e-commerce | Bm2Pay https://www.bm2pay.com Unlimited Payments Solutions Tue, 22 Oct 2019 04:37:05 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.4 https://www.bm2pay.com/wp-content/uploads/2024/11/cropped-bm2pay-1-32x32.jpeg e-commerce | Bm2Pay https://www.bm2pay.com 32 32 Your Guide to Basic Terms in the Banking Sector https://www.bm2pay.com/2019/10/22/your-guide-to-basic-terms-in-the-banking-sector/ https://www.bm2pay.com/2019/10/22/your-guide-to-basic-terms-in-the-banking-sector/#respond Tue, 22 Oct 2019 04:00:53 +0000 https://www.bm2pay.com/?p=3634 If you are just starting out as an online or in-store merchant, there is a lot to learn about banking and money transfers, payment methods, cross-border transactions, regulations, local currencies and more.   In this post we will introduce you to some of the terminology used regularly in the banking sector.  BANKING TERMS: Bank Wire/Wire Transfer  A bank wire is an electronic message system, which enables banks to communicate regarding various actions or developments connected to client accounts. A wire transfer, on the other hand, constitutes the electronic transfer of funds across a network, which may contain a large global group of bank administrators. Wire transfers enable individuals or businesses in different geographic locations to safely transfer money to various entities.  SWIFT Code The SWIFT code of the Society for Worldwide Interbank Financial Telecommunication is an internationally-recognized identification code for various banks around the world. SWIFT codes are generally used for international wire transfers, and are comprised of 8 or 11 alphanumeric characters. If you plan to send money to an entity overseas, you will need to have the recipient’s SWIFT in order to perform the transfer.  Virtual IBANs An IBAN (International Bank Account Number), is a virtual account issued by a bank, which enables the account holder to receive incoming payments and reroute them to a real bank account. Virtual IBANs provide all the functionalities of traditional bank accounts such as sending and receiving payments, bank statements, and more. IBANs enable international companies processing transactions in different currencies to easily reconcile all incoming payments. Using IBANs, these merchants can allocate a unique virtual account to receive payments from each client and for each currency, thereby increasing efficiency and cutting costs. SEPA The European Union (EU) created SEPA (Single Euro Payment Area) as a payments ecosystem which regulates how cashless payments are transacted between Euro countries. European consumers, businesses, and government agencies that make payments via direct debit, credit card or through credit transfers use the SEPA system. In the designated zone, businesses can carry out various transactions in Euros, regardless of their location. Correspondent Bank Correspondent banks are financial entities that serve as agents on behalf of other financial institutions, often foreign banks. Correspondent banks may handle foreign exchange, manage international investments, facilitate international trade and provide other services to the foreign bank in exchange for a fee. Foreign banks avail themselves of the services of correspondent banks when they are unable to establish a branch in a given country.  EMI  The Electronic Money Institution (EMI) supplies licenses for issuing electronic money. It allows certain entities to issue their own currency, which can be used outside the location of the payment system. It can also be converted to other currencies and service third-party payments. In addition, the EMI license allows the created currency to bind already existing payment bank cards to client sub-accounts. EMI licenses enable the issuing of cards of major vendors (VISA, MC, etc) and even the creation of an independent card payment system. STAY TUNED FOR OUR NEXT BLOG POST ABOUT PAYMENT TERMINOLOGY    Image courtesy of studiogstock

The post Your Guide to Basic Terms in the Banking Sector first appeared on Bm2Pay.]]> If you are just starting out as an online or in-store merchant, there is a lot to learn about banking and money transfers, payment methods, cross-border transactions, regulations, local currencies and more.  

In this post we will introduce you to some of the terminology used regularly in the banking sector. 

BANKING TERMS:

Bank Wire/Wire Transfer 

A bank wire is an electronic message system, which enables banks to communicate regarding various actions or developments connected to client accounts. A wire transfer, on the other hand, constitutes the electronic transfer of funds across a network, which may contain a large global group of bank administrators. Wire transfers enable individuals or businesses in different geographic locations to safely transfer money to various entities. 

SWIFT Code

The SWIFT code of the Society for Worldwide Interbank Financial Telecommunication is an internationally-recognized identification code for various banks around the world. SWIFT codes are generally used for international wire transfers, and are comprised of 8 or 11 alphanumeric characters. If you plan to send money to an entity overseas, you will need to have the recipient’s SWIFT in order to perform the transfer. 

