The challenges of the year have tested most industries, among them the retail industry. The move to contactless solutions and an era of stay-at-home habits have highlighted the importance of a digital presence with ecommerce emerging as the key avenue for retailers. In fact, Digital Commerce 360 reported “more than $1 in every $5 was spent online in Q2 2020 — the highest ecommerce penetration of any quarter or year on record” and this growth trend is likely to stick around.

The pandemic has accelerated the widespread adoption of new ecommerce technologies and opportunities. Two major trends that have grown throughout the year will likely continue to shape the future of the shopping experience, even post-pandemic.

Maturing the Omnichannel Presence

Prior to the pandemic, grocery shopping was largely an in-store shopping experience; however, these stores represent a microcosm of the shift to online channels by retailers. The Consumer Technology Association (CTA)® COVID-19 Impact on Technology Innovation: U.S. & Europe study shows that “despite supermarkets largely remaining open as essential businesses during the pandemic, grocery chains are reporting massive swings in sales revenue from in-person to digital point of sale as shoppers flock to grocery delivery apps and services.”

Customers see several advantages of online shopping compared to in-store shopping. For example, larger product selection, more products to discover, better prices and more flexible payment methods are just four of the advantages attributed to online shopping.

In a conversation for CTA’s COVID-19 Impact: Retail Innovations research, an executive from the The Revenue Optimization Companies (T-ROC) echoed this sentiment. “[The pandemic] is an opportunity for retailers to pivot to really address the customer’s needs. For retailers that do not have an omnichannel presence, there is no better time to create a plan. For retailers that do, they can think of ways to enhance that presence.”

In Latin America, the Chilean department store Falabella has accelerated the evolution of their omnichannel presence amid the pandemic as they leverage their previous acquisition of the online marketplace Linio to focus on ecommerce solutions. Falabella joins other Latin American retailers like Lojas Americanas and Via Varejo in a pivot from solely physical operations to a greater online presence, warranting their inclusion in the Nasdaq CTA Emerging Markets Internet & Ecommerce Index (QNETEM) that launched this month.

Payments Flexing for ECommerce

The coronavirus pandemic has crystalized the need for agility and innovation to keep consumers successfully engaged with ecommerce platforms. Answering the call of shifting consumer shopping behaviors are fintech solutions that streamline the purchasing process and offer flexible payments for ecommerce.

the pandemic has elevated the desire for contactless payments options. CTA’s COVID-19 Impact: Retail Innovations study shows that over half (56%) of consumers plan to use contactless “tap” payments in the future. In the same study, an executive from TargetPath said, “a lot of the checkout process has gone completely contactless, meaning retailers are now leveraging things like Apple Pay and Samsung Pay.”

A Mastercard poll shows that 52% of those surveyed younger than age 35 have swapped their “top of wallet” card for one that is enabled with contactless technology. Though younger cohorts generally adopt technology at a faster pace than their older counterparts, of everyone surveyed, three in four (74%) expect to use contactless payment technologies in the future.

Unsurprisingly, Mastercard has utilized these insights to forge partnerships globally to leverage the relationship between fintech payment solutions and ecommerce. As such, they have formed a partnership with the aforementioned Falabella, but also increased their “Digital First” presence in Singapore and Hong Kong via agreements with fintech upstart GrabPay and neobank WeLab Bank, respectively.

Alongside the surge in online shopping resulting from the pandemic, installment payment methods such as Afterpay and Affirm have also gained increasing popularity as consumers seek greater flexibility amid economic uncertainty. At the core of their solution, these companies allow customers to defer payments for products and instead pay in fixed amounts at regular intervals. While these solutions are already a mainstay in Latin America where they are developed natively within ecommerce platforms like MercadoLibre, the U.S. has seen significant growth in the comfort of American consumers with new digital money behaviors. Subsequently, ecommerce companies are embracing the changes and facilitating “buy now, pay later” opportunities that were previously only seen in-store and even then, only available at a few retailers.

Retail Reimagined

Looking forward, the adoption of innovative technologies to answer the demand of increased ecommerce activity will result in revenue growth and prolonged consumer engagement. Given the massive increases in ecommerce that have largely remained constant throughout the pandemic, it is likely this mode of shopping will stick around on a much greater scale than before.

Ultimately, experts and consumers alike expect the shift toward online shopping to be long-lasting and this growth in ecommerce will undoubtedly inspire new and creative technological innovations.