A complete guide to online payments for new eCommerce businesses

Earlier, there was a time when our parents or grandparents took us to stores to buy clothes, groceries, confectionaries, etc. And, now it’s the time where we prefer ordering online over offline store visits. Yes, e-commerce is the new normal in our lives.

As technology groomed itself to touch greater heights, it enlightened every possible tangent on this earth. From technology entering our pockets creating a global village to regulating our finances, the amalgamation of technology and globalization has created an impromptu shift from mundane to unexpected innovations in various fields. 

And today the payment solution for e-commerce business has spread its wings from traditional to unexpected means of payment. 

Introduction

If we compare the emotions of our parents or ancestors of going to shops compared to us, the result would have an impactful gap because Gen Z hasn’t experienced the joy of shopping with their parents much. 

Though Gen X is somewhat into e-commerce, the Gen Z section is born and brought up in the digital world. 

With technological advancements today, we can book doctor’s appointments, learn and earn from any corner of the world, operate home appliances with voices, pay via gestures and smart devices, etc. 

Similarly, the introduction of e-commerce was once such meaningful innovation as it created a massive impact on the lives of both merchants and target audiences. It made a feasible bridge between the consumers and merchants by cutting down the necessity of nearness. 

Along with enabling digital shopping, fintech also evolved and gifted us with the opportunity to pay and receive online payments in multiple currencies in an instant, secure, and transparent manner.

We know about e-commerce as we are regular customers. But, let us take a deeper dip into the e-commerce bubble to understand the complexities.

Whereabouts of the e-commerce world

If someone asks what you know about e-commerce, most of us could manage the situation by explaining the basic definition of e-commerce, but how many of you are aware of the inception of e-commerce? 

When the dot-com boom happened, little did people expect the following innovations in terms of the internet and technology. 

The history of e-commerce dates back to 1979. It was started by Michael Aldrich, an entrepreneur from the United Kingdom. He was the one who tried teleshopping and created a mechanism that enabled a multi-user transaction processing computer via a telephone line. 

Later, this innovation was marketed in 1980 and offered as business-to-business systems. That were then sold in the UK, Ireland, and Spain. 

Later in 1992, the e-commerce trail was followed by Charles M Stack’s Book Stacks Unlimited. Here, Mr. Stack created a dedicated online bookstore. After a couple of years, the name was changed to books.com and eventually acquired by Barnes & Noble. 

Then in 1995 came Jeff Bezos, who shook the e-commerce world by starting the largest online bookstore, which eventually transformed into an inclusive hub for millions across the globe. Since then, there was no turning back for e-commerce. 

People gradually adapted to the latest changes in the e-commerce and fintech world, as both were intertwined. 

Before 2020, e-commerce and online payments were having a decent run. However, when the pandemic hit the globe, online marketplaces and digital payments saw a massive shift, where they experienced more traffic. 

People who preferred going to shops to purchase groceries and other materials had to opt for e-commerce sites to make the purchase. Moreover, from paper dollars and cents, many shifted to a cashless economy.

Knowledge Bank

1. According to Statista, there will be 2.14 billion online buyers by the end of 2021.
2. The global e-commerce sales that valued over $4.28 trillion in 2017 are all set to grow and attain a startling worth of a whopping $5.4 Trillion in 2022.
3. A recent study concluded that online and e-wallet payments via PayPal, Apple Pay, and Google Pay accounted for over 45% of global e-commerce transactions in 2020.
4. Moreover, e-wallets are expected to witness an increase in 2024 and reach up to 51.7% by taking a dig at the traditional means of payments such as – card payments, net banking, and cash on delivery (COD).
5. According to an analysis conducted by the Internet Retailer, consumers spent $517.36 billion online with U.S. merchants in 2018. It is a spiking increase of 15% from consumer spending in 2017.

With the dire need for social distancing and contactless payments, both e-commerce and digital payments are thriving.

What are the trending e-commerce businesses?

If you are someone who wants to have their debut then, this section might be a boon for you as we have brought you the trending e-commerce businesses in 2021, and they are as follows:

An ideal store for groceries

Every household needs groceries. People have junk food, but post-pandemic, many have turned themselves into cooks. Therefore taking up groceries or other food materials as an e-commerce option can be a profitable option. 

Organic fruits and vegetables are also on a rage. To begin with, conduct insightful research, know the numbers, and ideate on how and what will you provide the customers. 

Babycare, healthcare, and sanitary products

One thing that will never stop is birth. Therefore, opening up an exclusive place for babycare and other peripherals products could also make way for a good option. 

Healthcare products and sanitary products are also a good option as the need for them would never fade. 

Fitness Equipment

Due to the shutting down of gyms, many people have converted their homes to the mini-gym with required gym equipment and supplements.

Also, social media has started affecting the minds of people, which is creating an urge in the minds of people to adopt a healthy lifestyle by changing their diet and exercise routine.

Customized gifting

It is another trending tangent in the e-commerce world because now, the world is all about customization and personalized products. 

Be it ordering cakes or gifting something for our loved ones, or owning exquisite products. We all prefer customized products because it gives a special and unique feel.

What are the payment methods used in the e-commerce spectrum?

The most common types of e-commerce payment solutions are as follows:

Credit/Debit card payments

It is one of the most used payment methods as it is easy to use, requires minimal information, quick process, and easy transaction.

