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Fintech App Development: How Fintech Apps is Enabling Streamline E-Commerce Services
- Emorphis Technologies
- Dec 31, 2020
- 4 min read
When the internet began gaining momentum, eCommerce became a possibility back in 1991. With the arrival of Amazon in 1994, the future of eCommerce breathed life and, as of today, it continues to be the world leader among all eCommerce companies operating.
For many, it may be a shocking fact, but the fintech seed started to germinate back in the 1950s. Over the last six decades, through continuous evolution and invention, its roots have evolved deeper and branched out further. Fintech app development helps Fintech companies to find out what the consumer needed at each point and responded by developing tools and innovations to help it. Fintech has become what it is today through this relentless exercise.
Both eCommerce and Fintech encountered friction from their more conventional brothers, namely the brick-and-mortar stores and traditional banks, respectively. The latter saw the possibilities that could bring together the convergence of engineering, trade, and finance and stood strongly against the very idea of these concepts.
Over time, by establishing a symbiotic relationship, the four of them began to co-exist in the market. In order to improve both the bottom line and the customer base, conventional peers have now discovered that it is easier to embrace and incorporate technology into their everyday operations. Banks are increasingly using fintech-powered tools and software to streamline their subscription and loan origination processes, among others, although brick and mortar stores have also begun to launch online stores, reaching out to more consumers than otherwise would have been feasible, considering their fixed store location.
This is not the most impactful equation that we are talking about here, however. The effect that really matters here is that in developing its ecosystem, which would otherwise have been very small, Fintech had on eCommerce.
Financial inclusion
Only when buyers and sellers work at parity will eCommerce succeed. Both demand and supply should be there. However, while many budding businessmen and sellers may want to sell their goods on the market, they seldom find the right financial assistance needed to set up a company, purchase inventory, etc.
When it comes to providing loans to start-ups and small and medium enterprises, conventional banks are not quite forthcoming. Fintech lending firms, however, have changed that. In contrast to conventional banks, they not only offer loans to small companies but also tailor the loans based on their needs and make the overall process of loan origination much smoother. This has created an opportunity for many small companies to grow faster and develop further.
The same applies to the story’s client-side. A substantial portion of the world’s unbanked population does not have access to eCommerce and its advantages without fintech. Innovative tools and payment systems were launched by Fintech businesses that helped the unbanked population make online transactions and enjoy the fruits of eCommerce. Fast mobile payments and digital wallets quickly replaced the hassles of opening and maintaining a bank account. This led to a steady rise in financial inclusion, brought together sellers and buyers, and created a strong base for the global platform for eCommerce.
Trust building
Previously, customers were not familiar with online purchases. As they could not see it changing hands, they did not understand how money could be safely transferred electronically, something they felt relaxed with.
In due course, digital payment platforms helped create trust among customers by offering simple payment interfaces for them. This has helped more individuals to accept online payment systems such as PayPal and to begin online transactions. Fintech not only aims to improve trust in online payments, but a concept that quickly became popular with customers was the convenience of being able to sit at home and make transactions.
Global marketplace
The global e-commerce platform has been transformed into a flourishing one by Fintech. Geographical borders no longer serve as barriers to transactions from various countries by customers. For a long time, logistics had stopped being an issue, but online payments across geographies continued to be a complicated problem. Payment networks and digital wallets have revolutionized payment systems, such as Amazon Pay, Google Pay, and WhatsApp Pay, enabling people to buy products and services from around the world, from the comfort of their homes. These platforms have enabled services such as refunds and advance payments, thus improving both customer’s and suppliers’ trust.
More platforms better deals
Consumers can benefit from this rigid rivalry as more fintech players enter the market and compete with foreign and domestic players. By partnering with famous brands, numerous businesses venturing into the business of payment channels give customers enticing offers and discounts. Digital payment companies are actively seeking to gain market share by making customers levitate towards them through these deals, right from providing cashback to flat discounts on transactions and free movie tickets. This, in turn, has increased the amount customers spend online, further boosting online purchases, thereby boosting e-commerce.
Better payment options
Fintech lending firms are also offering zero percent interest right at checkout on online loans to help customers purchase big-ticket products at once. This has helped customers make purchases for a long time that they would not have prepared and saved. Fintech lending firms have not only improved eCommerce by allowing consumers the right to make transactions without thinking about the cost and ways to finance their purchases but have also brought financial discipline into customers’ lives in their own way.
Data collection and analytics
Finally, one of Fintech’s greatest impacts on eCommerce is its ability to gather knowledge across different applications and services from various customers. Via analytics and AI algorithms, they then run this data to classify customer buying habits by guiding targeted advertising to them based on their previous buying patterns. Again, this has boosted sales as buyers are more likely to purchase something they have already seen online and have expressed interest in adding an item to a ‘Wishlist’ by, say. These data-rich reports and analytics are now marketed by Fintech companies to third parties who can profit from these customer insights and deliver better and more tailored goods and services.
Fintech firms have contributed quite a lot of value to the eCommerce situation, as we can see. If the market continues to grow and innovate soon, it will definitely affect the eCommerce industry on a far larger scale.
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