E-commerce has been around longer than most people would think, but the truth remains that it has picked up pace only over the past decade or so. And yet, it has managed to establish itself as a critical part of the modern global economy. This transformation can be chalked up to various factors, including how different modern technologies have helped take the sector to the next level. And among these technologies above, one that has had and will continue to shape the future of e-commerce is FinTech. This is because of the ability to enable seamless movement of money.
You can imagine why that would be incredibly valuable to the e-commerce sector, yes? However, it is not the only reason why FinTech has been deemed integral to e-commerce at this point. You see, the e-commerce ecosystem is continually evolving — evolving following the market, trends, and countless other factors that affect in a million different ways. And you know what has helped the sector not only survive these intense upheavals and the continued evolution but thrive because of it? FinTech. Take digital payments; for example — they enabled seamless payments and helped foster trust and drive increased adoption.
Now, let’s take a look at some of the other ways the sector stands to benefit from FinTech:
- Foster trust: Initially, the need for online transactions was mired in doubt and suffered the wrath of buyers’ distrust. Thankfully, FinTech empowered the sector and the world with digital payments, which enabled payments, money transfers and more seamlessly and safely. This contribution from the world of FinTech has played a vital role in fostering trust in the e-commerce industry, which meant more orders and better businesses for digital retailers.
- Global reach: Yet another critical benefit FinTech has brought to the table for the e-commerce sector is the ability to transcend geographical borders. Sure enough, the fact that e-commerce is digital already meant global reach, but that meant nothing without the ability to make payments from across the frame as well. And not only that, FinTech has given e-commerce retailers the ability to extend the same facilities to international customers, such as refunds, EMIs, etc.
- Advanced payment options: The constant evolution of technology has ensured that digital payments have evolved considerably. This, then, has translated into the extension of customer-friendly, modern payment options such as online loans. With FinTech being further fortified with blockchain, keeping track of bills, receipts, logistics and more have also been rendered that much simpler. Now that blockchain is part of the equation, too, the logistics part of e-commerce has received a significant boost, enabling risk mitigation, cost savings, etc.
As you can see, FinTech and e-commerce seem like one of the potent pairs in the modern business world. And suppose you too wish to take advantage of this duo. In that case, we recommend engaging the services of a trusted provider for fintech software development services.