In the world of eCommerce, the struggle is also real. Payments technology company Nuvei partnered with strategy consulting firm Edgar, Dunn & Company for a research that highlights the opportunities payment orchestration brings to revenue growth of eCommerce businesses. The study found that many eCommerce businesses are struggling to optimize payments. Here’s the scoop.
Three-quarters of eCommerce businesses struggling to optimize payments
The research from Nuvei, a Canadian fintech company, has revealed that three-quarters of eCommerce businesses say they require greater levels of support to optimize their payments function because of their dependence upon an increasing number of payment providers.
More details about this research can be found in Nuvei’s latest whitepaper titled “Payment Orchestration: A Practical Guide To Optimizing Payment Performance,” which can be downloaded here.
Nuvei and Edgar, Dunn & Company conducted the research during the fourth quarter of 2022 and the early first quarter of 2023. It involved conducting primary and secondary research, including completing in-depth interviews with large multinational business-to-consumer or B2C businesses.
Another survey was also done at the beginning of 2023, conducted online to over 100 international businesses selling online to consumers, with a sample of respondents working in the payments, finance, or commercial fields. The questionnaire was a mix of pre-qualifying information, open-ended questions, and multiple choices on the businesses’ experiences and views regarding payment orchestration. All data were collected anonymously.
Capitalizing on the multi-vendor model’s benefits
In an increasingly competitive landscape, over half of online businesses are currently using at least six payment providers to optimize their checkouts as they scale into new markets, win new customers, and expand revenue. A third have direct acquiring relationships with five banks at the minimum.
The popularity of this multi-vendor model is a direct outcome of eCommerce businesses understanding there is a real opportunity to herald growth. Harnessing the capabilities of best-in-class payment innovations in each market they operate and for each relevant payment method is crucial for these businesses to optimize their payments.
However, these businesses are also aware that insufficient coordination and optimization of these complex systems may hurt their revenues, too, including losing customers permanently.
The research also shows that 59 percent of businesses believe customers who have experienced a false decline are bound not to give these businesses another chance. It also indicates that alternative payment methods are becoming more vital to eCommerce, with only 23 percent of online businesses’ checkout now having three available payment methods or even less.
Nuvei is a fintech company that provides the technology and insights for customers and partners to triumph locally and globally with just a single integration.
Edgar, Dunn & Company is an independent and worldwide strategy consulting firm that specializes in payments and fintech.
