eCommerce is a sphere that never stops evolving. That’s why, if you are aiming for your business to stay on the crest of a wave, it is essential to continuously follow the payment trends that arise. This guide will take you through the top eCommerce payment tendencies to look out for in 2022.
What trends does your company need to follow?
In the variety of news and updates being released, it may be difficult to realize which tendencies are worth keeping an eye on. Worry not – we have made a compilation of the three major payment trends you are guaranteed to benefit from:
1. BNPL transactions
While the pandemic situation is now more manageable than it was in 2020, some trends are here to stay. One of such tendencies is Buy Now, Pay Later. This payment option enables consumers to receive an item or service and break its cost down into smaller installments, making the purchase more affordable. Other pros of BNPL transactions for merchants are:
- Easy website integration
- Higher consumer retention rate
- Larger sales volumes
- Decreased cart abandonment
- Increased customer lifetime value (CLV)
Besides, nowadays, BNPL transactions are becoming even more seamless and take only a couple of clicks to complete. Thus, it is no wonder that global BNPL sales volumes are expected to reach $181 billion by 2022, in contrast to $93 billion in 2020.
2. Real-time payments
Real-time payments (RTPs) are transactions that are initiated and settled nearly instantly. It is a global trend that will only keep evolving. According to forecasts, in the five-year timeline before 2025, a compound annual growth rate for electronic payments will reach 43.4%, with the share of RTP transactions rising from 0.6% to 3%.
Some of the advantages RTPs offer are:
- Unbeatable transactions speed
- Minimal chance of errors
- Improved cash flow management for businesses
- Modern consumers are expecting faster and more convenient payment methods, which is why RTPs are not to be ignored.
3. Smart payments routing
False declines have a negative effect on all parties involved in the payment process. According to statistics, an average online store declines 2.6% of all purchases due to suspected fraud. This highly affects sales, as in the US alone, 33% of users drop retailers after false decline incidents. Luckily, smart payments routing is a trending solution that can effectively tackle this issue.
Smart routing is a technology that conducts transactions via the channel where they are most likely to be approved. This solution has the following benefits:
- Reduced number of false declines
- Automatic payments flow management
- Optimized conversion rates
- Increased revenue
- Higher customer satisfaction
Smart routing systems are best adopted as part of a payment solution package delivered by a reliable company. Payneteasy is a leading payment platform provider successfully operating since 2006. It has happy clients among PSPs, large merchants, banks, PSPs, financial institutions, and nonprofits worldwide and offers all-in-one solutions.
Payneteasy’s smart routing solution will direct a transaction to the merchant account, payment gateway, or acquirer that works best for any given purchase. Click here for more effective payment tools, such as a white-label payment gateway, mPOS & POS SDK, and other solutions tailored to your projects.
Bottom line: how to keep your business competitive?
Now that you are aware of the hottest eCommerce payment trends of 2022 that are guaranteed to be beneficial for your business, all you have to do is to start implementing them. Use our advice and adapt to these changes wisely, and your business is sure to have a competitive edge. Also, remember to stay alert for upcoming shifts in the payment industry and keep your business processes up-to-date.