Changing Merchant Payment Needs and the Impact on Banks

The e-commerce industry continues to evolve and experience high growth in both developed and developing markets. With the emergence of non-banking players in the payments industry, the e-commerce market is also growing at a rapid pace driven by the increase in the number of smartphones, broadband connections, and innovative payment products. Merchants’ payment needs are also changing with the evolving market dynamics. As merchants focus on enhancing the user experience and providing secure ways of transacting online, they are partnering with both banks and non-banks to create consumer-oriented, innovative payment solutions. Key challenges for retailers are to integrate the online and offline channels, expand payment options, and personalize the online shopping experience for users.

This paper reviews the global e-commerce market, looks at how e-commerce growth is changing merchant payment needs, and explores the impact of changing merchant payment needs on banks