It’s still early days when it comes to the ‘digital economy’ and yet I’m sure you agree that the rate of change is daunting.
I must admit it’s exciting to be an innovator in e-commerce, an area that will continue to have transformative impacts on the way we live and work.
From my comfy leather seat in Auckland, it’s easy to forget that from a global perspective e-commerce has a huge influence on how future economies develop, such as those in the third world. Online payment trends in various countries are so different, and it’s really intriguing to me to see how developing countries are early adopters in some of the most innovative emerging technologies.
In India or many African
United Nations report on ‘The Information Economy’
The United Nations recently released the ‘Information Economy Report 2017: Digitalization,
A lot of it was fairly dry, I must admit, but it also made for essential reading from where I sit. Not just as a payments solution provider, but as a business professional.
António Guterres (UN Secretary-General) says the report’s purpose is to provide insights and resources, ‘so the international community can reduce inequality, enable the benefits of digitalization to reach all people and ensure that no one is left behind by the evolving digital economy’.
And most pertinent to me in my line of work - the report says that online, mobile and digital currency payment systems are set to overtake credit and debit cards as the most popular ways to pay in e-commerce worldwide by 2019. Compelling food for thought for the global finance industry as well as
Of course, these figures are heavily skewed by developing nations, which are not anywhere near as reliant on credit and
What does this mean for your business?
It’s a no-brainer that it's still essential to provide credit card payment options on your website, and it will be for some time to come (check out our blog on the ‘Top 8 Methods for Accepting Online Payments in New Zealand’).
But as the need for credit/debit alternatives grow, and trust and awareness
Growth of the ‘Digital Wallet’
This is a term we throw about in the payments industry quite a bit, but it covers a lot of bases. It may be worth offering some clarity.
The term ‘Digital Wallet’ is essentially just a device that allows you to make electronic transactions. It’s more commonly referring to the use of a smartphone to purchase something via an app, whilst you’re on the go. Also termed a “mobile wallet”.
With a mobile wallet
So at the petrol
It’s pretty compelling technology for consumers because
According to ANZ – merchant benefits of this technology are that your customers spend less time in queues; less chance of customers going elsewhere, and there’s reduced cash handling and reconciling. ‘The device remains in your customer's hands and the card number is not stored on the device or your systems – improving security and giving your customers reassurance’. I’m thinking of small businesses too, who will have a cost-effective and
So why is it taking so long for Digital Wallets to take off in NZ? It seems to be taking a while for the banks and tech companies to work out what’s best for the future. One of the big questions has been whether banks partner with external providers (Samsung, Apple etc) or whether they build their own apps.
Over the ditch, Commonwealth Bank, Westpac, and National Australia Bank have got together and recently announced they are launching their own payments app. ‘Beem’ enables users to make instant payments using their smartphone, and request payment from someone who owes them money and split bills. More features will be added soon.
Yet ANZ Australia has chosen to partner with Apple Pay – and recently launched it at ANZ here as well. And Westpac NZ
It will be interesting to see how this all unfolds!
What does this mean for your business?The growth of mobile wallet use shouldn’t keep you up at night – but do keep an eye out, especially if you offer in-store payment solutions.
Things will certainly change in the next few years if not sooner, thanks to the banks finally making some decisions.
Right now in NZ, you have
Oh – and just keep an eye on those Millennials - the largest customer base when it comes to online shopping. They are hyper-connected, well educated on e-commerce trends, arguably more trusting and savvy about online payment mechanisms, and they don’t own credit cards. And of course, they all have mobile phones.
Change is inevitable.