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Common Payment Challenges Facing E-Retailers

Banking CIO Outlook | Wednesday, April 20, 2022

Payment used to be nothing more than a necessary transactional point; now, it represents an opportunity to engage with customers and improve the overall shopping experience.

Fremont, CA: Payment collection plays an important role in growth and profitability in e-retail. Payment is a crucial component of the shopping experience and for ambitious e-retailers.

Digital payment tools have opened up the window to new opportunities for retailers, which have provided customers with more convenience. But they have also posed some new challenges that merchants should address in order to be successful.

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In this article, we are pointing out some challenges faced by e-retailers:

User Experience

When a shopper arrives at the payment page, the customer journey does not end. Payment used to be nothing more than a necessary transactional point; now, it represents an opportunity to engage with customers and improve the overall shopping experience.

Customer convenience, on the other hand, is a moving target. Consumer expectations are constantly changing as a result of technological advancements. Simultaneously, you must strike a balance between your customers' desire for a frictionless experience and your own need for payment security and fraud protection.

The solution: Ensure that your payment service provider can provide the necessary tools and technologies to support the rapid and cost-effective implementation of new payment technologies that improve the customer experience while avoiding unnecessary risks and costs. New technologies should be simple to incorporate into your current infrastructure.

Globalization

The internet has successfully enabled a global networked economy. Modern retailers are now able to generate revenue at a regional level, and leading players generate the major part of their revenue outside their home country.

Even though globalization and technology innovations are creating extraordinary opportunities for growth, taking your business outside your borders can also be a resource-intensive undertaking.

Adapting to local payment infrastructures and customer payment preferences in the markets they are entering is becoming challenging for many expanding e-retailers. Offering local payment methods allows you to reach geographical markets and customer segments that would otherwise be inaccessible. However, it adds significant complexity.

The solution: Find a globally networked payments partner who provides easy access to all the local payment methods you require, preferably with a single integration for all geographical markets.

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