Virtual IBANs

An IBAN (International Bank Account Number), is a virtual account issued by a bank, which enables the account holder to receive incoming payments and reroute them to a real bank account. Virtual IBANs provide all the functionalities of traditional bank accounts such as sending and receiving payments, bank statements, and more. IBANs enable international companies processing transactions in different currencies to easily reconcile all incoming payments. Using IBANs, these merchants can allocate a unique virtual account to receive payments from each client and for each currency, thereby increasing efficiency and cutting costs.

SEPA

The European Union (EU) created SEPA (Single Euro Payment Area) as a payments ecosystem which regulates how cashless payments are transacted between Euro countries. European consumers, businesses, and government agencies that make payments via direct debit, credit card or through credit transfers use the SEPA system. In the designated zone, businesses can carry out various transactions in Euros, regardless of their location.

Correspondent Bank

Correspondent banks are financial entities that serve as agents on behalf of other financial institutions, often foreign banks. Correspondent banks may handle foreign exchange, manage international investments, facilitate international trade and provide other services to the foreign bank in exchange for a fee. Foreign banks avail themselves of the services of correspondent banks when they are unable to establish a branch in a given country. 

EMI 

The Electronic Money Institution (EMI) supplies licenses for issuing electronic money. It allows certain entities to issue their own currency, which can be used outside the location of the payment system. It can also be converted to other currencies and service third-party payments. In addition, the EMI license allows the created currency to bind already existing payment bank cards to client sub-accounts. EMI licenses enable the issuing of cards of major vendors (VISA, MC, etc) and even the creation of an independent card payment system.

STAY TUNED FOR OUR NEXT BLOG POST ABOUT PAYMENT TERMINOLOGY

 

 Image courtesy of studiogstock
The post Your Guide to Basic Terms in the Banking Sector first appeared on Bm2Pay.]]> https://www.bm2pay.com/2019/10/22/your-guide-to-basic-terms-in-the-banking-sector/feed/ 0 Start the Countdown for Your 2019/2020 Holiday Season Campaign https://www.bm2pay.com/2019/08/26/start-the-countdown-for-your-2019-2020-holiday-season-campaign/ https://www.bm2pay.com/2019/08/26/start-the-countdown-for-your-2019-2020-holiday-season-campaign/#respond Mon, 26 Aug 2019 05:00:12 +0000 https://www.bm2pay.com/?p=3619 Yes, it’s still hot and sticky in many places, but it’s already time to start planning your marketing strategy for the 2019/2020 winter holiday season. How can you plan an e-commerce campaign that will make you stand out and attract both new and veteran shoppers to your brand?  Review last year’s campaign and check out the competition  Take a good look at last year’s marketing activities and analyze which were the most successful techniques. Did your email campaign bring in new interest? Which social media platform was most successful? Were buyers responsive to special offers and coupons? A good way to get innovative ideas is to check out your competitors. What did they offer last year? Did they come up with special strategies to arouse increased interest in their brand?  Time your campaign carefully First you must determine the basic concept of your campaign. Think about your message and what you are trying to achieve. Then go into the timing, such as the dates when certain products will be promoted, as well as which social media platform you will be using and when (including Instagram, Pinterest, YouTube videos, Facebook, etc). Consider whether you want to add influencers and/or giveaways and contests to the mix. Determine when it is best to add seasonal Google Ad campaigns. Start posting teasers as early as September and plan your posts carefully so that you build up anticipation and lead gradually up to your special surprises as the holidays grow nearer.  Add one-time offers and surprise elements When holding a contest, offer super prizes like a candlelit dinner for two, a romantic couple’s spa day, or bungee jumping for those who love competitive sports, depending on the age and entertainment preferences of your target audience. Create a “mystery box” that includes a random selection of your most popular products worth more than the price you are charging.  Spoil your loyalty club members by offering a grand giveaway right before the holidays in addition to seasonal discounts and special, one-time offers. Create a sense of expectation and excitement to keep your audience riveted. Use personalized content, creative videos and exciting pictures Buyers are not interested in reading lengthy, general content. In order to engage customers you must deliver customized messages that prove your brand’s interest in them as well as providing a solution to their personal problem.  Make a range of innovative videos, from “how tos” to new product showcasing, to customer testimonials. Create a series of clever Instagram stories and upload a variety of exciting pictures to pique curiosity and interest. Come up with a creative holiday theme such as nostalgia, new year resolutions, lifestyle changes, social responsibility or collections. Build on them to create a productive, long-term bond with prospective customers. Think outside-of-the-box Don’t be afraid to let your imagination go a bit wild when it comes to holiday campaigns. To snag weary consumers’ interest, you need to stand out. Try some exciting new stuff related to unique content, humor, surprises and prizes, and see how it all goes down. May the force be with you! Image courtesy of kjpargeter  

