# What’s next for eCommerce? Payment trends shaping the industry Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-17 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: How Localised Payments Drive Revenue Growth in 2022 Meta Description: Learn how merchants can increase revenue by localising payments and adopting alternative methods like BNPL and digital wallets in the evolving eCommerce URL: https://financedigest.com/whats-next-for-ecommerce-payment-trends-shaping-the-industryhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1311433026-1736815715924-compressed.jpg) **![Nikhita Hyett, EU MD of BlueSnap](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/11062021-nikhita-hyett-bluesnap-1736815715993-compressed.jpeg)** **By:** Nikhita Hyett, EU MD of [BlueSnap](https://home.bluesnap.com/) The payments industry is revolutionising eCommerce. Powered by evolving consumer needs and global connectivity, we are seeing more merchants experiment with payment technoloy innovations. Why? Online merchants have recognised the [importance of the payment experience in eCommerce](https://www.financedigest.com/four-reasons-whycloud-based-inventory-management-is-important-for-your-ecommerce-business.html "Four reasons whycloud-based inventory management is important for your ecommerce business"). With [over a quarter](https://www.oberlo.co.uk/statistics/how-many-people-shop-online) of the global population shopping online, merchants are quickly realising that payments are an important revenue centre they can optimise. Historically, payments have been viewed as an “it is what it is” situation, perceived as a cost centre that shrinks business margins. But, thanks to innovations in [payment technology](https://www.financedigest.com/from-the-experts-5-payment-technology-trends-to-look-out-for-in-2016.html "FROM THE EXPERTS: 5 PAYMENT TECHNOLOGY TRENDS TO LOOK OUT FOR IN 2016"), the payment experience has evolved into a revenue centre – where businesses profit from optimisation. Whether it’s localising payment options at checkout or offering customers more ways to pay, [businesses are leveraging payment technology](https://www.financedigest.com/technology-is-a-tonic-for-late-business-payments.html "TECHNOLOGY IS A TONIC FOR LATE BUSINESS PAYMENTS") to open up new revenue streams in 2022. **Localised [payments are reducing](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?") costs** The pandemic has brought the world closer than ever before but selling internationally remains complicated in 2022. With the rise in interchange fees in the US this April, and a hike in fees for transactions between the UK and European Economic Areas post-Brexit now in play, merchants [around the world](https://www.financedigest.com/around-the-world-in-mobile-payments.html "Around the world in mobile payments") are facing an unenviable choice: absorb these increased costs or pass them on to customers in the price of products or services – a move that could deter future sales. With cross border sales predicted to account for [20% of global eCommerce in 2022](https://bit.ly/3ssVOxM), the impact of higher fees will be felt across the business community in the form of decreased authorisation rates and increased costs. There’s a misconception with fees that ‘it is what it is’ and there’s nothing merchants can do to increase cross-border conversions. But there is another way. By partnering with paytech providers, sellers can avoid [cross-border fees](https://bit.ly/3ssVOxM) altogether in 2022, and most importantly save money. That is, merchants can leverage a network of local banks through these [payment](https://www.financedigest.com/5-ways-banks-can-compete-in-payments.html "5 ways banks can compete in payments") processors to route transactions via banks in the same region as the cardholder. By localising transactions in this way, merchants not only reduce [cross-border fees from card issuers but increase 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") authorisation, since banks are more likely to approve purchases that are made locally. To increase authorisation rates, we will see more merchants take advantage of local currencies and [payment methods](https://www.financedigest.com/freelancer-payments-methods-what-you-should-know.html "Freelancer Payments Methods: What You Should Know"). Failing to do so would be an unnecessary barrier to increased revenue as those using local currencies are reporting a [12% increase in sales](https://bit.ly/3ISiop3). The same goes for payment methods. Local payment methods such as the EU’s SEPA or Boleto in Brazil makes consumers more [confident](https://www.financedigest.com/how-the-epa-plans-to-boost-confidence-in-the-uk-payments-industry-post-brexit.html "How the EPA plans to boost confidence in the UK payments industry post Brexit") in their payments. Hence its growing importance to merchants who are looking to streamline the payment experience. Effectively localising global payments is now a must for international sellers looking to capitalise on the explosion of e-commerce post pandemic. **Alternative payment methods are the new normal** As the pandemic continues to put pressure on consumer spending [power and scrutiny on the in-person payment experience](https://www.financedigest.com/app-based-insurance-cover-for-millennials-possessions-and-experiences-back-me-up-powered-by-ageas.html "APP-BASED INSURANCE COVER FOR MILLENNIALS’ POSSESSIONS AND EXPERIENCES: ‘BACK ME UP’, POWERED BY AGEAS"), alternative payment methods such as Buy Now Pay Later (BNPL), digital wallets, and others are becoming the norm in 2022. But what does this trend mean for merchants? With the prominence of BNPL rising over the past 18 months, merchants are expected to build on this convenient shopping method offering instalment [payments to customers](https://www.financedigest.com/2019-year-customers-take-control-payments.html "2019: The year customers take control of payments"). In a post-Covid world, instant gratification has become the staple of eCommerce with consumers shopping on multiple channels from the comfort of their home. To [meet this demand merchants need to consider the alternative payment](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS") methods that are most convenient for international shoppers. [Payment methods such as digital](https://www.financedigest.com/italys-nexi-signs-digital-payments-deal-with-tims-olivetti.html "Italy’s Nexi signs digital payments deal with TIM’s Olivetti") wallets, cryptocurrencies and bank transfers have been the most popular and growing methods amongst global merchants. The number of digital wallet users is predicted to reach up to [4.4 billion by 2025](https://bit.ly/3uGIB5p), meaning global merchants must take advantage of this growing space. Every alternative payment method may not be crucial for your target market, but it’s important to [understand what your customers want to use and then let that information guide](https://www.financedigest.com/a-brits-guide-to-understanding-commodity-trading.html "A Brit’s Guide to Understanding Commodity Trading") your payment offerings. **Embedded payments on the rise** In 2022, we are seeing embedded [payments gain popularity amongst software companies and automotive industry](https://www.financedigest.com/4-payments-industry-predictions-what-will-disrupt-the-market-in-2022.html "4 Payments Industry Predictions – What Will Disrupt the Market in 2022?") players. But what are embedded payments? Under the umbrella of embedded finance, embedded payments is when software companies build payment functionality into their platforms, allowing their customers to have one cohesive experience within all aspects of their application. Software companies are particularly seeing the [value of embedded payments](https://www.financedigest.com/2021-predictions-realising-the-value-of-payments-transformation.html "2021 Predictions: Realising the Value of Payments Transformation") and its quickly becoming integral to their revenue maximisation. This comes as no surprise as software companies that embed payments in their platforms see a [two-to-five times](https://bit.ly/3uGIB5p) increase in revenue per customer. To better visualise embedded payments, think of [SchoolsBuddy](https://bit.ly/3tJONrb) – the school-to-home management system – integrating payments into their platform. By doing so, they are able to [boost their payment acceptance system and create](https://www.financedigest.com/4-tips-for-creating-a-calm-workspace-to-boost-productivity.html "4 tips for creating a calm workspace to boost productivity") more consistent payout schedules. Therefore eliminating a key bottleneck faced by those in the education sector. This also makes payments more convenient for parents as they can organise tuition, field trips and other extracurriculars all in one place. Because consumers now have access to these additional features from a trusted brand they get the ultimate convenience as it reduces friction and risk whilst increasing value. As such, online merchants are integrating more financial capabilities with their online environments to create seamless experiences. However, the resource costs and risks of implementing an in-house [solution are the key](https://www.financedigest.com/exploring-the-key-features-of-bnpl-solutions.html "Exploring the key features of BNPL solutions") barriers most software platforms (SaaS) are facing. That being said, a [strong payment](https://www.financedigest.com/the-late-payments-toolkit-how-to-keep-the-cash-flow-strong.html "THE LATE PAYMENTS TOOLKIT – HOW TO KEEP THE CASH-FLOW STRONG") partner is key to successfully implementing embedded payments with minimal risk. When looking for a payment partner it’s important to look for one that lets you brand your payment offerings and customise payment flows and offers. **Payment optimisation means profit** A smooth consumer journey doesn’t exist without an optimised payment experience. As 57% of today’s online shoppers make purchases from international businesses, online merchants shouldn’t miss out on the opportunity to elevate their global presence. Software providers are seeing the [profit capabilities and now is the perfect time for others to leverage these trends](https://www.financedigest.com/quantamental-investment-trends-to-make-profits-through-creative-skills.html "Quantamental Investment Trends to Make Profits Through Creative Skills") to their advantage. Embedded payments and other alternative payment methods are at the forefront of today’s eCommerce evolution. And, adopting these [trends will be the key](https://www.financedigest.com/4-key-financial-trends-as-we-approach-2021.html "4 Key Financial Trends as we Approach 2021") to capturing more of an ever-growing global customer base. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---