MONTREAL – New research from strategy consulting firm Edgar, Dunn & Company specialized in payments and digital financial services, commissioned by Nuvei Corporation (TSX: NVEI and NVEI.U), highlights the importance for marketplaces to build a future-proof payment strategy to maximize the opportunity for growth. The report “The Evolving Needs of Today’s Marketplace. Leveraging payment technology as a growth catalyst” also analyses best practices for marketplaces to optimize their payment processes and increase profitability.
A Nuvei report published in 2017 predicted that by 2020, around 40% of the world’s online retail market would be controlled by marketplaces. A recent analysis conducted by Digital Commerce 360 demonstrates that the marketplace share of total global web sales was actually 62% in 2020. Accelerated by local lockdowns during the pandemic, marketplaces experienced 81% growth in 2020, according to marketplace platform provider Mirakl’s Enterprise Marketplace Index. To capitalize on this faster than expected growth, many marketplaces now seek to create an entire ecosystem with large product choice as a means to retain and increase customer loyalty.
“Marketplaces face numerous complexities and need to constantly look at how the changing requirements of buyers, sellers and various external stakeholders impact their business model”, says Greg Toussaint, director at Edgar, Dunn & Company. “Being at the center of this intricate ecosystem, marketplaces now need to introduce new payment functionalities and solutions that cater to the needs of their local and global audiences.”
“Online sales have been accelerating due to rapidly changing consumer behavior, coupled with the increased accessibility and convenience of digital payments. This has created unique opportunities for marketplaces,” said Philip Fayer, Nuvei’s Chair and CEO. “Leveraging key payment best practices can support marketplace expansion to meet ever-increasing demand from both sellers and their customers.”
“A boom in eCommerce sales and the evolution in customer behavior, following the COVID-19 crisis, have created attractive opportunities for marketplaces”, said Yuval Ziv, Nuvei’s managing director, digital payments. “Optimizing the customer journey through frictionless payment experiences will be more important than ever in order to remain relevant in this competitive environment.”
Nuvei (TSX: NVEI and NVEI.U), is the global payment technology partner of thriving brands. Their proprietary platform connects merchants in 200 markets worldwide with local acquiring in 44 markets, supports 470 local and alternative payment methods, nearly 150 currencies and 40 cryptocurrencies.
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