A recent 2024 eCommerce Payment Trends report by Till, a Nuvei company, delves into the shifting landscape of payments in the eCommerce space, highlighting key trends businesses must navigate to stay competitive. It underscores the importance of offering seamless, localised payment options to meet the expectations of today’s global consumers.
Key Trend – Payment Optimisation
The report states, “declined payments, checkout complexity, security concerns, a lack of personalised and localised payment options are all common reasons for cart abandonment. Our research found that 70% of all drop-offs happen after the customer enters the checkout flow and $260 billion in annually lost sales are recoverable through payment optimisation”.
The strategies they suggest for improving payment optimisation are;
- Choose a payment partner who can pinpoint failed payments and provide real-time data to improve authorisation rates.
- Use technology that resubmits declined transactions based on custom rules, directing payments to the most cost-effective acquirers for optimal approval rates.
- Implement tokenisation solutions with both PSP and payment network tokenisation, plus vault integrations, to reduce downtime, enhance security, and prevent involuntary churn due to outdated payment details.
With mobile and digital wallets continuing to rise in popularity, merchants must ensure their checkout processes are optimised for these methods, alongside traditional credit card payments.
Key Trend – Social Commerce
The report states, “The social commerce market in APAC is expected to grow at a CAGR of 10.2% from 2024 to 2029, surpassing $879 million due to rapid digitalisation and eCommerce integration into social media. Over 70% of consumers in Asia Pacific prefer mobile shopping, and the region shows a strong preference for the convenience of shopping directly on social platforms, which calls for integrated and seamless mobile payment experiences.”
Suggested strategies include;
- Optimise your platform for mobile shopping with features like one-click checkout and digital wallet integration to reduce friction during payments.
- Add payment links to social media posts and ads to keep users on the same page, streamlining the transaction process without redirection.
- Partner with a provider offering end-to-end payment solutions, including frictionless processing, transaction data access, and optimisation tools to boost authorisation rates.
The report also discusses the increasing importance of subscription models and buy now, pay later (BNPL) options, reflecting consumer demand for flexible, convenient payment solutions.
Security remains a top priority, with a focus on adopting advanced fraud detection technologies, such as machine learning, to mitigate risks.
Additionally, the report highlights the growing role of AI and data analytics in personalising payment experiences and improving customer retention.
Companies that leverage these integrations are likely to build stronger relationships with their customers, enhancing trust and loyalty. Overall, adapting to these payment trends is essential for businesses aiming to thrive in an increasingly competitive and interconnected global market.
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