The post Start the Countdown for Your 2019/2020 Holiday Season Campaign first appeared on Bm2Pay.]]> Yes, it’s still hot and sticky in many places, but it’s already time to start planning your marketing strategy for the 2019/2020 winter holiday season.

How can you plan an e-commerce campaign that will make you stand out and attract both new and veteran shoppers to your brand? 

Review last year’s campaign and check out the competition 

Take a good look at last year’s marketing activities and analyze which were the most successful techniques. Did your email campaign bring in new interest? Which social media platform was most successful? Were buyers responsive to special offers and coupons?

A good way to get innovative ideas is to check out your competitors. What did they offer last year? Did they come up with special strategies to arouse increased interest in their brand? 

Time your campaign carefully

First you must determine the basic concept of your campaign. Think about your message and what you are trying to achieve. Then go into the timing, such as the dates when certain products will be promoted, as well as which social media platform you will be using and when (including Instagram, Pinterest, YouTube videos, Facebook, etc). Consider whether you want to add influencers and/or giveaways and contests to the mix. Determine when it is best to add seasonal Google Ad campaigns.

Start posting teasers as early as September and plan your posts carefully so that you build up anticipation and lead gradually up to your special surprises as the holidays grow nearer. 

Add one-time offers and surprise elements

When holding a contest, offer super prizes like a candlelit dinner for two, a romantic couple’s spa day, or bungee jumping for those who love competitive sports, depending on the age and entertainment preferences of your target audience. Create a “mystery box” that includes a random selection of your most popular products worth more than the price you are charging. 

Spoil your loyalty club members by offering a grand giveaway right before the holidays in addition to seasonal discounts and special, one-time offers. Create a sense of expectation and excitement to keep your audience riveted.

Use personalized content, creative videos and exciting pictures

Buyers are not interested in reading lengthy, general content. In order to engage customers you must deliver customized messages that prove your brand’s interest in them as well as providing a solution to their personal problem. 

Make a range of innovative videos, from “how tos” to new product showcasing, to customer testimonials. Create a series of clever Instagram stories and upload a variety of exciting pictures to pique curiosity and interest. Come up with a creative holiday theme such as nostalgia, new year resolutions, lifestyle changes, social responsibility or collections. Build on them to create a productive, long-term bond with prospective customers.

Think outside-of-the-box

Don’t be afraid to let your imagination go a bit wild when it comes to holiday campaigns. To snag weary consumers’ interest, you need to stand out. Try some exciting new stuff related to unique content, humor, surprises and prizes, and see how it all goes down. May the force be with you!

Image courtesy of kjpargeter

 

