Worldpay and NORA Network on the future of global retail
Recently, Worldpay and NORA held its first-ever live, video recorded webinar together.
After seeing it first hand, we’ve decided the insights gleaned were too good to keep to the select initial registrants, and have broken down for you the “best bits” – with even more helpful tips for retailers on global eCommerce markets, growth, trends and predictions.
Read on to discover five key take-aways:
1. eCommerce market expansion
We say it all the time, but, truly, when it comes to being successful internationally and expanding eCommerce market activities, it’s so important to localise the shopping experience. For retailers, getting their international growth strategy right also requires a more comprehensive, multi-faceted approach.
Shoppers are embracing new ways to pay, valuing convenience and security offered by eWallets and other APMs. Using localised methods will help to create a seamless experience but to truly win at eCommerce market expansion and differentiate yourself there are other areas of consideration. This is especially relevant for emerging markets, who value the use of APMs over traditional card methods.
Logistical plans will be the foundation to your success. Retailers need to be efficient. Each item order should arrive to its destination fast and at the lowest fees possible. This service needs to be specialised for each country as we’ve seen some countries prefer pickup points and a more flexible structure rather than home delivery.
Building on top of this, a new market could be a more welcoming place if you collaborate and work with other companies. Partnership could be the best tool to benefit both companies and help in numerous areas such offering the most popular localised payment methods. A partnership can act as a foot in the door to accessing a new markets potential but also allowing retailers and brands to offer a greater value proposition.
To also cope with localised complexity of domestic payment schemes and APMs, streamlining the management of these APMs can offer retailers a cost-effective way of coping and enabling a frictionless payment experience. Tailoring the shopping and payment experience as much as possible is invaluable retail partner ecosystem.Watch the video
2. Millennials are the driving force behind the shift in debit and credit
Having grown up in the midst of the last financial crisis, millennials are now more debt-conscious than generations before. As a result, 63% of Millennials have a saving goal which is much higher than older generations1, and they’re also much more likely to spend with their debit card over credit, using only money they have, rather than money they’d like to pay back later at a premium.
Millennials are the driving force of change in the payments landscape. Their approach to spending and how they want to part with their money is noticeably different to previous generations. As touched on, there has been a shift in the most popular plastic – increasingly using debit over credit cards. Just like the transitioning popularity for debit over credit, retailers need to cater for a number of Millennial spending habits with noticeable characteristics, both in Australia and beyond.
One of their distinct characteristics is an affinity for technology, viewed by millennials as a powerful tool to help envision their financial goals and improve with financial visibility.
Technology is a facilitator in helping to financially plan. More tech-curious than other generations, young people are also at the forefront of how it can change and improve their daily lives. In fact, 4/5 of millennials say they’d be open to innovation within digital payments in the future, compared to only 67% of other generations1.
Millennials will continue to be the driving force of change within payments in the future. Constant innovations within this landscape will be a recurring trend. There are preference differences throughout the world but with their spending power, learning these differences and discovering regional emerging trends will be key.Watch the video
3. How are drones battling fraud?
An increasingly worrying concern for both retailer and customer alike, parcel fraud is a huge obstacle to eCommerce, and it’s set to continue growing. This has led Worldpay’s Innovation Team to spring into action.
We are currently some way off seeing these innovative flying machines take to the sky with deliveries, but with an estimated 80% of deliveries predicted to be carried out by autonomous vehicles/crafts in 2024 it is fast becoming less of an alien concept.
Our proof of concept, “Drone Pay”, takes it one step further by extending to combat parcel fraud with payment verification. Simply, when delivering, the drone only takes payment and releases a package once the recipient is confirmed by use of a landing mat.
Large investments are underway in autonomous delivery. And with growing demand for fast delivery services, logistical and a supply side infrastructure will have an even greater importance. By replacing labour with automation is a key area within the logistics of the supply chain.
Drone delivery also opens a great opportunity for retailers to partner with companies offering automated delivery. The technology is rapidly moving toward market maturity and as global eCommerce continues to dominate, retailer can win with a first-mover advantage through effective innovations like Drone Pay and other automated delivery.Watch the video
4. A mobile-first world
As the mobile world becomes more apparent in everyday consumer life, mobile commerce has been one of the most dramatic changes to the way people shop since the advent of eCommerce itself.
mCommerce will continue to rise in prominence especially with the constant advances in technological innovation. In an era of instant gratification and disruptive technologies, optimisation and understanding how to best accommodate mobile is the main focus for many retailers and brands looking to stay ahead of the innovation curve.
Growth of the mobile payment market has increased steadily year-on-year since 2015.2 As we move farther away from cash, it seems inevitable that we’ll see continued adoption and development of mobile payment systems. This is particularly important for the fast-growing markets as the mobile is a critical touchpoint for online purchasing and customer engagement.
What makes mCommerce so successful is that it allows shoppers to embrace new ways to pay through APMs. Shoppers highly value convenience and security which is offered by eWallets and APMs. This includes methods such as: Alipay, WeChatPay, Paypal, Visa Checkout, etc.
What it takes to win at mobile requires a comprehensive approach, but, essentially, tailoring the experience and making it as seamless as possible. In the era of instant gratification and shopper experience, a frictionless mobile experience is expected. Retailers need to ensure that all the key steps are taken to ensure success.Watch the video
5. The dominance of online marketplaces
Over the past 15 years, marketplaces have taken over the world. From eBay and Amazon, to Newegg and Mercado Libre, to AliExpress and Tmall, they're the primary eCommerce channels for many consumers and they’re growing at monumental rates.
In a global sense, we are now at a point where over 50% of global spend occurs within marketplaces.3 This means marketplaces are very important consideration to any retailer’s future strategy. And while each region has their share of marketplace behemoths, nowhere is the phenomenon is best demonstrated than in China, where their impact is irrefutable.
Chinese eCommerce is set to top $1.5 trillion by 2021, with Alibaba group dominating the landscape. Expect more innovation and convenient technologies to be offered by these powerful marketplaces but also more offline activity, such as creating unique brick and mortar shopping experiences.
Digital marketplaces are critical consumer touch point for brands and retailers and why retailers need to win at them. In China, it's making millions of consumers newly addressable for cross-border commerce every year and why retailers need to invest. Retailers need to understand China’s digital marketplaces in order to win at them.Watch the video