Pandemic has changed everything - this phrase is as simplistic as it is true on many levels. Especially when we talk about the eCommerce industry. Moving away from generalities - in today's article, we will focus on one of the most important aspects of eCommerce - we will present the changes that occurred in 2020 and 2021 in online payments.
Some trends, such as shortening the payment path, were visible before 2020 - however, the time of crisis strongly accelerated their development, and also allowed the emergence of completely new solutions.
Favorite online payments - the primacy of BLIK
Izba Gospodarki Elektronicznej in November 2020 conducted a market survey using the CAWI method, the results of which show trends, changes and novelties in online payments. "Płatności cyfrowe" report is prepared every year. However, the current edition is special - never before in the history of this survey in the answers of the respondents so many new payment systems appeared. Not only are customers increasingly buying online, but they are also more interested than ever in new technological solutions. What else do we learn from the report?
The top three financial and transactional products that Poles own remain unchanged - a payment card (47%), a bank account with active online access (40%) and a bank account without active online access (25%). Then it gets more interesting - the list is completed by more modern tools and it is among them that the biggest shifts and percentage changes take place. Mobile payments are becoming more and more popular (23%). Nowadays e-shops maximally reduce the number of steps that separate customers from completing the transaction. The one-click payment service is becoming more and more popular, which is exemplified by the increase in the use of the BLIK payment system.
Digital wallets such as Apple Pay, Google Pay (11%) and payments using these methods with watches and sports bands in stationary stores are also becoming increasingly popular. Customer interest in contactless payments via smartphones and smartwatches is worth considering when planning your business operations - especially when implementing the omnichannel business concept.
Compared to last year - 3% more people declare to use online payment via computer/laptop. Pay-By-Link comes first (35%), followed by BLIK (26%) and traditional transfer (22%). The biggest growth is seen in BLIK payments. This payment method is one of the most popular. The survey of payment operator Tpay and SW Research conducted in late November and early December on a group of 854 Internet users shows that they are most willing to pay with BLIK (71%). Interesting data are also presented by BLIK itself. Comparing the number of transactions from the last quarter of 2019 to the first quarter of 2020, we see an increase from 52.8 million to 57.5 million!
Mobile first? Payments with smartphones and tablets in pandemic time
The report of the Chamber of Electronic Economy shows that mobile online payments are the most popular. In this case Przelewy24 and BLIK are leading (both 27%), followed by traditional payments, which are used by 25% of respondents. BLIK is on the podium regardless of the devices used by Poles. This fact is taken into account by more and more eCommerce platforms, allowing you to enter the BLIK code from the level of selection of payment methods. And this significantly speeds up the transaction itself. There is also a great interest in mobile applications that allow payments in urban areas. 16% of respondents declare that they use solutions such as SkyCash, mPay, moBILET, Twisto, Revolut or N26.
And how many people use mobile payments online? 40% of those surveyed said they buy online using their smartphone or tablet - compared to last year, this figure is 15% lower. How did this change happen? Most likely due to the pandemic time, which we mostly spent at home using desktop tools.
The growing popularity of BLIK and other mobile online payment methods, and above all the loosening of sanitary restrictions will rather make the use of mobile devices in the buying process gain again. That being said, it is already a good idea to tailor your eCommerce for mobile users and drive more traffic to your site by implementing a Progressive Web App.
Open to new
Among payment methods that until recently were seen in the category of novelty, wearable devices - especially smartwatches - are experiencing strong growth. In 2018, 10% of respondents in a survey by Izba Gospodarki Elektronicznej declared that they use contactless watch payments. In 2020, we see a very clear increase in this payment method - 27% of respondents use smartwatches when shopping in stationary stores. Watches with Apple Pay, Google Pay, Garmin Pay or Fitbit Pay - these are the devices that are slowly conquering the market, offering users above all comfort and speed of transactions.
Polish consumers are also gradually opening up to cryptocurrency payments. 12% of respondents declare that they used this method in 2020 and 12% are considering paying with virtual currencies also in 2021. Interestingly - using Bitcoin Poles most often bought... books and CDs (16%). Next is the category of online gambling (15%), and in third place are tickets to the cinema, concert and theater (14%).
Among the innovations on the Polish online payment market are mobile applications dedicated to such chains as Orlen, Carrefour, Circle K, Żabka and Lidl. Orlen Pay was used by 16% of the surveyed Internet users in 2020, as was the Żappka Pay application. In turn, the Tank&Go service in the My Carrefour app is used by 19%. The same result was achieved by the Lidl Pay app. An interesting example of the impact of the pandemic on business decisions to introduce new payment technologies is shown by Circle K. The gas station chain planned to introduce its app in the first quarter of 2021, but due to the safety of customers and employees - it decided to take this step as early as November 2020.
Last year was also a milestone in terms of completely new technologies. A startup from Wroclaw was the first in the world to launch a payment system based on iris biometrics. 14% of respondents in the IGE survey declared their willingness to use PayEye.
As we can read in the report - it is also worth looking at such solutions as... cashless payments in places of religious worship. Although donation and offering machines are still quite controversial topic (only 19% positively evaluate this technology), their emergence also shows the development of online payments.
Online payments - a step towards the customer
Finally, it is worth mentioning not so much the online payment methods themselves, but the solutions that meet new consumer expectations.
PayPo and Pay Smartney services, which allow to postpone payments for 30 days at no additional cost to the consumer, are enjoying great popularity. Another functionality for the eCommerce market is P24NOW. It allows customers to pay in installments or defer payment for up to 54 days. However, the e-store receives the money immediately. This product is therefore a comfortable convenience for both companies and their eCommerce customers.
The 0% installment offers and the Click&Collect service are also a way out for the customers, which proved especially useful during the pandemic. Will this trend continue to flourish? We can expect some fluctuations, but these solutions should be implemented not only during the crisis.
The openness of Poles to new online payment methods is an important development for all those involved in eCommerce. On the other hand - more than half of the respondents prefer traditional payments - whether cash or transfers made at a bank branch. However, the high willingness to use electronic payments (47% of respondents) is a clear indication, as well as an opportunity and challenge. The eCommerce industry has many functionalities at its disposal - its main task is to perfect their simplicity, security and reliability. It is these criteria that have the greatest impact on persuading the unconvinced and overcoming their distrust of online payments.
