Latest Updates in Fintech for Marketplaces and Online Platforms — Trends and Innovation
Then versus now
Ecommerce has forever changed our relationship with shopping. In 1982 — when what many consider the first online marketplace, the Boston Computer Exchange (BCE), was launched, long before the Internet became easily accessible to the public — today’s reality was more a figment of somebody’s imagination than an actual possibility. At the time, the BCE worked as a consumer-to-consumer (C2C) database where customers in the US could check out real-time listings from other people selling and buying computers.
Today, in mere minutes, we can buy almost anything online and have these goods delivered to our homes — in some cases, on the same day. The convenience we enjoy has been made possible by the constant evolution of payment technologies and the growing consumer trust in online transactions. The latter was facilitated, in part, by the introduction of global regulations such as the Payment Card Industry Data Security Standard (PCI DSS), consumer-data protection laws like the General Data Protection Regulation (GDPR), and various regulations such as the onset of chargeback provisions from payment processing networks like Visa or Mastercard, among others. Moreover, advanced logistics and fulfilment services, digital literacy, the shift in customer behaviours following the outbreak of the pandemic, and the increasing demand for digital payments have also played a significant role in making today’s reality possible.
The Fintech for Marketplaces and Platforms Report 2024 — Leveraging the Latest Paytech, Regtech, and Embedded Finance Innovations is designed to offer readers an analysis of the latest developments and actionable insights to help them gain a competitive edge.
In 2024, global retail ecommerce sales will exceed USD 6.3 trillion. The important role marketplaces play in this cannot be denied. According to Statista, from 2023 onwards, online marketplaces have accounted for the largest proportion of online purchases worldwide. Looking ahead, ecommerce is expected to amass 3.6 billion users by 2029, and the average revenue per user (ARPU) is projected to reach USD 1,620, both indicators of the future growth of the marketplace landscape.
Despite the current popularity of online platforms and marketplaces, several challenges and complexities arise in the field — from managing suppliers, payments, reconciliation, and customer experiences, to regulatory compliance. To earn consumers’ trust, boost sales, and ensure growth, marketplaces must leverage the right data, tap into key learnings from subject-matter experts, and forge the right partnerships.
To address these needs, the Fintech for Marketplaces and Platforms Report 2024 published by The Paypers brings together representatives from top consultancies, marketplaces, and solution providers who share strategic insights.
Today’s emerging trends
As the popularity of marketplaces and online platforms surges, certain trends are taking centre stage. With the rapid adoption of mobile devices, especially in regions lacking other digital infrastructure, mobile shopping is gaining momentum, with nearly a third (30%) of global online shoppers using mobile commerce every week in 2023. Despite their popularity, some challenges to mobile shopping need to be addressed, as research shows that mobile phones have the lowest conversion rate across all devices, with consumers preferring to use desktop computers for larger expenses. To put this into perspective, statistics indicate that desktop users spent an average of USD 159 per online order at the end of 2023, compared to USD 103 for mobile phone orders.
Another important driving force has been social commerce, as more and more consumers use social media platforms to discover and purchase products. According to a recent Nielsen report, more than half (59%) of the US consumers surveyed reported that they are more likely to buy products endorsed by their favourite influencers. By 2030, the value of social commerce sales is anticipated to reach USD 8.5 trillion.
In a bid to offer customers a hyper-personalised shopping experience, the use of artificial intelligence (AI) has also gained momentum. While nowadays the trend is being leveraged worldwide, marketplace giants such as China’s Taobao have embraced AI for recommendations since 2021. Furthermore, loyalty has emerged as a major trend in 2024, with more and more brands and marketplaces embracing specialised programmes to foster customer retention, acquisition, and trust.
A glimpse into what to expect
With a clear aim to tackle the main challenges marketplaces and online platforms are currently facing, the Fintech for Marketplaces and Platforms Report 2024 follows a clear structure, aiming to offer the most recent insights on key topics. It offers an extensive analysis of relevant technological developments and their impact on ecommerce, shedding light on the global marketplace landscape and the payment trends that influence its evolution, whilst addressing specific pain points and providing insights into how to tackle them to ensure platform success.
Some of the topics covered include:
· An exploration of the evolving marketplace and online platform landscape, from current trends and market insights to future directions;
· How to optimise payments to expedite growth, with a breakdown of global payment acceptance, foreign exchange and how to improve the process, digital wallet integration to enhance user experience, and other relevant topics;
· Embedded Finance and how it contributes to the evolution of ecommerce;
· Fraud-related challenges and how to address them, whilst driving trust and security;
· A close examination of ecommerce verticals and their specifics in terms of payment trends and consumer behaviour.
Original research by The Paypers
Alongside contributions from industry leaders, the report features a set of infographics, researched by The Paypers, showcasing leading marketplaces and online platforms. They are classified based on three variables:
· the regions where they are present (Europe, Asia–Pacific, Middle East and Africa, North America, Latin America, and global);
· the verticals in which they operate (consumer goods and services, gig market and recruiting, and hospitality and travel);
· the target groups they address (B2C, B2B, and C2C).
The future of marketplaces and online platforms is under constant transformation. The Paypers invites you to download your free copy of the report HERE to ensure you’re one step ahead of your competition!
About Diana Lupuleac
Diana is an experienced and dedicated Senior Editor at The Paypers. She has an extensive background in content creation and is a graduate of Foreign Languages and Literature studies, currently specialising in payments and ecommerce. She strives to bring forward the latest trends for our readers, while investigating the ever-evolving landscape of cross-border payments, B2C and B2B ecommerce, and emerging technologies across the globe. You can reach her via email at diana@thepaypers.com or on LinkedIn.
