Interview

Payment habits and ecommerce obstacles retailers must keep an eye on 2023

Thursday 13 April 2023 14:24 CET | Editor: Irina Ionescu | Interview

Ahead of the Retail Technology Show, we interviewed Moshe Winegarten, CRO at Ecommpay, about the problems and opportunities for retailers in the ecommerce sector, and the trending payment habits retailers must be aware of.

 

What are the three main trends in ecommerce payments that you see gaining more ground in 2023?

The first and most important trend that comes to mind is the interchange and scheme fee changes. Merchants selling between the UK and Europe have been significantly affected due to Brexit, with payments once regarded as domestic or intra-transactions now treated as international cross-border transactions. In addition, many merchants must navigate red tape to acquire licences to sell into certain territories. 

Subsequently, businesses must decide whether to take on the additional cost themselves or pass that burden to the end-consumer — a choice made even trickier due to the global recession. With the extra costs incurred due to Brexit, there are certain ways that businesses can be set up to mitigate those cost increases. 

Another topic of interest is payment orchestration — connecting various payment service providers, acquirers, and banks on a single, unified software layer. Merchants are beginning to understand the benefits and flexibility payment orchestration can bring, and they're also interested in the resiliency it offers when entering new markets. 

As far as the providers are concerned, the situation is similar to when insurance comparison websites became popular around 15 years ago. Some insurers refused to join the platforms as it put them in direct competition with their rivals, but they eventually realised they had to follow the market trend and join the bandwagon.  

2023 has also seen significant activity in the Open Banking space, which has been a focus point for the UK, with the government committing to making use of its benefits. Moreover, current figures show that the number of consumers and SMEs actively using Open Banking-powered services in the UK has reached 7 million. 

Of course, the rising cases of payment fraud during a harsh economic climate may help push the need for Open Banking, driving further use of the technology within the UK. However, providers of Open Banking technology must ensure that they meet regulations and security standards. Most Open Banking payments are made via mobile devices, and features like FaceID and TouchID on smart devices not only comply with Strong Customer Authentication (SCA) but also provide an added layer of security.

As customer behaviours and expectations change and evolve, what are the major pain points merchants should address to create a frictionless checkout experience that will drive up conversion rates?

First, customers want to pay using the methods that make them feel the most comfortable, and the merchants that have been able to provide those options have thrived over the past couple of years. According to a recent survey conducted by Ecommpay, almost three-quarters of consumers (71%) would abandon a purchase if their preferred checkout method were unavailable. That means retailers must be quick to innovate, adapt, and employ the best payment methods for their e-commerce offerings.

Merchants should also incorporate local payment methods to target their chosen audience, as doing so can let the customer know that a website is tailored to them and their specific needs. It is important that businesses keep up with the pack in terms of incorporating new payment options. 

Another pain point that every retailer must deal with is chargeback management. We benefit from an in-house Disputes and Resolutions Team, which can ease the overall chargeback process, with minimum implication from the merchant. Our team can also mediate the conversation with card schemes, collating the information, and submitting proof that the chargeback was incorrect or shouldn't have been incurred.

As ecommerce continues to flourish globally, what is the future of BNPL, considering that the sector is expected to get more regulated? Will these regulatory updates force retailers to conduct extra steps to keep providing this payment option?

BNPL is an entirely new concept for many merchants and is growing in popularity. Our data shows that 33% of British consumers would remove items at checkout if BNPL isn't offered. More BNPL providers are appearing on the market, which complicates matters for merchants. Businesses must choose wisely when selecting a Buy Now, Pay Later solution, while remaining responsible to their consumers.

The BNPL market’s growth rate is not sustainable in the long term at is has been in the past five years. Demand will remain, but companies offering this payment method must keep tightening regulations. Many early entrants into the space took advantage of cheap funding, and some are now struggling with liability risks. The funding squeeze and incoming regulation might help avoid a bubble in the BNPL space, leading to a smaller industry which is more tightly controlled, but, ultimately, stronger and healthier.

How can Ecommpay's solutions help the ecommerce sector, and what is in store for the company in 2023?

Ecommpay is a fintech ecosystem allowing ecommerce businesses to make online payments and payouts globally. We offer a full-stack solution and an end-to-end payment provider, combined with on-point customer service and full technical support. Our payment infrastructure and products are built in-house, providing everything merchants need in one place with a single point of contact. Thus, businesses can minimise their costs, while maintenance or disruption almost completely. 

One of the opportunities to lower merchant costs and increase functionality is via payment orchestration — a multi-component product that manages all integrations, financial flows, technical, and legal capabilities into a single infrastructure. Merchants can keep track of payments, flexibly redistribute financial flows, and maintain their existing arrangements with current payment providers — all through a single interface.

Another advantage of working with us is that customers can connect to our platform using any form of integration: from API to SDK libraries or CMS plugins for Magento, OpenCart, osCommerce, PrestaShop, WordPress, and Bitrix.

Ecommpay aims to help merchants operate globally while being local, at the same time meeting their customers' high expectations. We’re a direct acquirer of both Mastercard and Visa, and benefit from great coverage in Europe and the UK. Overall, Ecommpay is ready to tackle the complex ecommerce landscape of 2023 and beyond. 

 

 

About Moshe Winegarten

With over 16 years of experience in the fintech space, Moshe has held significant positions throughout his career. He played an instrumental role in developing the UK’s first instant-issue prepaid MasterCard and, more recently, as Senior Vice President of Sales at Checkout.com, he scaled their sales team, helping them become one of the largest European unicorns. At Ecommpay, Moshe is responsible for developing expert go-to-market sales, revenue, partnerships, and marketing teams, and optimising the account management function. 

 

About Ecommpay

Ecommpay is a payment service provider with an entire fintech ecosystem for making online payments and payouts globally. Using data-driven analysis and tailored payment technologies, Ecommpay guides businesses through the fast-changing environment of ecommerce, providing solutions that achieve the perfect synergy between conversion and security.




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Keywords: payments orchestration, ecommerce, ecommerce platform, merchant, online payments, BNPL, API, checkout optimisation , Open Banking, Open Banking payments, local payment method, SMEs, interchange fee, Interchange Fee Regulation, acquisition, banking license, MPI licence, EMI licence, Brexit
Categories: Payments & Commerce
Companies: ECOMMPAY
Countries: United Kingdom
This article is part of category

Payments & Commerce

ECOMMPAY

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