The post Start the Countdown for Your 2019/2020 Holiday Season Campaign first appeared on Bm2Pay.]]> https://www.bm2pay.com/2019/08/26/start-the-countdown-for-your-2019-2020-holiday-season-campaign/feed/ 0 The Inevitable Rise of Contactless Payments https://www.bm2pay.com/2019/08/12/the-inevitable-rise-of-contactless-payments/ https://www.bm2pay.com/2019/08/12/the-inevitable-rise-of-contactless-payments/#respond Mon, 12 Aug 2019 05:00:46 +0000 https://www.bm2pay.com/?p=3480 Investopedia defines contactless payments as a secure method for consumers to purchase products or services via debit, credit or smartcards (also known as chip cards), by using RFID technology or near-field communication (NFC). When making a contactless payment, the user taps their card near a point-of-sale terminal. This type of transaction is frictionless and fast, as no PIN or signature is required. How does contactless payment work? Contactless credit and debit cards use a combination of traditional EMV chips, along with a contactless chip and RFID antenna. In the case of digital wallets, the smartphone contains a pair of chips, one that accesses and encrypts the card information, and the other, a near-field communication chip that transmits the card data to complete the transaction. The digital wallet is installed on a mobile device, enabling users to manage funds and pay with their credit card accounts. Tap-and-pay worldwide Europe is the global leader in the use of contactless cards with nearly one in two transactions contactless. In the UK, the number of contactless transactions rose by 31% in 2018 when compared to the previous year. According to the UK Trade Association, eight out of ten debit cards and six out of ten credit cards are contactless today. The use of contactless cards has received a major boost in the UK since 2015, when the London Transport System began accepting contactless payments. In Canada and CEMEA (Central Europe, Middle East and Africa), nearly 60% of face-to-face transactions are concluded with a tap. In Asia Pacific, contactless payments constitute more than one-third of face-to-face transactions. Contactless payments in the US Up until recently, the US has lagged behind Europe when it comes to contactless payments. However, at the end of May, New York became the first US city to enable subway and bus riders to start tapping a contactless bank card or their mobile wallet to pay fares. The adoption of tap-and-pay technology in cities like Boston, Chicago and San Diego should give contactless payment further impetus. Issuers jump on the bandwagon Visa has announced that it expects 100 million of its cards to be contactless by the end of this year. The network’s real-time debit service Visa Direct is said to be driving usage and expanding use cases and geographies. JPMorgan Chase & Co. stated that it has already issued 20 million contactless Visa credit cards as part of a rollout that began earlier this year. The bank added that tap-and-go debit cards will be on offer later in the year. Wells Fargo and Bank of America are also expected to start issuing tap-and-pay cards in 2019. Payment ease reigns supreme The rising popularity of contactless payments is inevitable, and is certainly not a passing trend. Today’s customers demand easy payments as a matter of course. As they carry their smartphones everywhere and utilize them for multiple purposes, it only makes sense that they will aspire to use them to complete transactions with super fast checkouts and a single tap. So contactless will definitely play a major role in payments in the years to come.     

The post The Inevitable Rise of Contactless Payments first appeared on Bm2Pay.]]> Investopedia defines contactless payments as a secure method for consumers to purchase products or services via debit, credit or smartcards (also known as chip cards), by using RFID technology or near-field communication (NFC). When making a contactless payment, the user taps their card near a point-of-sale terminal. This type of transaction is frictionless and fast, as no PIN or signature is required.

How does contactless payment work?

Contactless credit and debit cards use a combination of traditional EMV chips, along with a contactless chip and RFID antenna. In the case of digital wallets, the smartphone contains a pair of chips, one that accesses and encrypts the card information, and the other, a near-field communication chip that transmits the card data to complete the transaction. The digital wallet is installed on a mobile device, enabling users to manage funds and pay with their credit card accounts.

Tap-and-pay worldwide

Europe is the global leader in the use of contactless cards with nearly one in two transactions contactless. In the UK, the number of contactless transactions rose by 31% in 2018 when compared to the previous year. According to the UK Trade Association, eight out of ten debit cards and six out of ten credit cards are contactless today. The use of contactless cards has received a major boost in the UK since 2015, when the London Transport System began accepting contactless payments.

In Canada and CEMEA (Central Europe, Middle East and Africa), nearly 60% of face-to-face transactions are concluded with a tap. In Asia Pacific, contactless payments constitute more than one-third of face-to-face transactions.

Contactless payments in the US

Up until recently, the US has lagged behind Europe when it comes to contactless payments. However, at the end of May, New York became the first US city to enable subway and bus riders to start tapping a contactless bank card or their mobile wallet to pay fares. The adoption of tap-and-pay technology in cities like Boston, Chicago and San Diego should give contactless payment further impetus.

Issuers jump on the bandwagon

Visa has announced that it expects 100 million of its cards to be contactless by the end of this year. The network’s real-time debit service Visa Direct is said to be driving usage and expanding use cases and geographies.

JPMorgan Chase & Co. stated that it has already issued 20 million contactless Visa credit cards as part of a rollout that began earlier this year. The bank added that tap-and-go debit cards will be on offer later in the year. Wells Fargo and Bank of America are also expected to start issuing tap-and-pay cards in 2019.

