eBay Launches Venmo as a Payment Option
Hey Payments Fanatic!
eBay is enhancing its payment options by incorporating Venmo at checkout.
This addition of a contemporary, widely-used payment method reflects the changing preferences of today’s tech-savvy consumers.
Venmo, particularly favored by Gen Z and Millennials, allows users to pay using their Venmo balance, or their linked bank account, debit card, or credit card.
With over 90 million active users, Venmo is a platform well-suited to eBay's mobile-first audience. Notably, 28% of Venmo’s users are aged 18 to 29, a demographic known for its technological adeptness.
Given that over 60% of eBay's transactions are conducted via mobile devices, the integration of Venmo aligns perfectly with the needs of digitally-savvy shoppers seeking a seamless and swift checkout process.
U.S. buyers will be able to use Venmo for their purchases on eBay.com and the eBay app starting next week.
Cheers,
INSIGHTS
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GOLDEN NUGGET
🤔Understanding Payment Orchestration
Let me break it down for you:
In the 1990s, with the rise of Ecommerce, the first Payment Gateways came into existence. However, they lacked today's advanced collection and reconciliation tools.
The 2000s saw integrations between developers and gateways due to limitations in serving all customers through one gateway.
By the 2010s, PSPs transformed, introducing alternative payment methods, fraud prevention, and global payments in local currencies.
The 2020s witnessed a shift, with over 60% of retailers using multiple payment providers and payment orchestration becoming essential for businesses.
What is Payment Orchestration?
Drawing from the world of music, payment orchestration functions similarly to a maestro harmonizing an orchestra🎼
This system blends multiple payment processes, offering an efficient and streamlined transaction route.
It centralizes various gateways, ensuring a smooth consumer checkout.
Integrated reporting provides a unified data view, and "smart routing" auto-directs transactions through the best route.
Europe's e-commerce data shows that roughly a quarter of Mastercard's payment authentications in early 2021 failed. Smart routing in payment orchestration aims to combat such issues.
Business Research Insights predicts that by 2027, the payment orchestration market will be valued at nearly $5 billion.
Key advantages of payment orchestration include:
1️⃣ Cost and Time Efficiency: Merchants can choose lower transaction fees from a range of providers.
2️⃣ Increased Conversion: Improved customer experience boosts conversion rates. Factors like smart routing, diverse payment methods, and local currency support play significant roles.
3️⃣ Transaction Success: With the rise in digital payments, ensuring transaction success becomes vital. Payment orchestration can notably reduce decline rates.
4️⃣ Customer Loyalty: Offering preferred payment methods enhances the buying experience, fostering customer loyalty.
5️⃣ Global Expansion: For businesses aiming globally, understanding regional payment preferences is crucial.
6️⃣ Rapid Scaling: Merchants can swiftly integrate solutions supporting business growth.
7️⃣ Fraud Reduction: A consolidated platform with multiple payment methods aids in fraud prevention.
8️⃣ Automatic Reconciliation: This feature minimizes errors, saving internal resources and enhancing efficiency.
9️⃣ Real-time Ledgers (RTLs): RTLs provide almost instant financial data visibility, ensuring transactional integrity.
I highly recommend downloading this complete FinTech Report which I used as a source for this piece, for more interesting info on this topic: https://lnkd.in/eUTPpJiP
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