The Evolution of Online Payments

As we approach the year 2018, online purchases and ecommerce transactions have reached a record high.
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As we approach the year 2018, online purchases and ecommerce transactions have reached a record high. And there is no decline expected anytime soon – in fact, quite the opposite. With an incredible 71% of shoppers believing they are going to get a better deal online, brands and businesses must keep up with demand if they are to continue their journey on the crest of the so-called ‘online wave.’

Magento and their offerings are typically the most popular as an ecommerce platform, but just what payment methods are people using, and how have these evolved over time? We take a look at two of the most popular, as well as one we feel should be watched out for:

PayPal

PayPal is perhaps the most widely recognised gateway in the world. Having led the market since the early 90’s, there is barely a brand or industry that doesn’t offer this as a payment method.

Many of the more traditional industries offer PayPal as a secondary payment option, with the use of credit or debit card being at the forefront. That said, the ease of operation and the amount of time saved has led to more and more of those wishing to transact online, offering it as a payment gateway – retail, travel, b2b, and gaming - even online casinos accept PayPal.

Skrill

Skrill has become increasingly popular over the past number of years. Initially set up as Moneybookers in 2001, the firm saw unprecedented growth in the transactions it managed, leading it to rebrand to Skrill in 2011 – a process which was completed in mid-2013.

According to payonlinesystems.com, Skrill is the second most popular payment system in the world. One of the reasons for it’s incredible growth can be attributed to the prepaid card that was introduced, which is offered in the following currencies:

  • USD
  • GBP
  • EURO
  • PLN

Skrill even offers Escrow payments – a significant plus point for an ever-growing payment solutions providers – and one that enhances both trust and safety.

Bitcoin

Bitcoin is perhaps the most intriguing of the three payment solutions that we have looked at. No single entity or government institution has any control or legislative powers over the virtual currency, but the facts remain – in the two-year period between March 2015 and February 2017, Bitcoin saw an absolutely staggering 1289% growth in its value.

Whilst there are many who are worried about the negative implications of this cryptocurrency (one of the reasons as to why the FBI owns 1.5% of all Bitcoin in circulation), there are tens of thousands, if not more, who have reaped the rewards of mining.

This infographic here gives some great facts and figures about its growth, but the bottom line remains – those businesses who haven’t adopted it yet, could soon be forced to due to its ever-increasing popularity. In fact, a new business in the music industry has been set up to offer its members payment for their gigs in Bitcoin, and we believe that it won’t be long before some of the world’s other leading industries follow suit.

With guaranteed user anonymity, no third-party interruptions, low transaction fees, and no sales taxes – these distinct advantages could lead to this crypto currency continuing its charge to become one of the world’s leading payment methods.

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