Payment ease reigns supreme

The rising popularity of contactless payments is inevitable, and is certainly not a passing trend. Today’s customers demand easy payments as a matter of course. As they carry their smartphones everywhere and utilize them for multiple purposes, it only makes sense that they will aspire to use them to complete transactions with super fast checkouts and a single tap. So contactless will definitely play a major role in payments in the years to come.     

The post The Inevitable Rise of Contactless Payments first appeared on Bm2Pay.]]> https://www.bm2pay.com/2019/08/12/the-inevitable-rise-of-contactless-payments/feed/ 0 A Guide To Global Holidays And Gift-giving https://www.bm2pay.com/2019/05/28/a-guide-to-global-holidays-and-gift-giving/ https://www.bm2pay.com/2019/05/28/a-guide-to-global-holidays-and-gift-giving/#respond Tue, 28 May 2019 05:00:13 +0000 https://www.bm2pay.com/?p=3247 Holidays seasons all over the world are prime times for gift giving and present the perfect opportunity to boost revenues and develop brand loyalty. Our  new e-book  provides a guide to holidays worldwide, the gift recipients, and the most popular types of presents given on each occasion. Read A Guide to Global Holidays and Gift-giving to gain a better understanding of your cutomers’ cultures and buying preferences worldwide. Learn how to boost sales at high seasons and generate brand loyalty and return shoppers.   Read A Guide to Global Holidays and Gift-giving

The post A Guide To Global Holidays And Gift-giving first appeared on Bm2Pay.]]> Holidays seasons all over the world are prime times for gift giving and present the perfect opportunity to boost revenues and develop brand loyalty.

Our  new e-book  provides a guide to holidays worldwide, the gift recipients, and the most popular types of presents given on each occasion.

Read A Guide to Global Holidays and Gift-giving to gain a better understanding of your cutomers’ cultures and buying preferences worldwide. Learn how to boost sales at high seasons and generate brand loyalty and return shoppers.

 

Read A Guide to Global Holidays and Gift-giving

The post A Guide To Global Holidays And Gift-giving first appeared on Bm2Pay.]]> https://www.bm2pay.com/2019/05/28/a-guide-to-global-holidays-and-gift-giving/feed/ 0 Key Tips on How to Target Your Audiences https://www.bm2pay.com/2019/05/22/key-tips-on-how-to-target-your-audiences/ https://www.bm2pay.com/2019/05/22/key-tips-on-how-to-target-your-audiences/#respond Wed, 22 May 2019 05:14:48 +0000 https://www.bm2pay.com/?p=3211 In a highly competitive e-commerce market, you need to accurately define your target audiences and understand where and how to engage them. Our new e-book provides a comprehensive guide to e-commerce by generations. How and where should you address each segment? What are your customers’ shopping habits, which are their preferences, and what channels should you use to engage them? Key Tips on How to Target Your Audiences provides you with useful tips on how to best interact with your audiences to generate long-term loyalty and return customers.   Read Key Tips on How to Target Your Audiences.

The post Key Tips on How to Target Your Audiences first appeared on Bm2Pay.]]> In a highly competitive e-commerce market, you need to accurately define your target audiences and understand where and how to engage them.

Our new e-book provides a comprehensive guide to e-commerce by generations. How and where should you address each segment? What are your customers’ shopping habits, which are their preferences, and what channels should you use to engage them?

Key Tips on How to Target Your Audiences provides you with useful tips on how to best interact with your audiences to generate long-term loyalty and return customers.

 

Read Key Tips on How to Target Your Audiences.

