EXPERT SPEAK via social media , which is becoming an increasingly effective sales channel for brands , with social commerce now an important area of growth .
Several other factors , which are pertinent to emerging markets such as Africa , include improved access to the Internet and financial services for the unbanked and underbanked ; and increasing mobile penetration and the development of mobile payment technology . Additionally , the development and increased availability of alternative payments and improvements in delivery times , supported by developments in logistics infrastructure , are also driving e-commerce in emerging markets .
Recent developments
We have witnessed several recent developments that are galvanising e-commerce payments for physical and digital goods in Africa . For example , in November last year , digital payment gateways MFS Africa and Chipper Cash announced that they had raised US $ 100 million and US $ 150 million , respectively , to scale up their cross-border e-commerce payment services in Africa , joining a growing number of companies targeting this emerging market .
Recently , African money transfer service M-Pesa teamed up with Visa to offer a virtual payment card service that will tap into the subscription market , worth US $ 40 billion a year . Called the M-Pesa Global Pay Visa Virtual Card , it will enable users to pay merchants from their mobile phones , with no need for credit cards or accounts payment providers . The idea is to harness the unbanked , which has been a focus area for many companies looking to expand financial accessibility . Indeed , it seems that big opportunities lie in connecting the African continent and supporting within-region and cross-border e-commerce .
The future of e-commerce payments is closely tied to the evolving needs of e-commerce brands and merchants that are increasingly looking at the customer experience as the primary driver to attract consumers .
Evolving needs of brands
At the same time , the future of e-commerce payments is closely tied to the evolving needs of e-commerce brands and merchants that are increasingly looking at the customer experience as the primary driver to attract consumers . Customers are increasingly seeking the most frictionless experience possible , and if the customer ’ s preferred payment method is not available , it increases the risk of cart abandonment .
The omnichannel experience is also being extended further through new developments , such as social commerce . E-commerce has the potential to increase the availability of ( physical ) products in real time , linking brands to their consumers with fewer intermediaries and this presents additional opportunity for innovations in terms of e-commerce payments integration across social media , as well as the potential for omnichannel social
media customer support .
According to Juniper Research , the value of global e-commerce payment transactions will exceed US $ 7.5 trillion by 2026 , from US $ 4.9 trillion in 2021 . This growth rate over the next five years will be driven by retailers offering compelling omnichannel retail experiences that increase user e-commerce spend .
End user demands will continue to change , meaning that brands that care enough to listen to their shoppers ’ expectations and are able to leverage the CX consulting expertise of global messaging providers ( who already have a track record of delivering impactful projects ) to build a solid omnichannel communications strategy and take the stress out of the entire shopping experience will be able to better retain their customers . •
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