Anyone who follows tech news is likely to have read about Amazon’s latest ambition to revolutionize in-store shopping with Amazon Go. Shoppers can walk into a store, grab what they need and leave – no lines, no checkout – thanks to its “just-walk-out” technology.
The future of in-store shopping promises to be seamless, but it’s still surprisingly complicated to pay for your goods online. Paying by credit card is a hassle, especially on mobile, where you are forced to key in a long string of numbers. Not to mention, credit cards carry fees that add up. Why should shoppers have to pay via middlemen like cards or wallets when they could pay straight from the source of their money: their bank account?
Despite the fact that online payments are still too complicated, global cross-border e-commerce is booming. In the UK alone, a whopping £3.3 billion was spent online from Black Friday through Cyber Monday this year. Last year, 58% of online British consumers bought a product from overseas, making the UK one of the leading markets for cross-border e-commerce. While they are currently turning to products from American and Chinese websites, German retailers are attracting increasing traffic from the UK.
And now for the inconvenient truth: many shoppers are likely to abandon their carts if their preferred payment method is not available. Merchants that don’t allow the consumer to pay in the way he/she likes are losing out on revenue.
Many consumers, in particular in the Nordics, prefer to pay by means of an online banking payment rather than by a card payment.
That’s something we’ve aimed to address here at Trustly. By allowing more than 400 million European consumers to pay directly from their bank accounts, merchants are able to ensure that those who prefer to pay in this way can do so. And if a refund is needed, Trustly ensures it goes straight back to the bank account from which the payment was made, without the need for any manual work on the side of the merchant.
As an additional benefit, Trustly confirms that the required funds are available in the shopper’s online bank account and allows immediate payment authorisation. The transaction is then both instant and irreversible, nixing fraudulent chargebacks. Online merchants can sign one agreement and offer an alternative payment method for their customers all across Europe.
The ease with which consumers will be able to make purchases online from any device, straight from their bank accounts, means that e-commerce will finally be able to reach its full potential. In the near future, payments will become a second thought for consumers both online and off, whether they’re shopping from an online retailer in France or at the corner shop.