The post Key Tips on How to Target Your Audiences first appeared on Bm2Pay.]]> https://www.bm2pay.com/2019/05/22/key-tips-on-how-to-target-your-audiences/feed/ 0 The Unique Appeal of Asian E-commerce Markets https://www.bm2pay.com/2019/04/23/the-unique-appeal-of-asian-e-commerce-markets/ https://www.bm2pay.com/2019/04/23/the-unique-appeal-of-asian-e-commerce-markets/#respond Tue, 23 Apr 2019 05:00:53 +0000 https://www.bm2pay.com/?p=2639 The Asian e-commerce market is booming, and it is projected to grow to $1.6t by 2021. China’s online sales are expected to increase annually by 16.1% to $1.122t in 2021.South Korea’s e-commerce sales are predicted to rise by 11.9% annually to $50.7b in 2021. India is also an important market to watch out for as it is projected to leap from $35.62m in e-commerce sales to $82.7b in 2021, enabling it to claim the third place in Asia in terms of market share. All this data sounds very enticing, and the opportunities appear to be endless. However, before entering these promising markets, make sure to study each of them carefully. Despite their geographic proximity, local purchasing habits and payment mentalities vary widely in Asian countries: South Korea There are 30.5 million e-commerce users in South Korea, and an additional 1.33 million users are predicted to shop online by 2021. Four years down the road, these e-commerce users are expected to spend an average of $1023 on online purchases. Today, over a third of South Koreans spend more than half of their monthly income on online shopping. Due to the popularity of mobile phones and social media, online retailers would do well to reach out to potential customers there. South Korean payment preferences Electronic payments are very popular in South Korea. Social media payment methods are widespread, with 34% of shoppers using them for mobile online shopping. Bank payment apps are also a preferred payment method among 29% of the population. South Koreans favor alternative payment methods, wire transfers and electronic fund transfers. Native Samsung Pay is popular as well. South Koreans of all ages use the Internet constantly. According to eshopworld, 96% of 16-24 year-olds, 100% of 25-34 year-olds, and 98% of 35-44 year-olds log on daily. Favorite online purchasing categories include fashion, toys, hobbies, DIY, online travel and home appliances. China China scored third in Fitch Solutions’ Global E-commerce Index. Its e-commerce sales are projected to grow annually by 16.1% to $1.122t in 2021. The e-commerce market is led by the Alibaba Group and its online commerce subsidiaries: Taobao, Alibaba, Tmail, Fliggy Corporate, 11 Main and AliExpress. In 2017, e-commerce represented $672 billion in terms of sales and 15.9% of the country’s share of total retail sales. Internet penetration in China currently stands at 53%, and it is expected to expand to 68% by 2021. Smartphone penetration is 44% and it is projected to grow to 53% by 2021. Today there are 589 million e-commerce users in China. By 2021, an additional 254 million users will join these online shoppers. E-commerce users are expected to constitute 74% of the total population. The average user currently spends $799 online, and this sum is expected to rise to $995 by 2021. Interestingly, South Korea is the leading exporter to China with $131 billion in merchandise. Next come the US ($128 billion), Japan ($116 billion), Germany ($78.6 billion) and other Asian countries ($73.4 billion). Chinese payment preferences As opposed to India, for example, the Chinese are not very worried by data privacy issues when paying online. They are used to the government’s involvement in their personal lives. China leads the world when it comes to the use of alternative payments. E-wallets like Alipay or WeChat Pay account for 62% of the market share in China. Union Pay covers nearly 24% of the market. Lagging behind are credit cards (10%), bank transfers (8%), and cash on delivery (8%). Bank transfers are expected to replace credit cards as China’s second most popular payment method by 2021. Debit cards are predicted to rise from 4.5% to 7.1%. India India is the fastest growing market in the e-commerce sector. Revenue from online sales is expected to reach $120 billion by 2020, constituting a staggering annual growth rate of 51%. E-commerce growth is being spurred by a combination of rising smartphone penetration and the launch of 4G networks. Some 40% of the population used the Internet last year, with an estimated 48% shopping online. In practical terms, this means there are 224 million online shoppers in India. By expanding into new sectors, e-commerce market leaders Flipkart, Amazon and Paytm Mall have given online sales a major boost. When buying domestically and even cross-border, online shoppers in India generally buy inexpensive items such as clothing and shoes, mobile phones and toys. 66% of online shoppers only purchase items domestically, while 27% shop online both domestically and cross-border. Indian payment preferences Indian purchasers have privacy concerns and they lack trust in online payment security. Nor do they trust consumer reviews or product ratings. Outlying rural areas suffer from poor logistics and delivery, and large parts of the population in those regions are unbanked. A significant section of the population (45%) prefers cash on delivery as a preferred method of payment. Debit cards claim some 17% of the market, followed by credit cards (12%) and online banking (9%). Mobile wallets are becoming increasingly popular and are expected to claim 15% of the market by 2020.   Photo courtesy of lifeforstock

