Digital Payments & E-commerce- A New Trend
In this growing era of smartphones, digital payments have widely expanded. This expansion of digital payments. Your mobile phone is a vital tool of everyday life which is now becoming an eCommerce tool as well. With your mobile, you can pay anytime & anywhere.
This article elaborates on how digital payments supported eCommerce businesses.
What is Digital Payments for Ecommerce?
To understand digital payments for eCommerce, first, you have to understand what mobile payment is.
digital Payments are payments done through your mobile phone. Whereas digital payments for eCommerce are selling and buying goods through mobile.
There is a drastic change in online shopping from PC to mobiles because of digital payment facilities. These services make shopping easy and add up to eCommerce sales and grow your business.
How do Mobile Payments Work in E-commerce?
Types of Digital Payments in E-Commerce
1. Traditional Method: This method of payment is the oldest form of payment when you enter your debit/ credit card details in a browser for payment against your order. It allows customers to store their details to checkout faster in future.
2. Mobile Wallets : Mobile wallets are another type of payment. Mobile wallets remove the need to re- enter payment details again and again. It can be used in house instead of plastic cards. You don’t need to carry it just one click and your purchase is done.
3. Online Wallets: Popular online wallets like phone pay, paytm etc. also used to successfully pay online. It allows users to save their details to a third party. To proceed for payment you simply have to log into your account and process payment. People are opting for this service as of its high security.
Why is Digital Payments Important in E-Commerce?
As we all know that the mobile devices dependency is increasing day by day, digital payments become significant in the ecommerce industry. Every ecommerce needs to adapt to this technology because of the following reasons.
1. Payment Security : Digital payments are offering secure payments. If you’re concerned about sharing your debit & credit card details then this method suits you. It allows you to quickly pay online without sharing any details.
2. Convenient : digital payments made the ecommerce shopping experience more convenient. People have ample time nowadays so they want easy and quick methods to finish online shopping. No one has time to go home or process their shopping on their computer, so mobile suited them best. It seems more convenient to them as they can process it anytime or anywhere.
3. Faster Payment Services: Everyone likes to hear how quickly something works, and luckily, all of these digital payments can be completed with the touch of a button. You can complete a purchase in seconds when you use digital payments. This system stores your payment info and helps you to pay more quickly for further payments.
4. Increase Conversion: A greater option to payments decreases turbulence during checkout. This increases more conversion as customers don’t need to spend extra minutes for the checkout process.
Drawbacks of Mobile Payments
As every good thing comes up with a bad .Mobile payments also have some drawbacks.
1. As we all know, digital fraud is increasing day by day, so some feel fear of sharing their personal information to payment apps. They gain fear if your phone is hacked then their information will be leaked.
2. Another cons is that there is no cashback paid through mobiles.
3. In this digital era some businesses don’t have these payment options. They don’t offer it at all.
Future of Mobile Payments in E-Commerce
Mobile payments are changing the world for both the customers & buyers. Many businesses start changing their business model to implement this change successfully.
Customers are becoming more demanding in terms of payment method preferences, and they expect businesses to meet those expectations or potentially lose people as loyal customers.
Digital Payments is a convenient way to make a purchase without carrying a physical wallet. Mobile-first payment platforms also make it simple to connect with online payments and corporate planning software.
Mobile payments help businesses to get a larger and global market. Due to the increasing no. of mobile devices and internet availability, digital payment are easily accessible. Because of the simple function of mobile payment applications, everyone can easily access it.
There is a rise in the cashless society due to the coming of digital payments. Many of the reports said that digital payments will drive growth in the ecommerce sector up to 19.4% from 2021 to 2028. This creates a new benchmark of expectation in the ecommerce industry.
The rapidly evolving digital payments may be difficult to understand but the development associated with it has a positive effect on customers and buyers both. It focuses on convenience & security which lead to a massive growth in the ecommerce marketplace of all types of businessmen.
Conclusion
Mobile payments have intensified the ecommerce industry for both buyers & sellers. It has massive growth ahead. The upcoming new trends in ecommerce digitally revolutionized the customer experience of shopping and selling experience of merchants. Digital payments have a vast future in ecommerce marketing.