Picture this. It's Black Friday, and you’re waiting to snag a new laptop from an online retailer. You’ve researched, compared prices, and are ready to purchase as soon as the sale goes live. But when you reach the checkout page, you encounter a problem—the site only offers credit card payments, and you just misplaced yours. Frustrated, you search for another retailer, find one that offers flexible payment options, and complete your purchase there.
This story of lost revenue is just one example of why businesses need to adopt diverse payment methods to support customers. Online shopping is always evolving—but is your business adapting to keep up? In this piece, you’ll discover the key payment trends shaping e-commerce in 2024 and beyond so you can prepare for change, including:
Canadians have been using e-transfers to send money between family and friends for years—but this payment method is now gaining traction for paying businesses, too. e-transfers allow online shoppers to instantly send money from their bank accounts, bypassing the need for credit or debit cards and reducing reliance on intermediaries. For businesses, this shift not only simplifies transactions, but also cuts down on fees incurred from payment methods like credit or cheque.
Interac e-Transfer is leading this trend in Canada, connecting financial institutions through a reliable network that allows for fast and secure money transfers, which can be sent via email or SMS. Thanks to its popularity for personal use, 52% of Canadians are just as comfortable paying a business by Interac e-Transfer as they are with other payment methods. And because younger generations are more cautious about credit card debt, offering this flexible payment method could keep cost-conscious consumers loyal to your e-commerce business.
Using a secure API like DCGroup’s Interac e-Transfer solution, your business can automate inbound payments via auto deposits that add the funds directly to your bank account. You can further capitalize on this shift by promoting features like In-App Completion that allows customers to pay directly in your mobile app, or Request Money to prompt e-Transfers from your online orders.
While usage of crypto in mainstream payments remains generally low, some innovative and established companies are paving the way. Recently, Ferrari began accepting cryptocurrency for purchases in the U.S. and plans to expand this payment option to Europe. In August 2023, PayPal announced the launch of PayPal USD (PPUSD), described as a “U.S. dollar denominated stablecoin designed for payments,” that “can be utilized not only within PayPal's own payment processing system but also on other platforms.”
These moves aren’t just driven by the enhanced security and transparency that blockchain technology offers, but also by demand from niche groups of consumers. A 2023 survey of gamers revealed 87% of respondents would feel comfortable paying for online purchases with crypto, and 40% would use it more if given the opportunity.
Cryptocurrency payments are forecast to grow at a compound annual growth rate of nearly 17% between 2022 and 2029. For e-commerce, this growth will heavily involve the use of third-party providers that convert these digital currencies into fiat currency, giving you the flexibility and ease of integrating crypto payments into your online platform.
The expansion of crypto payments is not without challenges. Regulatory hurdles and the risk of fraud are notable concerns that could slow the speed of adoption. However, as solutions to these issues advance and as crypto payment infrastructure strengthens, we can expect to see more e-commerce businesses taking the leap.
As a consumer, you may have firsthand experience having your credit card cancelled or order declined due to fraud suspicion—but just how prevalent is the problem? In 2022 alone, 44% of credit card users reported multiple fraudulent charges, and over the next decade, it’s expected to cost the card industry over $400 billion. These shocking statistics are why 62% of businesses consider fraud prevention an urgent concern.
In response, many e-commerce platforms are relying on advanced technologies to help fight fraud, including:
If your business can’t afford to lose money to fraudulent purchases, taking a proactive approach and adopting some of these measures could be a worthwhile investment. Integrating these systems into your operations can help you preemptively address threats and protect both your business and your customers.
Embedded payments are shaking up the way we shop by integrating payment processing directly into platforms like blogs, social media, and apps. These integrations can enhance your customer experience by keeping shoppers within the original content platform. In fact, 52% of 25- to 34-year-olds say that using financial products and services from their favourite brands is their preferred payment option and is more convenient than using a conventional bank.
The market for embedded payments is projected to exceed $138 billion by 2026—more than a three-fold increase over a five-year period. You can see this trend in action in Starbucks' beloved loyalty app, which effectively functions like a bank by allowing customers to load funds, earn rewards, and pre-order their morning java. The app held over $1.8 billion in deposits as of Q2 2023—effectively making Starbucks larger than 90% of individual U.S. banks by deposit size.
These advancements in embedded payments are largely driven by fintech innovations that allow non-financial merchants to integrate sophisticated payment solutions. Companies are now leveraging technology partners that specialize in payment processing to transform their online platforms into comprehensive payment gateways. This simplifies the consumer experience and expands their business capabilities.
Staying ahead of consumer preferences, security concerns, and advancements in fintech can be challenging—but the e-commerce businesses that tap into these trends will become the shopper’s choice, and you don’t have to go it alone.
DCGroup can help your business get ahead of payment preferences with secure payments solutions that flex to meet your business needs. From Interac e-Transfer Solutions that streamline payments to Mobile App Integrations that embed ordering and Flexible Identity Solutions that reduce fraud—we have it all. When you’re ready to enhance your e-commerce capabilities, book your demo to learn more.