Ecommerce giants look to dominate payment gateways

Ecommerce competition is heating up globally, with giants Amazon, Apple, Alibaba, Tencent and eBay all vying for bigger stakes in the market. Retail sales are expected to surpass $27 trillion by 2020, and ecommerce is expected to account for more than $4 trillion of that figure.

One key area that is becoming the next battleground for these companies is payments. Payments may seem to be an inherent part of ecommerce platforms that facilitates the checkout process. However, the boom of financial technology (fintech) has made payments a major segment in financial services, creating major opportunities for these businesses to tap into wider markets.

Building ecommerce ecosystems

Ecommerce isn’t about who has the biggest inventory or who provides overnight shipping anymore. It also isn’t simply about a single defining feature or functionality in a website or an app. It’s about who can provide the best customer experience. In order to deliver this, retailers need to build up capabilities across all fronts: products, price, user experience, logistics, support and, of course, payments.

Forget platforms. Forget application suites. It’s about building ecosystems.
What’s emerging as a critical component of today’s ecommerce ecosystems is payments. Customers demand a quick, secure and convenient way to pay for purchases. According to marketing automation platform GetResponse, complicated checkout processes, card security and not having enough payment methods are all factors in shopping cart abandonment.

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