The COVID-19 pandemic accelerated the rise of eCommerce, with an increasing number of customers buying everything from designer T-shirts to boxed macaroni and cheese from the comfort of their desktop computer or mobile device.
Today’s consumers are looking for easy, streamlined ways to shop without ever leaving home. Not only that, but shoppers want a truly frictionless eCommerce buying experience — from the instant they visit a website to the moment the product arrives on their doorstep.
Convenient, modern payment options play a crucial role in that streamlined online shopping journey. Consequently, 2022 eCommerce payment trends reflect the growing demand for an enhanced customer checkout experience and secure payment options.
Here are a few eCommerce payment trends that the most competitive brands should watch for and work to adopt in 2022.
1. Buy Now Pay Later
A growing number of eCommerce shoppers simply do not want to wait to purchase big-ticket items like furniture, appliances and electronics. For those shoppers, the future of eCommerce payment looks bright. The buy now, pay later (BNPL) shopping model is skyrocketing in popularity. In fact, there were 197% more BNPL offers in Q2 of 2020 than in Q2 of 2019.
The industry is expected to grow up to 15 times within the next three years, and it is easy to see why. BNPL platforms like Afterpay, Klarna and more are especially popular among younger shoppers, who are even using the payment method to buy a relatively inexpensive pair of jeans or shoes. These payment options are typically free of interest or fees, making any online product more accessible, whether the buyer has the cash on hand or not.
2. Frictionless Payment Experiences
The pandemic may have given contactless and frictionless payment experiences a major boost in 2020, but the trend is certainly here to stay. About $3.9 trillion in frictionless payments were processed in 2020, and that number is expected to grow to $8 trillion by 2024.
There are new frictionless payment options popping up all the time, with Apple Pay, Venmo and other mobile payment options being increasingly used in retail stores and eCommerce alike. This intuitive form of payment saves customers time and reduces the effort required to make a purchase.
Frictionless payment provides obvious benefits to shoppers, but it offers enticing perks for eCommerce brands, too. Easy, streamlined payment methods help reduce churn and cart abandonment, as well as provide detailed analysis related to customer spending.
Since its initial inception, the destiny of cryptocurrency has seemed uncertain. But as brands like Tesla, Xbox and PayPal begin to accept cryptocurrency as a valid form of payment, more eCommerce businesses will follow their lead in 2022.
Cryptocurrency like Bitcoin offers a number of unique benefits, including low transaction fees, quick processing and ease of purchase for international payment processing. Some consumers prefer the anonymity and user autonomy of cryptocurrency. And the decentralized, peer-to-peer Bitcoin can even be used by those who do not have a bank account, benefiting eCommerce brands by opening their website offerings to a wider customer base.
4. Real-Time Payment
When consumers find themselves strapped for cash, they do not want to have to wait one to three days for their bank transactions to go through. So, when the pandemic left many consumers on a tight budget, the real-time payment trend gained even greater momentum.
As the name suggests, real-time payment allows consumers to transfer funds in seconds, rather than waiting days or even hours for a payment to be processed. These options streamline the checkout experience and are preferred by consumers who want to protect themselves from chargebacks.
Today’s eCommerce brands are beginning to take advantage of real-time payments by using tools like Square, PayPal, BNPL and other payment options that offer instant processing. Online companies can also benefit from the rise of real-time payment in another key way: As more employers pay their staff in real-time, consumers will have quicker access to cash — spending money online without waiting for their paycheck to clear.
5. Voice Activated Payment
Mobile and digital payment options have made it easier than ever for consumers to shop at the click of a button. But the future of the payment industry is taking the process to a new level of convenience with voice-activated shopping.
Smart speakers like Amazon’s Alexa and Google Nest allow consumers to shop simply by uttering a few words — no clicking required. Smart speaker owners report using their virtual assistant at least once a day, using the speaker to browse for new products, create shopping lists, search for product reviews and more.
With a worldwide revenue predicted to exceed $35.5 billion by 2025, voice shopping offers an exciting new opportunity for eCommerce brands. Virtual assistant technology is advancing with every passing year, and 2022 is sure to be a time for more experimentation with this eCommerce payment format. Brands can use the platform to answer questions about pricing, highlight product features and create a truly frictionless, tailored shopping experience.
As the popularity of eCommerce grows, fraudulent activity grows right along with it. Attempted fraudulent purchases have increased by 69% year-over-year, leading eCommerce brands to look for innovative ways to increase security and gain consumer trust.
Biometrics are just one of the many new technologies used to combat eCommerce fraud. These advanced authorization systems use fingerprinting, vein recognition, facial scanning and other biological data to verify the identity of consumers.
Implementing these methods also provides customers with a smoother shopping experience that increases conversions and decreases cart abandonment. Shoppers will have less time to second-guess their purchases when biometric data provides an interrupted and secure checkout process.
A Look Into the Future of eCommerce Payments
From Apple Pay to cryptocurrency and beyond, 2022 eCommerce payment trends offer a promising look into the future of online shopping. New technology will benefit both consumers and eCommerce brands by providing payment options that are efficient, effortless and more secure.
As we look to see which trends enter the mainstream, one thing is certain — cash is no longer king. Continue reading to learn more about mobile payment providers and the rise of mobile payment today.
If you’re looking to take your brand international, it is essential that you understand preferred payment methods in your target market. Don’t go it alone. Talk to a Scalefast eCommerce expert and learn how the right partner can help you accept local payments.