How e-Commerce & Online Payments Will Change Post-COVID
As a result of the pandemic, most customers have gotten accustomed to online payments and e-commerce, which means all companies must adapt to this trend and the changes that lie ahead. Come read our blog to learn more.
The COVID-19 pandemic has changed the digital landscape significantly, especially e-commerce and online payments. With retail stores and bank branches closing, consumers had no choice but to go online. Even those who had previously avoided e-commerce or online banking were forced to go online to get their necessities. Such shifts were particularly visible in the stock prices of companies like Amazon and Shopify.
The E-commerce Boom
Businesses need to adapt to this change. According to the consulting firm McKinsey, 59%
of consumers now have higher expectations for online customer service than they did before the
COVID-19 pandemic. This means businesses need to create user-friendly online channels and deliver better services than their retail stores, which are not expected to fully reopen anytime soon.
But simply launching an online shop won’t cut it because 75% of online shoppers expect a consistent experience across multiple sales channels. Hence, businesses have to manage multiple touchpoints and create brand and service consistency, for example, on social media and retail and online shops. People don’t just buy a product; they also pay for a positive experience. That’s why businesses will have to focus more on the online shopping experience than pre-COVID.
Online Payments
The same trend is true for online payments, and cash is on the back foot because of the increasing popularity of e-commerce. During the pandemic, people have learned that they don’t need a physical bank branch to manage their financial affairs. They can instead do most simple day-to-day transactions from their homes.
And that’s not a new financial activity. Before the pandemic, 80% of customer touchpoints in banking occurred via digital channels. That trend has only accelerated as a result of the pandemic.
Moreover, the McKinsey survey found that 87% of customers are not ready for an entirely human-less bank. But where human touchpoints remain crucial is more for consulting services such as financial advisory or retirement planning. In terms of payments, online has already become the standard.
Consumers are also trying out new payment methods while purchasing from e-Commerce websites, for example, using services such as PayPal or even cryptocurrencies, although the latter remains a niche phenomenon in e-Commerce. Customers typically favor those tools because of the strong protection against fraud losses.
When it comes to international payments, payment services such as TransferWise, Stripe, or Paypal are gaining traction, as they make it easy for users to conduct transactions.
E-commerce and payments markets are moving fast, and people can expect more innovation and disruption in the years ahead. Certainly, that’s a space to watch!
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