The Evolution of E-commerce

Untitled1The first E-commerce transaction was made in 1994 and ever since it has grown very quickly. It has impacted the way people shop today and now leading to the formation of a whole new industry of E-commerce businesses and support services. The advances in technology have led to the propagation of alternative payment methods that makes financial transactions easier, quicker and more secure. Examples include Ideal, Sofort, PayPal, and Klarna.

Across the E-commerce value chain organizations include payment gateways, merchants, merchant acquirers, processors and issuers of payment instruments. Each of them faces challenges in creating a global payment strategy due to the variety of requirements on the demand side and fragmentation of competence on the supply side.

For payment gateways, defining their target markets is very crucial in terms of merchant segments and geographies. Important strategic considerations include options to go through merchant acquirers. The other payment methods to support the provision of POS services allows us to enable merchants to operate flawlessly online.

For merchants, acquiring payments have become more strategic. Tactical initiatives in the past years have usually led to the use of various gateways on the different parts of the business. With this combined with the POS estates growing older and new regulations, we are presented an opportunity for merchants to explain and consolidate their payment providers. They also provide improved analytics and other payment proficiency.

For merchant acquirers, building E-commerce capacity and integrated POS is important. Because of the physical nature of selling, merchant acquisition is still basically a domestic business. But now as E-commerce progresses, merchants become cross-border business and consumers become international, the merchant acquirers must determine their E-commerce strategies a lot more carefully.

Processors and issuers issuer businesses are influenced by cards. Nonetheless, the different payment methods to cards are emerging quickly which is now displacing POS retail sales. Processors and issuers must set strategies that apprehend other payment volumes and which reposition their cards business for digital commerce.

Setting strategies on payment for E-commerce is very important. The business of retail is undertaking a huge shift to E-commerce. It is now replacing in-store for digital acquisition and generating intricate consumer interactions that involve both channels with remarkable implications and opportunities for various business models of all organizations in the value chain. It will be quite exciting to see how E-commerce players navigate through these vital times as these implications turn out.

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