Mon, 27-Jun-2022
Tuesday 21 Apr 2020 , 2:09 pm

Glimpse of Emerging Trends in E-commerce Payment Market

The increasing number of banking population and digitalization are the major factors that the e-commerce payment market is flourishing. This article discusses emerging trends in the e-commerce payment market.
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E-commerce payment market is witnessing a tremendous growth across the globe in recent years. This change is happening because of the rising preference for making online payments due to the availability of various online payment methods. Furthermore, the increasing adoption of smartphones and easy access of internet are also propelling the e-commerce payment market growth.

The increasing number of banking population and digitalization are the major factors that the e-commerce payment market is flourishing. As per the research report by The Insight Partners, the global e-commerce payment market is predicted to reach at US$ 64.69 billion by 2025 at a CAGR of 13.1% between 2018 and 2025.

  • Virtual Payment

A virtual payment is an advanced or web-based version of the POS terminal. To make transactions by using this option, device needs connections of networks such as Wi-Fi and LAN to capture customer's bank account details. A virtual POS helps sellers to process orders made by phone call/message, mail, or online. Similar to online retail purchases, a seller enters payment details of customer on web-based virtual POS terminal.

Increasing demand for cashless payment services, government initiatives for digital payment systems, elimination of software and hardware requirements are the main reasons accelerating the virtual payment (POS) market.

  • Adoption of Payment as a Service

The Payment as a Service is a service provided by a company that offers online shopping services and accepts electronic payments. This e-payment method include bank-based payment option such as direct debit/credit card, real-time bank transfer as well as bank transfer based on online banking. In this payment setup, third party service provider allows the merchant to accept payments by wide variety of payment option using single channel.

The payment as a service provides high-quality experiences for customer and services with secure and quick payment process and this factor is driving the growth of the payment as a service.

  • Rising Demand for Solutions and Services for Payment Security

With increasing adoption of digital payments, number of fraudulent activities are also rising. That’s why companies need provide a secure platform for online payment to gain customer’s confidence. Payment security is a framework that helps to reduce fraud and creates a secure payment system. These days the payment security providers are seen focusing on providing an advanced solutions and services to establish a strong position in payment security market. Companies such as Bluefin Payment Systems, Cybersource, Elavon, Index, and Intelligent Payments are already active in the Market.

Impact of COVID-19 Pandemic on E-commerce Payment market

Implementation of lockdown to control the spread has shut all shops, business and forced people to stay at home. To pay bills such as electricity, home rent or shop essential items online, many people are choosing e-commerce payment options. Or even if a person buys stuff from shop or local seller, he/she refuses to pay cash to avoid considering the risk of transfer of coronavirus. So, the number of online payment transactions are surging continuously.

On the other side, sectors like aviation, transportation, and hospitality have huge daily transactions are not operating these days so industry analysts predict that the total value of online payments may be lower for this year.

Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

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