Benoit Boudier, Head of Business Development for Regional Businesses at Worldline, highlights the opportunities for companies who optimise their payment strategy in the second quarter of 2022 as the global eCommerce continues its path to breaking new boundaries.
With Europe seeing a rise of 30% in digital and mobile payment transaction values over the past three years and online retail sales set to reach €854 billion in 2021, the emerging dominance of eCommerce as the shopping channel of choice continues unabated. This upward trend also shows little sign of faltering this year, even with something of a resurgence in physical shopping as restrictions are being lifted, is likely to bring another record-breaking year.
While the pandemic can claim a lot of credit for the surge in eCommerce, it is clear that it was already growing rapidly, and it looks like it’s on track to become the predominant form of shopping within the next decade. It is therefore undeniable that online merchants should gear up and make the most of this opportunity.
So how can merchants capitalise on this paradigm shift in shopping patterns?
Consumers will always want to buy the best goods at the best price and they can do so from the comfort of their home or while on the go. Online merchants are highly focused on trying to convert every shopper into a returning customer and they do this through developing a number of touchpoints which seek to catch and retain shoppers' attention.
Mobile shopping accounts for half of Europe’s online sales, and it clearly lies at the heart of any successful eCommerce strategy. If we look at the payment stage in particular, where customers input their card details, the use of eWallets reduces friction and allows the customer to complete a transaction swiftly in just a few taps.
The ‘Buy Now, Pay Later’ (BNPL) market has grown exponentially and represents one of the most important developments in eCommerce in recent years. While still relatively niche, accounting for only 2.5% of transactions in 2020, its popularity is rising rapidly and has significant growth opportunities. Many major eCommerce players are now offering BNPL options to provide their customers with even greater payment flexibility.
Likewise, subscription-based payments are also gaining traction, seeing more than a 400% increase in revenue growth. With these payments taking place automatically rather than via manual input, merchants have another opportunity to develop and secure further revenue streams.
How merchants can consolidate success
The pandemic and its many constraints both physical and psychological made life extremely challenging for retailers and consumers alike. However, eCommerce has not stood still, rather it’s been in perpetual evolution. Merchants indeed had to rapidly adapt to meet customer demand amid constraints and limitations on multiple fronts, caused by the pandemic as well as other issues, such as supply chain issues.
Simple but effective solutions such as pay by link or click & collect were rolled-out swiftly to resolve immediate challenges. However, there is now an opportunity for the forward-thinking merchant to focus on long-term solutions that will take them ahead of their competition.
These could include consolidating their acquirers and gateways to lower costs and undertaking strategic developments to expand their market footprint. With digital commerce predicted to rise by 12.7% in 2022, it is very clear that competition will become even fiercer.
Understanding and adopting emerging trends in consumer shopping behaviour will set the successful retailer apart from their competition. Investing in innovative technology such as Live Shopping will allow merchants to offer immersive online shopping experiences to their customers. And finally, choosing the right eCommerce platform and partnering up with a payment provider that has global capabilities and local market knowledge will go a long way in ensuring the way ahead is both seamless and profitable.
About Benoît Boudier
With almost 20 years of experience in the electronic payments, eCommerce and mobile marketing sectors, Benoît Boudier - Head of Business Development for Regional Businesses at Worldline - focuses on providing innovative payment solutions to businesses of all sizes across 31 geographies. Prior to Worldline, he held executive positions at Ingenico helping merchants grow their online businesses across key markets in Europe.
He graduated from the Ecole Centrale Paris in 1992 and since then, he has spent all his career in business development and innovation in areas as diverse as biotech and information technology.
Although French by birth, Benoit lives in Amsterdam where as a passionate sailor he enjoys the maritime history and the proximity to the sea.
