Technology keeps advancing year after year, improving the way we live and do business. One of the best things that technology is changing is the financial element of the online world, most notably e-commerce. What used to be unavailable is now more reachable and available than ever.
Fintech and payment innovation have greatly affected the
world – they brought mobile payments, online payments, shopping online
and digital money. Here is how they will continue to affect e-commerce:
It will help companies target the unbanked
Central Bank of Nigeria reported in July 2018 that Nigeria's unbanked
population stood at 37%, with the majority from rural areas.
Interestingly, developments in digital money and fintech have enabled
the kind of financial inclusion that banks can't. Fintech offers safe
and simple alternatives to regular banks and it powers a good financial
inclusion in these regions. It also facilitates money transfers between
users, mobile payments, increases the popularity of digital currencies
It will continue to improve digital payments
make online payments seamless for its customers, Jumia introduced Jumia
Pay. Since inception, it has encouraged pre-payment because it's very
secure and has a fast refund timeline. This success can be attributed
specifically to the development of fintech and payment innovations. The
payment process used to be much more complicated. For a user to purchase
something online, they had to stand in lines at the bank to complete
the payment and everything was much slower. Now, because of fintechs,
people can pay for products and services from the comfort of their home
with just a few clicks.
New payment companies are breaking through
with big and popular payment companies, there are some new payment
companies finding their way and their customers. Some of the payment
gateways are Flutterwave, Paystack and Jumia Pay for example. These
young companies have discovered their own way of doing things. They have
all made payment for online transactions less stressful.
It drives technology advancements
of the impact of fintech and payment innovations you can notice on
e-commerce platforms. They have changed and developed in the past decade
from simple websites to these vehicles of modern trade.
Fintech promotes collaboration among countries
that the countries are not always at their best when it comes to global
transfers, syncing and finding payment solutions, fintech greatly
improves the relationship between them. E-commerce companies which
intend to work with locally based suppliers have to understand the
basics of how the local economy works and what the preferred payment
options are. They have to understand the laws, keep up with quality
technological platforms and all in all, stay on top of things that
happen in that country. This is one of the ways fintech improves the
world – by helping it bridge the differences.