The post The Unique Appeal of Asian E-commerce Markets first appeared on Bm2Pay.]]> South Korea There are 30.5 million e-commerce users in South Korea, and an additional 1.33 million users are predicted to shop online by 2021. Four years down the road, these e-commerce users are expected to spend an average of $1023 on online purchases. Today, over a third of South Koreans spend more than half of their monthly income on online shopping. Due to the popularity of mobile phones and social media, online retailers would do well to reach out to potential customers there.
South Korean payment preferences
Electronic payments are very popular in South Korea. Social media payment methods are widespread, with 34% of shoppers using them for mobile online shopping. Bank payment apps are also a preferred payment method among 29% of the population. South Koreans favor alternative payment methods, wire transfers and electronic fund transfers. Native Samsung Pay is popular as well. South Koreans of all ages use the Internet constantly. According to eshopworld, 96% of 16-24 year-olds, 100% of 25-34 year-olds, and 98% of 35-44 year-olds log on daily. Favorite online purchasing categories include fashion, toys, hobbies, DIY, online travel and home appliances.

China

China scored third in Fitch Solutions’ Global E-commerce Index. Its e-commerce sales are projected to grow annually by 16.1% to $1.122t in 2021. The e-commerce market is led by the Alibaba Group and its online commerce subsidiaries: Taobao, Alibaba, Tmail, Fliggy Corporate, 11 Main and AliExpress. In 2017, e-commerce represented $672 billion in terms of sales and 15.9% of the country’s share of total retail sales. Internet penetration in China currently stands at 53%, and it is expected to expand to 68% by 2021. Smartphone penetration is 44% and it is projected to grow to 53% by 2021. Today there are 589 million e-commerce users in China. By 2021, an additional 254 million users will join these online shoppers. E-commerce users are expected to constitute 74% of the total population. The average user currently spends $799 online, and this sum is expected to rise to $995 by 2021. Interestingly, South Korea is the leading exporter to China with $131 billion in merchandise. Next come the US ($128 billion), Japan ($116 billion), Germany ($78.6 billion) and other Asian countries ($73.4 billion).
Chinese payment preferences
As opposed to India, for example, the Chinese are not very worried by data privacy issues when paying online. They are used to the government’s involvement in their personal lives. China leads the world when it comes to the use of alternative payments. E-wallets like Alipay or WeChat Pay account for 62% of the market share in China. Union Pay covers nearly 24% of the market. Lagging behind are credit cards (10%), bank transfers (8%), and cash on delivery (8%). Bank transfers are expected to replace credit cards as China’s second most popular payment method by 2021. Debit cards are predicted to rise from 4.5% to 7.1%.

India

India is the fastest growing market in the e-commerce sector. Revenue from online sales is expected to reach $120 billion by 2020, constituting a staggering annual growth rate of 51%. E-commerce growth is being spurred by a combination of rising smartphone penetration and the launch of 4G networks. Some 40% of the population used the Internet last year, with an estimated 48% shopping online. In practical terms, this means there are 224 million online shoppers in India. By expanding into new sectors, e-commerce market leaders Flipkart, Amazon and Paytm Mall have given online sales a major boost. When buying domestically and even cross-border, online shoppers in India generally buy inexpensive items such as clothing and shoes, mobile phones and toys. 66% of online shoppers only purchase items domestically, while 27% shop online both domestically and cross-border.
Indian payment preferences
Indian purchasers have privacy concerns and they lack trust in online payment security. Nor do they trust consumer reviews or product ratings. Outlying rural areas suffer from poor logistics and delivery, and large parts of the population in those regions are unbanked. A significant section of the population (45%) prefers cash on delivery as a preferred method of payment. Debit cards claim some 17% of the market, followed by credit cards (12%) and online banking (9%). Mobile wallets are becoming increasingly popular and are expected to claim 15% of the market by 2020.  
Photo courtesy of lifeforstock
The post The Unique Appeal of Asian E-commerce Markets first appeared on Bm2Pay.]]> https://www.bm2pay.com/2019/04/23/the-unique-appeal-of-asian-e-commerce-markets/feed/ 0