2020 was a transformative year for trade and payments, with 32.4% year over year growth in the usa. The development of the eCommerce payments ecosystem will be characterized by two major trends: a global shift towards cashless payments, as predicted by Gartner, and proliferation of”buy now, pay later” (BNPL).
Buy Now Pay Later
This idea allows customers to pay after the purchase is complete with one of the many choices:
- Full deferred payment after 30 days, or another set period.
- Payment in many installments, by means of example, in 4 installments over 4 months.
- Finance the purchase for a lengthy period: 12 months or more.
Brands benefit from this approach as it contributes to enhanced customer lifetime value and better conversion rates, as customers are likely to purchase more:
- 31 percent of the shoppers who used BNPL said they wouldn’t have bought at all if they didn’t have the option to pay in installments.
- 48 percent of clients said their purchasing decision was changed by BNPL access as a payment alternative.
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This ultimately contributes to an increase in total revenue during the electronic station. Today there are many vendors on the market which provide BNPL solutions for brands and commerce suppliers. Below are some of the examples:
Affirm is a payment gateway for businesses of any size. It offers payment plans for customers to divide their payments across 3, 6, or 12 months.
Afterpay gives shoppers the ability to divide their payments into four equal bi-weekly installments.
Klarna offers very flexible financing options, including allowing customers to cover after the delivery of their orders.
PayPal Credit: PayPal provides financing for customers who make purchases that total $99 or more, with no interest if paid in the first six months.
Bread: Bread is another flexible financing solution that allows you provide a number of payment plans to your customers.
The global pandemic has put regular cash payments under pressure, with an increasing number of consumers switching towards cashless payments. Gartner forecasts that by 2023, five countries will have established digitization initiatives to remove money from circulation. While money will not disappear overnight, cashless payment methods are on the upswing. This is especially true for the eCommerce space.
E-commerce payment methods in the U.S.
Cashless payment options also proliferate in retail sales, with the share of cash transactions forecasted to decrease from 30% to 19% and digital wallet share growing from 22% to 30% by the end of 2023. This trend is driven by the fact that by 2026 digital natives will be 59 percent of the clients from the U.S. market. Of that, 46% will be Millennials and Gen Z, representing the most critical purchasing power. According to eMarketer, it was estimated that in 2013, just 49.6percent of 12 to 17-year-olds had a smartphone. In 2020, that figure is expected to jump to 83.2%. The digital wallet market is dominated by major players: Apple Pay, Android Pay, and Paypal.
Impact on trade
With the discussion of cashless transactions growing across stations and the proliferation of BNPL, producers need to provide flexible payment methods to their customers. To accomplish this, they want a trade platform that meets the following requirements:
- Pre-integrated payment methods. The organization should have access to many payment processes, including credit card processing, digital wallets, etc.. However, it is not just about getting out-of-the-box integrations. It is all about providing companies with the capacity to alter these integrations with minimal exertion, ideally with a click of a button. This flexibility enables manufacturers to quickly adapt their payment approaches to target new customer segments or enter new markets.
- Comprehensive integration capacities. Using a constantly expanding payment ecosystem, there is a high probability that companies will need integrations that are not in the box, both now and in the long run. To manage this challenge, a trade platform must provide a flexible integration platform for the speedy onboarding of new payment methods. Furthermore, it should provide comprehensive documentation and best practices for developers to accelerate the integration process.
1 way for brands to take care of the requirements above is to study Composable Commerce. The idea relies on MACH architecture with applications broken down into well-defined packed business capacities that can be quickly composed to a best of breed solution. This enables manufacturers to significantly accelerate the onboarding of new payment methods with the minimum development effort.
Empowering Pharmacies to Create Differentiated Digital Experiences with Composable Commerce
The compounding effects of raising consumer expectations and the beginning of Covid-19 have increased the pressure on companies to weave digital throughout their business strategy. For pharmacies, now more than ever, patient-centric, digitally-enabled healthcare is critical to the ongoing improvement of lifestyles and results. In 2021, amidst the global outbreak, most doctors are attempting to increase the last mile of therapy and medication distribution through the use of digital technology. With many people locked in the house, this usage of digital technology to expand reach to serve patients in which they are is crucial.
Center to the digitization of medication and remedies distribution is an electronic commerce solution that can:
- Capitalize on the Current operational excellence of the pharmacy
- Liberate the pharmacy to create patient-centric experiences free from limitation
- Integrate perfectly with any existing front end experiences already created
- Integrate with existing backend systems of record
- Support a continuous end-user omnichannel experience through a bonded eHealth & eCommerce web platform & a dedicated Mobile App
These requirements of modern, digitally-driven pharmacies take a flexible approach to encouraging trade. Composable Commerce, a business-centric approach that leverages a modular construction and an open ecosystem to rapidly design and deploy commerce experiences provides the openness and simplicity to support the particular needs of pharmacies. Elastic Path partner, ELCA, one of the best independent Swiss IT services providers, leveraged our Composable Commerce-as-a-Service offering to build a solution that supported those special needs for a substantial Swiss Pharmacy Association.
ELCA worked with Elastic Path and the customer to create, Abilis, a secure digital health platform run by the Swiss Pharmacy Association that centralizes all of the data concerning the health of someone. Each pharmacy manages its inventory, promotions, orders and prices, together with a subset of the merchandise from a master catalog. Chantal Junod, Chief Information Officer in the Swiss Pharmacy Association shared,”We select Elastic Path because we will possibly have 900 Webshops for our Pharmacy and we were searching for an eCommerce solution that is flexible and can deal with a substantial number of webshops integrated within our E-health platform.”
This solution has generated the capacity for pharmacies to centralize the provision of access to healthcare products and drugs throughout Switzerland while maintaining local pharmacy level control of pricing, supplies and individual details. By working with a digital commerce platform that leverages a Composable Commerce approach, such as Elastic Path, ELCA freed front end experience designers, from the limitations of the vast majority of trade platforms, so that they may ensure the person is always at the center of the experience during the point of sale, internet portal, and mobile app stations. This flexibility is particularly important in the event the front end experience already exists, and you’ll have to have the ability to fortify the backend commerce capability through the current portal your clients feel comfortable with.
Together with consumer expertise, the sheer scale and complexity of product information, price variations, and pharmacy grade promotions supposed that Elastic Path was the only solution able to scale ensuring that the customer experience was best in class under a load of 100s of millions of price points. But, it wasn’t only the customer experience that has been prioritized in this project. The whole solution was implemented in order to facilitate and optimize the performance functioning of pharmacists. A key outcome was the positive influence on the daily life of the pharmacists with the addition of a completely new solution.