Merchant services are transforming rapidly as tech gets better, customer needs change, and a pandemic pushes retailers and shoppers to adapt to new ways of business.
Below are some trends to keep an eye on according to Mercator Advisory Group:
- Buy Now Pay Later now has a foothold in the market and will grow exponentially as Coronavirus impacts online spending and shoppers turn to old-school credit lines.
- As more business comes online and CNP fraud increases, merchants now understand the importance of fraud protection services and secure trading.
- We will see more M & M&As and partnerships in merchant services, more so regarding fraud protection, ISVs, and gateway services.
- Online retail marketplaces will run the front of internet shopping. It’s no longer all about Amazon. Platforms like BigCommerce, Shopify, etc., will play a significant role.
- Mobile sports gambling and betting will increase as most sporting activity resumes and stadiums remain empty.
- The EMV fuel pump compliance date is soon to come, but COVID may cause a postponement.
Mercator Advisory Group’s Report
According to Mercator Advisory Group’s report, online shopping has seen colossal growth fueled by the 2020 pandemic.
The company estimates that the performance recorded within the year combines an effort that would take five years.
The stay-indoors way of life changed the front of Main Street markets and malls into empty shelves and lonely restaurants.
Though giant stores and retailers who trade in essentials have thrived, most owe the increased earnings to a well-thought-out strategy and their readiness to survive extreme economic situations.
Merchants of the post-corona era will digitize their product order, checkout, and fulfillment processes to engage their shoppers better.
As the world struggles to manage the pandemic five months into 2021, we expect to see the above trends dominate online e-commerce.
The bottom line
Though eCommerce is an ever-evolving industry, 2020 brought unprecedented transformations forcing retailers and customers to seek new ways of business. These challenges paired with groundbreaking technologies have paved the way for the above trends in merchant services.
Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of secure trading. He also writes non-fiction on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.