In this payment method, one required name, card number, expiration date, and CVV number. It is one of the best and commonly used payment methods because it is considered a secure and easy-to-access payment solution. 

Smart Card payment

Like debit card payment, smart card payment is also a digital monetary card where money gets deducted after every transaction.

To access smart cards every user is assigned a unique PIN. It is also a secure payment method as it operates in an encrypted manner and processes payments at a faster pace.

Digital Wallet

Just like contactless payments, e-wallets are also on the rise as they are available on mobile, easy to access, secure, and transparent. All you need is to link your e-wallet payment solution with your regulatory bank and have a decent internet connection. 

Facts

Even though card payments are the most common mode of payment in the e-commerce turf, e-wallet payments are expected to overshadow card payments by 2021 

Cash

Even though it is one of the traditional payment methods, it still has a fragile hold in society. But, as the world is shifting from offline to digital pace, a cashless economy has been thriving. 

Cash may soon become a foreign object in many nations. But digital is the future, and it shall continue to grow in various means. 

Cryptocurrency

Even though the crypto world has boomed and many are investing. E-commerce has not entirely welcomed cryptocurrency as a reliable payment option.  

Paypal, one of the renowned payment solutions, has launched checkout with the crypto option. That has enabled millions across the globe to fulfill the payment requirements with retailers worldwide. 

Now, these were a few of the e-commerce payment solutions, but it isn’t necessary. That it would remain the same after a few years because the cashless economy is in vogue. And shall continue to modify with arriving technology.

Top e-commerce payment solutions

As technology is upscaling its standards, fintech is also introducing multiple payment solutions. That will cater to the needs of many in the e-commerce world. The top cross border payment solutions are as follows:

PingPong

It is a cost-effective, safe, and reliable cross-border payment solution that has saved the lives of millions of Amazon sellers, freelancers, service providers, commoners, and e-commerce enterprises. PingPong might not be a much-heard name, but it is a genie in the bottle. 

If the right one finds it and uses it to the fullest, it would open the door of savings and growth. 

Well, the words are not bluff because PingPong offers:

1. Zero sign-up and monthly/yearly maintenance costs.
2. It is regulated and licensed by the Reserve Bank of India (RBI).
3. Allow you to pay your VAT and GST without worrying about currency changes.
4. Since the inception of PingPong, it has had a particular place in the hearts of e-commerce entrepreneurs.
5. PingPong provides a conversion calculator that will guide you in calculating the amount you shall receive post forex deduction. 
6. Accept payments in the following currencies: INR, USD, GBP, EUR, JPY, AUD, MXN, AED, CAD, and SGD.
7. Receive a free digital Foreign Inward Remittance Certificate (FIRC) on your PingPong dashboard after every cross-border transaction. No more standing in tiring bank queues.
8. You can handle multiple currency tradings under one umbrella without confusion.
9. Pay your vendor and supplier without any confusion.
10. All these amenities are available on PingPong at a highly competitive foreign exchange rate. 

E-commerce is booming, and PingPong has helped millions to facilitate a smooth, secure, instant, and transparent payment across the globe. If you are starting your business web on the online marketplace, don’t forget to consider PingPong as a payment option amongst your potential payment solutions.

Payoneer

After PingPong, Payoneer is the next best option available in the fintech market. This cross-border payment solution is a haven for freelancers, service providers, e-commerce merchants, and others.

Payoneer accepts payments in the following currencies: USD, EUR, GBP, JPY, AUD, CAD, and MXN.

Payoneer also assists you in paying your VAT and obtaining a free digital Foreign Inward Remittance Certificate (FIRC) following each overseas transaction, which means no more waiting in long bank lines.

Wise

It, formerly known as TransferWise, is a competitive contender in the fintech market. That is a haven for customers who use it for both personal and business use. Wise helps in facilitating a smooth transfer and acceptance in over 50 currencies.

This international payment solution guarantees real-time exchange rates in over 80 countries which is six times cheaper than banks and 19 times cheaper than Paypal.

1. It is secure and regulated across the globe (wherever they operate). Wise API aids the payment automation. 
2. It creates a feasible monetary bridge that would build an easy path to pay your contractors in other countries.
3. They offer you a monthly statement system that helps you in tracking the monthly expenses for tax purposes.
4. They also help pay your vendors irrespective of the currency and border differences and accept Amazon and Stripe payments for free.

Stripe

This cross-border payment system founded in the United States. This multifaceted payment solution accepts payments in over 135 currencies worldwide, and also offers extensive support for local payments.

You can consider this feasible payment solution as it’s a helpful tool for recurring payments apart from delivering other established fintech solutions. It also helps with invoicing, making it easier for the recipient to approach the customer.

This US-based payment solution allows e-commerce merchants to create a payment page with all the required elements they want on their landing page. 

Then, merchants can generate and share the link of the page to start receiving payments from customers immediately. It also helps the merchants to curate customized quotes and invoices to send to specific customers.

Conclusion

The E-commerce world is dynamic and keeps changing. But, one thing is for sure that it won’t dip because digital is the future, and offline stores are off the radar of ‘in vogue’. 

Along with e-commerce, digital payments have also experienced a boost and shall continue to face the skyrocketing rhythm as digital is the future and the e-world has no turning back. 

Payment solutions of e-commerce businesses would continue to change. As we have stepped into the ‘e-world’, it’s all about setting trends and breaking the monotony.