ve already witnessed a significant rise in the use of digital wallets from the start of 2024.
Artificial Intelligence Is the Next Best Thing
AI has become part of our lives, and we love to seek help from it. Nevertheless, AI is best recognized for processing huge amounts of data within seconds and has the aptitude for analyzing user patterns. Similarly, artificial intelligence can effortlessly identify how transactions occur and attempts to revolutionize the methods for security and tailor the fintech industry.
Several stores use e commerce payment processing solutions that deploy AI-powered methods, automate invoice processing payment matching, and proactively minimize manual error.
If we take Amazon as an example, the e-commerce giant provides a cutting-edge yet friction-free payment processing solution to facilitate a bolstered customer experience. The organization provides pay-by-palm technology that allows users to easily pay by scanning their palms on point of sale systems in selected stores.
This contactless payment strategy utilizes AI, machine learning, and biometric authentication to improve shopper’s pace during checkout.
Embedded Payments
Did you know embedded payments are predicted to jump over the value of $138 billion by the end of 2026? Embedded payments are a revolutionizing digital payment trend that lets you buy things directly through the platform you’re already using. These e-commerce payment processing solutions are smartly integrated into software that substantially improves the checkout experience.
A few of the embedded payments are described as a method utilized by Uber, Doordash, and even in-game purchases that allow you to gain access to the additional content without you leaving the game.
By implementing embedded payment strategies, you can mitigate the unnecessary hurdle of redirection to the external interfaces. Additionally, these methods have been proven to reduce fraud risks. Therefore, it’s not a mystery that these methods will take a giant leap in the coming years.
The Rise of BNPL
As inflation soars throughout the country, people are challenged to purchase their desired items on a budget. However, the trend of Buy-Now-Pay-Later is significantly changing the rhythm of e commerce payment processing solutions. This payment type is an alternative to a personal loan that enables your customer to divide their payment into multiple yet easy installments.
However, the terms of BNPL may vary; some include interest, while others divide the purchases into various interest-free automatic withdrawals.
According to statistics, younger individuals prefer BNPL to purchase items that lie under $100 league to effortlessly pay in multiple installments in case of budget complications.
Blockchain & Cryptocurrency
In the past few years, the use of blockchain technology for payment has significantly increased, and the technology’s transparency is one of the reasons for its popularity.
Blockchain decentralized quality forms an imperative defense against deceitful acts, as each transaction is accurately recorded and documented on a public ledger. Therefore, these e commerce payment processing solutions provide more openness and transparency than a traditional payment gateway integration and foster trust and confidence among customers.
Conclusion
Implementing and deploying the newer, more convenient, and more flexible e-commerce payment processing solutions has become pivotal in helping you cross the door of success. These above trends will allow you to comprehensively identify the most preferred payment method according to your business and may improve customer experience in the best possible manner.
