Digital payments play a key role in the development of e-commerce. Over the last few years, we’ve witnessed a real boom in innovations in this field. Modern online payment methods make it easier for customers to make purchases on the internet, while simultaneously increasing conversion and revenues for online stores.

Development of Digital Payments in E-commerce

Online payments have been around since the 1990s when the first online stores were created. However, it was only in the last decade that a real breakthrough in this field occurred. The catalyst was the rapid development of electronic commerce and consumer demand for convenient methods of paying for online purchases.

Today, digital payments are an integral part of e-commerce. According to forecasts by the Statista platform, the global digital payments market is expected to grow by 9.52% between 2024-2028, reaching a value of $16.62 trillion in 2028. This shows how important the ability to pay online is in electronic commerce today.

It can be boldly stated that the development of e-commerce would not be possible without modern, convenient, and secure forms of online payment. They largely stimulate further growth in the popularity of internet shopping.

Digital Payments – Key Trends

Contactless Mobile Payments

One of the most dynamically developing trends in online payments is transactions made using smartphones and NFC technology. This particularly applies to young people – in 2020, 54% of buyers aged 15 to 24 used BLIK payments or QR codes.

BLIK is an innovative digital payment technology on an international scale. Poland is the first market to have adopted this solution on such a wide scale. However, it can be expected that in the coming years it will also become popular in other European countries, such as Slovakia.

Why this popularity? Simply put, mobile payments are just convenient and fast. All you need to do is bring your phone close to the terminal to authorize the transaction. More and more online stores integrate such solutions, accepting BLIK payments or card payments from a mobile app. They are successfully used in industries such as e-grocery (food shopping), music and video streaming, e-press, and mobile games.

For example, Spotify allows you to pay for a premium subscription through Google Pay. Meanwhile, Uber enables payment with BLIK for taxi rides from within the app.

Biometrics in Payments

The use of biometrics significantly increases the security of online transactions. Why? Biometric data is practically impossible to forge. This means unauthorized persons will not be able to make payments. Moreover, biometric identification is extremely fast – just place your finger on the reader or look into the camera for the system to recognize and verify your identity.

For you as a customer, this means greater convenience and time savings. There’s no need to remember passwords or PINs anymore – just confirm the payment with your fingerprint or facial scan. Considering the growing popularity of mobile devices with biometric readers, you can make payments from anywhere in seconds.

“Buy Now, Pay Later” (BNPL) Solutions

“Buy Now, Pay Later” services are a trend that has been breaking popularity records in recent years. They allow you to defer payment for online purchases by up to 30 days.

According to a Polaris Market Research analysis, the global BNPL services market was valued at $6.24 billion in 2022. It is expected to reach a value of over $80.52 billion by 2032, growing at an annual growth rate (CAGR) of 29.2%. Providers of this type of service offer attractive partnership terms to retailers. Meanwhile, customers increasingly consider it a cheaper and more convenient alternative to credit cards.

More and more online stores are deciding to integrate with “Buy Now, Pay Later” services because it effectively increases conversion and sales. For you, this means greater convenience, flexibility, and often the possibility to spread payments over installments.

Integration with Social Media Platforms

Social media are vibrant centers of activity where millions of users scroll through channels every day. Integrating your e-store with social media allows your brand to reach this huge group of recipients.

By enabling users to share their favorite products, purchases, or wish lists directly on their social profiles, you leverage the power of word-of-mouth marketing. Each share attracts potential customers to your brand, increases your reach, and brand visibility.

Impact of Payment Trends on E-commerce

Modern online payment systems positively impact the e-commerce market in several significant ways.

Firstly, they significantly streamline and accelerate the completion of online purchases. Innovative solutions like BLIK or Google Pay allow payments to be made in just a few seconds, without manually filling out forms. This greatly streamlines the purchase path for customers.

Moreover, modern technology enables the customization of payment methods to the needs of specific users. For example, digital wallets remember your preferred payment methods and suggest them for future purchases.

As a result, consumer expectations and shopping habits regarding online transactions are changing. Customers increasingly value the convenience, speed, and security of online payments. There is a growing demand for modern solutions in this area.

One thing is certain – innovations in digital payment systems positively affect the e-commerce market. They not only improve customer experience but also adapt to customer needs and build a competitive advantage for your online store.

Challenges and Future of Digital Payments in E-commerce

As with most modern technologies, one of the biggest challenges facing digital payments is security. New online payment methods mean processing many sensitive personal and financial data of customers. Therefore, it is crucial to secure them against hacking and identity theft.

Unfortunately, threats from hackers are constantly growing, so IT specialists face a challenging task. They should use various advanced data encryption techniques and user authentication. However, digital security alone will not protect companies from cyber-attacks. The weakest link in any security system is the human, so technological development should go hand in hand with training and raising staff awareness.

Another issue is legal matters and compliance with regulations concerning payment processing. This involves regulations on personal data protection, anti-money laundering, and many others. Regulations often change, so companies incur significant costs to monitor these issues and comply with requirements. This is not easy, as it requires the involvement of lawyers and compliance departments.

There are also technological challenges, such as integrating new payment methods with the software and checkout system of an online store. This requires expert knowledge from programmers and IT specialists, which often entails significant financial costs.