It’s 2019 and e-commerce has never been as voraciously active as it is now. As more businesses take the online route and more people switch to being digitally conversant, the online scape morphs into a highly intuitive yet aggressive platform. In all the goodness around ease of use and convenience of transactions, an existing problem takes an enormous proportion: that of hacks and security threats. According to a Thales Data Security report published in 2018, 75% of all US retailers have experienced at least one cybersecurity theft during their time of operations.
To put it more simply, the current e-commerce scene is rife with both the good and the potential bad. And like never before, customer experience is being regarded highly while integrating data and other information has become more a necessity, less a luxury. Fintech has entered the scenario heavily, and the marriage of finance and technology is continuing to lay trends that will further impact the future of online businesses.
Payment gateways are now not just part of this ever-expanding world of fintech but also an undeniable presence in e-commerce. An e-commerce payment gateway is essentially a service that verifies the bank credentials of a user and then accepts or declines the payment. There are several reasons why any e-commerce business needs to consider a payment gateway service seriously now.
Security against fraud
While an Emailage report has stated that 48% of small business owners in the US and Canada don’t believe they are too small to be affected by online fraud, facts say something else. Statista reports have a completely different story to tell: overall US businesses lost around $6.4 billion dollars in 2018, while small businesses have actually been taking a hit of $155, 000 yearly.
It’s not surprising that this is the case, because when businesses first start operating, they conduct only a limited number of transactions every day. This does not expose them to random hacks and threats. However, when the scale changes and transactions happen in the hundreds, exposure becomes manifold. This is where an e-commerce payment gateways with an in-built fraud detection mechanism can be counted on as a reinforcement of security. It checks on IP addresses, ensures no sensitive data is left on the merchant database as well as the address provided to identify the veracity of the cardholder, among other filters. This brings down the extent to which then the business is exposed to such threats. Even when it comes to “high-risk” countries, a payment gateway that has all the essential security checks in place can counter the associated threat of fraud.
Ease of use
According to the Payments Method Report 2019, 41.8 billion were estimated to make purchases through e-wallets. The Paypers Payments Method Report also suggests that by the end of 2019, almost 2.1 billion people around the world will have moved to use e-wallets. These numbers are a clear reflecting of the trend global business is moving towards: both the banked and unbanked population will prefer doing their purchases online. This of course also relates to how far fintech has come in creating experiences users find easy and convenient at the same time.
One way of looking at a payment gateway is as a bridge between merchant and customer. And where ease of use comes in, is across geographies, across payment methods and across specific business requirements, the last of which can be served by customizations built into an intuitive payment gateway service. When a customer faces the least trouble or resistance in making an online transaction, then you can say the payment gateway in question has really worked.
Expanded customer base
The Global Payment Report 2018 by Worldpay revealed that by 2022, 28% of people around the world will be using mobile payments. In fact, by 2022 it is anticipated, that mobile payments will in fact become the second most common method of payment following debit cards. These forecasts are a clear indication that online businesses will continue to lead the way over the next five years.
So, in e-commerce payment gateways offering both security and ease of use, more people will be willing to transact with your business if you establish a gateway service that’s reliable and offers fast checkouts.