# How FinTech is becoming the driving force of eCommerce
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-15
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: How FinTech is Driving Growth in the eCommerce Sector
Meta Description: Explore how FinTech is revolutionising payments, global expansion, and trust in eCommerce. Learn why businesses need to embrace financial innovation for
URL: https://financedigest.com/how-fintech-is-becoming-the-driving-force-of-ecommercehtml

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_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.](https://www.pwc.com/bb/en/press-releases/fintech-partnerships.html)  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](https://www.financedigest.com/seenthis-launches-ground-breaking-segment-by-segment-optimization-technology-for-display-advertising.html "SeenThis launches ground-breaking segment-by-segment optimization technology for display advertising") their bottom line and their client base. [Future eCommerce leaders](https://www.financedigest.com/young-leaders-forum-jamal-edwards-on-the-past-present-and-future.html "Young Leaders Forum: Jamal Edwards on the past, present and future") will be those that understand where the best opportunities lie. Businesses must ensure they make the best of [financial](https://www.financedigest.com/how-to-create-financial-goals-for-your-business-in-2021.html "How To Create Financial Goals For Your Business In 2021") innovation for their eCommerce business.

**[International Expansion](https://www.financedigest.com/managing-trade-credit-and-insurance-in-the-context-of-international-commerce-expansion.html "Managing trade credit and insurance in the context of international commerce expansion "), the Growth of Cross-Border Commerce**

FinTech has [turned the global](https://www.financedigest.com/how-to-turn-a-uk-startup-into-a-global-success.html "How to turn a UK startup into a global success ") 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](https://www.financedigest.com/volkswagen-to-invest-in-mines-in-bid-to-become-global-battery-supplier.html "Volkswagen to invest in mines in bid to become global battery supplier") a gateway to international expansion.

Emerging [markets are projected to play a massive role](https://www.financedigest.com/the-valuable-role-ecommerce-social-media-marketing-will-play-in-keeping-businesses-afloat-during-lockdown.html "The valuable role Ecommerce/Social Media marketing will play in keeping businesses afloat during lockdown") in the future of eCommerce. To [support sellers who are looking to expand their business](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world"), an end-to-end ecosystem of cross-border transactions has become critical to international success. FinTech has disrupted the [payment processing industry](https://www.financedigest.com/whats-next-for-ecommerce-payment-trends-shaping-the-industry.html "What’s next for eCommerce? Payment trends shaping the 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](https://www.financedigest.com/the-end-of-payments-as-we-know-it.html "The end of payments as we know it") of the transaction. With new [cross-border payment](https://www.financedigest.com/why-blockchain-could-represent-the-future-of-cross-border-payments.html "Why blockchain could represent the future of cross-border payments") 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](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs") 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:](https://www.financedigest.com/kpmg-stands-by-audits-of-silicon-valley-bank-and-signature-bank-ft.html "KPMG stands by audits of Silicon Valley Bank and Signature Bank – FT") 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](https://www.pymnts.com/news/b2b-payments/2018/late-payments-insolvency-trade-credit/), whereas digital payment platforms help build trust among consumers by providing them with easy payment interfaces. [FinTech companies and their tools are making banking](https://www.financedigest.com/fintech-v-the-banks-uneasy-bedfellows-or-a-match-made-in-heaven.html "FinTech v the Banks: Uneasy Bedfellows or a Match Made in Heaven?") 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](https://www.financedigest.com/2023-fintech-prediction-secure-and-private-data-usage-is-key.html "2023 FinTech Prediction: Secure and Private Data Usage is Key") protection and compliance strategy. In the [process of building](https://www.financedigest.com/li-cycle-to-build-french-battery-processing-facility.html "Li-Cycle to build French battery processing facility") seller-supplier trust, FinTechs have introduced revolutionary features that are protecting users more than ever.

[**Diversifying Supply Chains**](https://www.financedigest.com/ge-shares-slump-as-supply-chain-inflationary-woes-threaten-profit-outlook.html "GE shares slump as supply chain, inflationary woes threaten profit outlook")

One of the [biggest mistakes](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") sellers often make is overlooking future supply chain disruptions. For the supply chain, [FinTechs act](https://www.financedigest.com/fintech-and-compliance-managing-the-eternal-balancing-act.html "Fintech and compliance: Managing the eternal balancing act") as intermediaries in facilitating transactions between a company and its vendors. They [enable greater](https://www.financedigest.com/iris-acquisition-enables-accountants-to-add-greater-value-to-their-clients.html "IRIS acquisition enables accountants to add greater value to their clients") 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](https://www.financedigest.com/mcdonalds-milkshakes-off-the-british-menu-after-supply-chain-issues-2.html "McDonald’s milkshakes off the British menu after supply chain issues") 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](https://www.financedigest.com/g7-finance-leaders-pledge-financial-stability-supply-chain-diversity.html "G7 finance leaders pledge financial stability, supply chain diversity") repercussions. Instead of assuming there will not be interruptions to one supply chain, [businesses must consider](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") 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](https://www.financedigest.com/how-to-bring-immediacy-back-to-the-supply-chain-with-faster-payments.html "How to Bring Immediacy Back to the Supply Chain With Faster 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](https://www.financedigest.com/cloud-migration-for-financial-services-organisations-whats-the-best-approach.html "Cloud Migration for Financial Services Organisations – What’s the best approach?"). A PWC consumer survey found that [88% of consumers are willing to pay for same-day (or faster) delivery services.](https://www.retailtouchpoints.com/resources/88-of-consumers-will-pay-for-same-day-delivery) 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](https://www.financedigest.com/how-partnerships-fuel-fintech-innovation-and-help-banks-deliver-a-better-customer-experience.html "How Partnerships Fuel Fintech Innovation and Help Banks Deliver a Better Customer Experience") 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](https://www.financedigest.com/business-finance-the-fintech-evolution.html "Business finance: the fintech evolution") to move away from the outdated weeklong deliveries, while offering customer satisfaction at the same time.


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