Undoubtedly, the trend of shopping online keeps growing. Especially during the pandemic, many companies set up e-commerce sites alongside their physical sales channels and made their first online sales. With the effect of this period, it would probably not be wrong to say that e-commerce transaction volume will grow exponentially.
According to BKM’s March 2020 data;
The grocery sector was among the sectors with the largest increase in online card payment amounts. Online payments in the grocery sector rose to roughly 2.5 times the same period of the previous year, reaching 1.7 billion TL.
In March, 1 TL out of every 5 TL of card payments was made online, and 3 million cards were used for online payments for the first time. The online card payment amount rose 19 percent compared with the same period last year to 16.5 billion TL. Among the reasons for this change are the shifting payment habits of working women and young people.
As e-commerce grows, the appetite of those who want to enter this field is also growing considerably. In a field with many competitors, those who can differentiate themselves, put users at ease at the payment stage and provide a secure payment experience will be more fortunate.
So at this point, would it be better to work with a bank or with a payment institution?
For e-commerce sites to get a virtual POS through banks, they have to go through many processes and apply separately to each bank they plan to work with.
If an agreement is made with a payment institution, integration with almost all banks can be established with a single application and a single integration, without going to a bank.
In addition, when working with a payment institution, single-payment and installment transactions can be made with almost all bank credit cards.
Payment institutions also offer solutions to reduce the cart abandonment (drop-out) rate, one of the biggest obstacles to e-commerce sites’ sales.
If you work with a payment institution, you can also offer your customers many new-generation payment options.
For example: accepting payments via a link, accepting payments via SMS/email, making 3D Secure transactions on a mobile POS, etc.
In light of the above, when working with a payment institution, many features that increase the customer’s sales volume and sales convenience are also provided to merchants, helping merchants get a step ahead of their competitors in payments. We can say that payment institutions will be even more effective in the market and will take part not as competitors of banks but as business partners of banks.
