Understanding the development of online financing in eCommerce world

The online financing of our purchases, as well as the irruption of multiple payment methods have been two of the most established trends in ecommerce world. According to the study, and as a starting point, one in four consumers chooses the payment facilities as a fundamental reason to buy in an ecommerce. A relevant fact since distrust has always been one of the main obstacles that electronic commerce has had to deal with.

Thinking already in the online stores, PayPal is the payment method chosen by most of them: 83% of businesses have it as an essential payment method for their transactions. Here, ease of use, security and mass adoption by consumers have played a fundamental role.

The good data that reflects, year after year, the world’s ecommerce and the massive irruption of consumers in the digital channel (both web and app) have led to the emergence of new financing formulas adapted to each context, business and user. In this way, in recent years (or months) startups specialized in online financing of our purchases in ecommerce have appeared, using algorithms and machine learning that adjust each purchase to the specific needs of each user.

What will happen in the future?

Based on the experience described, and the latest movements in the market, these are some of the trends in both payment methods and online financing of purchases:

- PayPal remains the chosen firm in C2C and B2C businesses

- The payments segment is waiting for the movements of Apple Pay.

- Biometrics opens up multiple possibilities: payment for facial recognition, fingerprinting, etc.

- The banks begin to contribute for online financing, with the virtual POS as a tool for attracting ecommerce. Banks have no choice but to throw themselves into various forms of online payments.

- Security is the true challenge of payment methods and blockchain can be the expected technological solution. The meaning of the word Blockchain comes from Block and Chain which each has its own meaning. Chain is a unique chain record and is the flow of all consistent stages of an item / transaction. Block (special box) is a place / boundary / special area to accommodate all item / transaction changes that occur during chain process.

- Fintech startups begin to appear in this sector, supported by algorithm technology and BigData to provide specific and non-massive solutions in the management of the risk (cost of financing) of defaults.

- Fast online financing forms like payday loans uk direct lenders will poke onto the stage. Unsecured online financing will attract more customers than conventional financing is easy to acquire and does not care about the credit history of prospective borrowers. Online financing is the backbone of the ecommerce world now and in the future.

 The Internet has changed almost everything including our way of buying and selling. Of course security is one of the most important factor and online payments are things that we can’t ignore otherwise we will be eroded by the changing times that increasingly rapidly.

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