An industry that is always developing and aids in streamlining companies’ finances is fintech or
financial technology. How FinTech Companies Have Revolutionized.
FinTech products have been increasingly prevalent over the last ten years,
helping eCommerce companies invest in new sales strategies, company expansion, financial
services management, and many other things .
So, say you want to sell custom merch or custom slides on Etsy; in addition to learning how to
sell on Etsy, you also need to learn how financial services are changing marketplaces to benefit
from it.
Fintech growth has allowed eCommerce businesses to scale quickly and attain peak success,
making it obvious that the two industries’ growth goes hand in hand. Let’s look at how FinTech
companies and their products have revolutionized the eCommerce Business.
What Is FinTech?
FinTech is short for Financial Technology, which is financial services offered through
technology. It covers new technology that aims to enhance and automate the financial service
delivery process.
FinTech products cover innovations such as payments with mobile, trading stocks,
cryptocurrencies, blockchain technology, and much more. Fintech serves all the other sectors to
make payments and transactions easier for businesses and their clients.
At its foundation, fintech uses sophisticated algorithms and software on computers and,
progressively, smartphones to assist businesses, company owners, and individuals in better
managing their financial activities, procedures, and other transactional affairs.
Fintech contributes to eCommerce’s convenience, effectiveness, and reliability in various ways.
Since its inception, fintech has begun to revamp the payment service sector. It has made it
incredibly simple for eCommerce companies to accept and process customer payments.
How Has FinTech Revolutionized eCommerce?
It is undeniable that Fintech has an influence on the eCommerce industry as well as its
profitability. Fintech technology may be used in various ways by companies and conventional
financial institutions, especially in the eCommerce industry. Let’s examine some of the greatest
developments in fintech shaping eCommerce payment processing.
1. Improved eCommerce Payment Processing
Fintech companies are enabling and enhancing eCommerce payment processing, thus
streamlining and eliminating any impediments from the checkout process.
ECommerce payment processing innovation is typical of digital enterprises. Business
operations are changing as a result of ongoing innovation. Payment methods have a
measurable effect on merchant sales, especially in the case of eCommerce businesses.
One of the biggest reasons people prefer to shop online is the quick checkout process.
Nowadays, consumers have the option of making purchases either from their houses or on the
road. The popularity of mobile devices and applications makes this convenience feasible.
ECommerce payment processing innovation has evolved from a crucial profit center to a
centralized function now recognized as a source of income and profitability. Merchants must
adapt to these innovative services to guarantee that their customer experience remains the
finest in its class.
2. Buy Now Pay Later (BNPL)
“Buy now pay later” or BNPL is among the latest trends of fintech that have impacted the
eCommerce industry greatly in recent years. This entails a business giving a consumer credit,
who then is given a predetermined period to pay back the loan in installments. When compared
to receiving credit card approval, it is simpler and faster.
Several businesses offer 0% interest on the BNPL loans right at the checkout to allow
customers to buy big things in one go. The stats of closing these purchases would drop
significantly if customers were required to spend time planning and funding the purchase cost.
BNPL is a great option for:
● People who don’t have access to conventional credit products.
● Those who need the flexibility to spend within a definite budget.
3. Multiple Different Payment Options
Everyone benefits more when an eCommerce store provides extra payment alternatives for
their customers. Some of the most popular ways of making payments available widely over
eCommerce platforms are:
Customers are changing their methods of payment to follow the latest new trends provided, so
giving them additional choices helps the company with an additional appeal. So vendors can
choose from the various eCommerce payment methods based on the popularity and
preferability of their clients.
4. QR Codes
It’s a smart idea for any company owner looking to enhance the consumer experience to include
a QR code for transactions in their website or app. When choosing a payment option, customers
often consider three things: safety, ease, and convenience of use. Using a QR code for
payment may satisfy all three requirements. Here’s how the development of QR codes
benefitted the eCommerce industry:
● Better and more quickly processed payments
● Integrity checks and payment approval system embedded within the security and
dependability system
● Aids quicker services and payments
● Greater efficiency and convenience for remote payments for companies without
requiring them to exchange bank information
● Convenience and effectiveness improvements for commercial enterprises
● Easy availability while maintaining a reasonable price.
5. One-Click Checkout
According to stats, 80% of the time, people fill their carts with products leaving them
abandoned. A multi-page checkout procedure often discourages customers from making
purchases because they’re under time constraints. Fintech offers one-click checkouts to the
eCommerce industry as a solution.
Customers that use one-click checkout make purchases by pressing a single button rather than
entering information into several forms. Single-click checkout could speed up and simplify the
purchasing process while assisting companies in increasing conversion rates. Consequently,
shoppers are less likely to walk away from the checkout process without finishing their
purchases.
6. Democratized Sales Access
By democratizing access to sales, fintech helps smaller companies and independent
businesses sell their goods and solutions online. Despite the rapid growth of e-commerce, there
still needs to be more financing options available to small and medium international retailers.
Fintech and marketplaces like Shopify and Amazon are working together to enable small
companies to sell their goods and services on a massive scale without crossing physical
boundaries.
7. Cryptocurrency and Blockchain Technology
Cryptocurrency and Blockchain are trending FinTech topics. Due to cryptocurrencies, customers
may use blockchain-based digital currencies to pay for products and services. Significant
eCommerce establishments have implemented these digital currencies as a payment
mechanism.
Implementing crypto payments and blockchain technology can encourage more sales for the
following reasons:
Conclusions
FinTech contributes several intriguing payment trends that enhance eCommerce Payment
Processing and support the sector’s expansion. Fintech has made it easier for consumers to
complete their transactions and has helped businesses sell their goods more effectively and
reach a wider audience. After reading this blog, it can be assumed that the two sectors co-
evolve and show signs of introducing more cutting-edge products and services in the next years
to offer clients accessibility and convenience.
References:
https://scoopnew.co.uk/2023/08/07/bathroom-remodel-ideas-to-inspire-your-next-renovation/https://scoopnew.co.uk/2023/08/05/how-stats-can-improve-your-betting-usa/https://scoopnew.co.uk/2023/08/04/what-strategies-are-available-to-promote-your-mobile-gaming-business/https://scoopnew.co.uk/2023/08/03/hoodies-bring-comfort-and-style-together/https://scoopnew.co.uk/2023/08/02/5-ways-to-retake-your-health-back-this-year/https://scoopnew.co.uk/2023/08/02/5-ways-to-retake-your-health-back-this-year/https://scoopnew.co.uk/2023/07/08/predicting-va-loan-approvals-with-ai/https://scoopnew.co.uk/2023/05/31/the-future-of-web-development-and-technologies-to-watch/
