By Kenny Tsang, industry expert and Managing Director of PingPong Payments, delves into how FinTech is driving growth in the eCommerce sector.
FinTech innovation has already irreversibly altered the eCommerce market. What was once considered a complex way of managing finance is now used by millions of businesses globally. In fact, among traditional financial organizations, 82% plan to increase collaboration with FinTech companies in the next three to five years. FinTech is driving growth in the sector by making payments simpler than ever before.
As time has passed, sellers have come to realize that it is easier to accept and integrate technology into their daily operations to optimize their bottom line and their client base. Future eCommerce leaders will be those that understand where the best opportunities lie. Businesses must ensure they make the best of financial innovation for their eCommerce business.
International Expansion, the Growth of Cross-Border Commerce
FinTech has turned the global eCommerce marketplace into a thriving one. Over the past few years, digital transformation across the sector has helped both sellers and buyers to look beyond geographical boundaries, and global payment solutions have become a gateway to international expansion.
Emerging markets are projected to play a massive role in the future of eCommerce. To support sellers who are looking to expand their business, an end-to-end ecosystem of cross-border transactions has become critical to international success. FinTech has disrupted the payment processing industry, making it easier and faster than ever for eCommerce businesses to accept payments from customers all over the world. A trustworthy cross-border payment partner ensures that suppliers receive same-day payments, eliminating delays or disruptions to payments and goods on either end of the transaction. With new cross-border payment solutions that enable overseas operations, supplier payments in local currencies, and VAT payments made in real-time, sellers must start to look beyond borders.
Building Trust
FinTech is helping businesses all around the globe to boost their trust in online payments, but the convenience for buyers is what is making it become increasingly popular. There is no need to stand in queues at banks: customers nowadays benefit from being able to conduct transactions from the comfort of their own home. Swift transfers are not only essential to global suppliers, but they also increase seller-supplier trust, and build business relationships. The fact is that the average number of days it takes a company to pay a supplier has reached 66 days around the world, whereas digital payment platforms help build trust among consumers by providing them with easy payment interfaces. FinTech companies and their tools are making banking and purchase transactions easier.
Moreover, customers care about privacy, particularly when it comes to their financial information. FinTech companies must ensure that every transaction carried out on their platform is protected with a strong and aligned data protection and compliance strategy. In the process of building seller-supplier trust, FinTechs have introduced revolutionary features that are protecting users more than ever.
One of the biggest mistakes sellers often make is overlooking future supply chain disruptions. For the supply chain, FinTechs act as intermediaries in facilitating transactions between a company and its vendors. They enable greater liquidity and less variability in scheduling and disbursing payments. It is essential to understand that companies that utilize modern digital tools to enhance their supply chain are more likely to achieve resilience, agility, and sustainability.
In the eCommerce race that most cannot afford to lose, many have started diversifying their supply chains to mitigate financial repercussions. Instead of assuming there will not be interruptions to one supply chain, businesses must consider other sources. With an abundance of cross-border services, such as parcel consolidation, global fulfillment, and payment providers, sellers can start exploring international markets. Diversifying the supply chain with the right payments provider can help sellers deliver to the right customers at the right time.
Faster, and Faster delivery
The ‘new normal’ of instant delivery is as little as a few hours and this has challenged sellers to rethink their customer service approach. A PWC consumer survey found that 88% of consumers are willing to pay for same-day (or faster) delivery services. As faster and faster delivery is becoming a competitive advantage, pairing with the right FinTech companies will make it easier for sellers to manage deliveries. FinTech innovations have already improved eCommerce by making all of the processes involved in online shopping faster, easier, and simpler, as well as making it more accessible around the world.
As the world changes, consumer preferences, schedules, and expectations are also rapidly affecting the speed and manner in which products are delivered. The FinTech industry’s breakthroughs will make it easier for businesses to move away from the outdated weeklong deliveries, while offering customer satisfaction at the same time.
