12 Aug Trends in digital payments and e-commerce

Posted at 22:13h in Business, E-commerce, Managment, SMEs by
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A rapidly changing world continues to impact consumer behavior, creating new challenges and opportunities.

  1. Digital commerce and connectivity continues to grow exponentially:3B digital commerce users in 2020.
  2. Consumers expect everything to be digital and instantaneous: 64% of consumers prefer digital options over physical ones. 80% among Millennials.
  3. Consumers are increasingly dependent on their connected devices: 1 in 4 consumers looks at their phone at least once every five minutes.
  4. Consumers have a strong affinity for the digital brands they use: 60% more consumers feel an emotional connection to a digital brand.

Consumer trends are creating new opportunities in the digital payments landscape

Growth of payments with enabled devices: 92% of the population is expected to have a Smartphone in 2023, an increase of 73% from 2018

Growth of mobile commerce: The conversion rate among Latin Americans in purchases made through apps is 3 times higher than that of mobile websites.

Increase in the use of applications: It is expected that in 2023, digital commerce transactions carried out with mobiles and tablets, will reach 161 billion USD, growing at a compound annual growth rate of 21% between 2018 and 2023.

Increase in the use of digital devices: Transactions made using devices for personal use are projected to grow at a CARC of 82% between 2018 and 2023, reaching 220 million USD in 2023.

 

Trading Platforms

Website or Proprietary App

Social media

  • Facebook
  • Instagram (Tags, posts)
  • Whatsapp (Catalogs)

 

Marketplace

  • Mercado Libre
  • Find 24
  • Amazon
  • Call it
  • Etsy

 

Website or Proprietary App

Pros

  • Privacy, the store is yours
  • Business intelligence
  • You are in control of your identity and your brand
  • Customers are yours and their information
  • You do not share space with the competition
  • Making your own website is getting cheaper and easier every day
  • You benefit from SEO (optimizing the search engine)

Cons

  • Implementation costs
  • Templates are difficult to customize
  • It is one more task within the company (falls / Maintenance)
  • Results take time

 

It is important to invest in search engine optimization

  • 46% of consumers start their purchases on search engines like Google.
  • Increase quality traffic
  • Improve the position of the company in the Rankings
  • Reduce promotional cost
  • Discover new markets

 

Recommendations for the use of electronic commerce (Muñoz, 2021)

  • Optimize the website for mobile, the greatest growth in purchases is occurring on devices and using a responsive format is the best option.
  • Includes high-quality photos and product demonstration videos.
  • Show testimonials and user reviews, this creates credibility.
  • Post all product information including price.
  • Enables a progress indicator.
  • Auto save the cart when it has been abandoned and send emails remembering the items in the cart.
  • Allow Guest Checkout, if the customer does not want to register, do not restrict the sale.
  • Remove any surprise charges or costs and shipping should be free, just add it to the price.
  • Offer all possible payment options that are relevant and consistent with the platform and scale of your business.
  • Use a clean design and avoid distractions.
  • Displays security badges to build trust in the transaction.
  • Send order confirmation after payment.

 

References

Muñoz, O. (2021). Trends in digital payments and electronic commerce.