Are you an eCommerce merchant looking to increase sales while streamlining the checkout process? If yes, then you need to follow the current e-commerce payment trends.
We’ve seen a huge shift in how customers want to shop and pay for their purchases as the age of digital commerce has dawned, and the landscape is only changing every year. In the past, customers were limited to small payment options such as credit cards for all their e-commerce payments. However, these days shoppers expect flexibility in a million different ways when it comes to paying online.
In this blog, we’ll look at nine key eCommerce payment trends for 2023 and explore how merchants can adopt or adapt their payment solutions to meet customer expectations and stay ahead of the curve.
1. Electronic wallets
Digital wallets, i.e. e-wallets, have become a popular trend for both online and in-store payments and are becoming increasingly popular. By the end of 2023, more than 4 billion people are expected to use digital wallets for their purchases, with 30% of all POS payments being made via e-wallet.
Digital wallets like Apple Pay, Google Pay, and Shopify Pay make it easy to shop in-store and online. Many retailers are already getting on board with this trend, and it doesn’t look like it’s slowing down anytime soon. This makes e-wallets a critical part of any merchant’s portfolio of e-commerce payment options to stay ahead of the competition.
2. Loyalty programs
All major retailers recognize the importance of customer loyalty, and a great way to promote and build loyalty programs. A loyalty program often involves offering discounts, points, or rewards to customers who return to a business over and over again. This can range from offering a percentage discount on future purchases to exclusive access to certain products or services not available elsewhere.
Some businesses also offer a tiered system where bigger spenders get bigger discounts. This provides an additional incentive to return again, to build a relationship of trust between customers and companies, and to create a strong sales tradition from loyal returning customers.
3. QR codes
QR codes were very popular back in 2010, but since then their popularity has declined until the pandemic hit. Now they’re having a moment again. You see them everywhere these days, especially in the retail, events and hospitality industries.
For example, in restaurants, you can scan a QR to check the menu, order, and even pay for your meal; no need to wait for a server. For both online and brick-and-mortar retailers, QR codes appear in instances such as scanning a code to gain access to exclusive offers and other product lines, or to receive or give a referral discount.
These use cases and others make QR codes one of the important e-commerce payment trends to watch in 2023.
Cryptocurrency payments are changing how consumers shop online. Paying with Bitcoin, Ethereum or Litecoin is secure and fast, just a few clicks of the mouse and you’re done.
Customers love the feeling of being “in the know” by paying with their favorite cryptocurrency, and true privacy enthusiasts appreciate the (relative) anonymity of not having to give all of their personal information to merchants to make a purchase.
In light of this, more and more merchants are beginning to accept cryptocurrencies such as Bitcoin as legitimate forms of payment. This means that savvy retailers, both online and offline, would do well to do the same to keep up with the trend.
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5. Buy now, pay later
Buy now, pay later is fully embraced in e-commerce payment trends right now. BNPL payment options enable merchants to expand their customer base by attracting higher basket values for low-value products and increasing purchases of high-value products that customers might otherwise avoid. Overall, it’s a convenient way to keep sales steady, even in tough economic times, at a relatively low cost to merchants.
Merchants looking to take advantage of the Buy Now Pay Later feature have many options, including EP Payments, which offers best-in-class Buy Now Pay Later powered by Stripe. Retailers looking to keep up with consumer favorite trends in 2023 would definitely do well to make this payment option a priority.
6. Payment Requests
Payment apps are convenient options that more and more consumers are using. For merchants that offer these apps as a payment method, customers can enjoy a quick and simple payment process using NFC, QR codes or P2P networks.
Customers love the ease of use and contactless convenience of not having to remove the plastic for each payment, and merchants appreciate the speed of transactions.
Payment apps like Google Pay, Apple Pay, and Venmo are already staples in this corner of the e-commerce payments market, where new competitors are constantly popping up on the horizon with a new hot feature or service. Some payment apps even offer rewards for frequent users or bonus tracking tools that help turn this e-commerce payment method into a bona fide customer acquisition and retention tool.
Biometric payments are becoming increasingly popular among consumers due to their added security and convenience. Merchants that offer biometric options allow customers to use their fingerprint, facial recognition or iris scan to authorize payments instead of passwords or PINs. This makes fraud much more difficult because biometric data is unique to each person, making it virtually impossible for thieves to copy.
This type of verification can help make customers feel safer about giving out their personal information online and willing to part with their cash. This gives e-commerce merchants the leverage to attract more customers in less time by offering a uniquely secure payment experience.
8. Voice-enabled payments
Voice commerce, an area of commerce technology that includes voice payments, is becoming increasingly popular for its ease and simplicity. This technology is exactly what it sounds like. merchants that provide voice payments enable customers to enter and confirm their payment information using only their voice.
This technology could revolutionize how people make payments in the same way that voice technologies like Siri and Alexa revolutionized personal productivity.
In fact, merchants can use voice assistants like Alexa to enable customers to make purchases and payments with just a few words. Its modern comfort at its best. voice-activated payments save customers time and hassle, which creates a seamless checkout experience, leading to faster sales and higher average order values.
9. Near-field communication
Near Field Communication (NFC) is a short-range wireless technology that merchants can use to pair devices, exchange data, and make payments. The technology is similar to Bluetooth, but more secure and faster. It is currently being used by retailers for everything from fast contactless payments to easy device connection.
Not only is it great for quick payments, but merchants can use NFC to build customer loyalty and attract new customers. NFC can be used to award points to loyal customers, distribute coupons for future purchases, or reward winners in real-time for giveaways and drawings, adding an extra layer of gamified excitement to an e-commerce brand’s brick-and-mortar presence.
EP payments. an e-commerce payment solution from Elastic Road
Having advanced and on-demand eCommerce payment options for your customers is an important part of a smooth shopping experience. Enabling consumers to pay in their preferred way, both online and offline, separates good brands from great brands (and good revenue from great revenue), and the better your tools and technology, the easier it will be to achieve that “great brand.” status.
If you’re an eCommerce merchant looking to up your payments game, EP Payments from Elastic Path may be just the eCommerce payments solution you’ve been looking for. Contact us today to learn more about how EP Payments can help you streamline your payments process, increase customer satisfaction, and build brand value in the process.