In September, EBANX released the Beyond Borders Research 2018-2019 – The Cross-border Consumption in Brazil, with unprecedented data and thoughts about the Brazilian consumer behavior on international e-commerces. The study, conducted with over 3 thousand e-shoppers, has shed light on the potential of e-commerce in Brazil, which should grow, on average, 17% within 3 years, according to Americas Market Intelligence.
To contribute to this analysis, EBANX has invited big names in the payments, retail, and digital goods markets to forecast the future of e-commerce. Experts from Visa, Mastercard, Elo, eBay, Adobe, Salesforce, and other companies shared what they consider the most innovative and promising about cross-border commerce, consumer behavior, security, and technology.
In this article, LABS brought together three major trends pointed out by these players. Check it out:
Safe and seamless payments
Ensuring seamless payments, reducing friction on the shopping journey without compromising security. This is the goal of the e-commerce payment industry in the coming years, according to Mastercard, Visa and Elo. To achieve this, the bet is to reconcile the adoption of tokenization and the 3DS 2.0 authentication protocol.
For Digital Payments & Labs VP Latin America at Mastercard, Guilherme Esquivel, tokenization conveys a sense of security by preventing the payment credential – consisting of card number, expiration date, and security code – from openly navigating through sites.
“Currently, you probably have your card registered at more than 30 places. How do you manage it? The token allows this active management of the card’s lifecycle, meaning that since it’s a credential, a representation of your card – but not its actual number – you can even manage it over those credentials”, says.
The VP of Solutions and Innovation at Visa Brazil, Percival Jatobá, has a similar insight into the advantages of tokenization. “If your system is not prepared to embrace tokenization, you are unlikely to have a disruptive, future-proof digital framework. Tokenization today dictates the rhythm and acceleration that you want to inject into your ranking performance,” he points out.
What’s more, the adoption of the 3DS 2.0 protocol would not only fulfill the role of ensuring secure transactions, but also a fluid checkout with minimal interference. Through it, merchant and issuer share and check dozens of contextual consumer data to confirm the reputation of the transaction. An additional verification step, such as requesting a password and additional data, is only required when a high risk is identified, greatly reducing friction on the shopping journey.
“The 3DS 2.0 protocol ensures that you are really yourself at the time of purchase. We are talking about over 60 different parameters that define your digital identity. Authentication can be done through biometrics, facial identity, (…) or by simply sending a code to your mobile phone,” Esquivel explains.
Bottom line? An impressive rise in e-commerce conversion rates. “With the 3DS 2.0 pilot projects underway, we are seeing the authorization rates in these transactions rising to levels close to what we have in the physical world: 80%, 88%, 90%,” he adds.
The security ensured by 3DS 2.0 is not limited to consumers. Under the protocol, merchants get rid of a major headache. “If I, the issuer, identify that a transaction is parameterized or it has low-risk behavior, I approve this transaction, and guarantee to the trade the status of an authenticated transaction. By doing so, I eliminate one of the biggest nightmares called chargeback,” Jatobá explains.
For Eduardo Chedid, CEO at Elo, a Brazilian acquirer, in addition to ensuring a secure transaction, the massive adoption of the 3DS 2.0 protocol will enable a rise in debit card purchases. “Once you introduce the debit card with 3DS 2.0, you will have an amount that is not available through e-commerce currently and it will, then, be eligible. It’s ‘new money’ for everyone. (…) If the same credit card behavior happens with debit card, I could expect 20% more transactions in a few years from now,” adds.
AI and data for a unique consumer experience
More than ever, consumer experience is at the heart of corporate strategy, and this is no different in e-commerce. Offering a compelling and personalized shopping journey as well as exceeding customer expectations has been pointed out by eBay, Adobe and Salesforce experts as the biggest challenges for players in the coming years.
For Andrea Stairs, General Manager at eBay Canada & Latin America, the key to retail is to ensure a virtually exclusive journey for the consumer. In other words, the more they are understood and assisted to find what they want, the better. “By combining AI and structured data, eBay is enhancing the shopping experience for customers – we call it personalization at scale,” she points out.
Data intelligence is key when we talk about ecommerce at mass scaleAndrea Stairs, General Manager at eBay Canada & Latin America
Stairs mentions, as an example of personalization at scale, eBay’s tool for searching for products through images. Consumers simply have to take a photo or upload an existing image to access similar product listings available on eBay. “This tool is enabled by artificial intelligence and machine learning and allows shoppers to quickly find the things they love, making the entire internet shoppable on a mobile device. The new experiences we’ve built are about inspiration and discovery, value and selection, simplicity and ease,” explains.
In this challenge of delivering a unique experience, data is an important ally. “We strongly rely on big data. We’re seeing the ability of machines to interpret data getting better and better. And as it gets better, so too does our ability to create an extraordinary shopping experience,” he says.
Immersed in a scenario of several innovations, the consumer gets disappointed when treated as a number, impersonally. He won’t relate and trust the brand. For Daniel Hoe, Director of Marketing for Latin America at Salesforce, corporate priorities have changed with the emergence of this more connected and demanding audience.
“For a long time we have seen an exclusive focus on orienting the business only to shareholders or financial results. Putting the customer at the center is the best way to – ultimately – maximize the value of the company to all stakeholders, not just the shareholders or investors of a company. Therefore, the first factor is undoubtedly the protagonist of the connected customer of the Fourth Industrial Revolution”, suggests. “To enhance the customer experience, digitizing business processes and utilizing digital goods and services, such as those offered by SaaS business models, are a priority for organizations,” Hoe adds.
89% of Brazilians believe that the experience with a brand is as important or more important than the product or service itselfDirector of Marketing for Latin America at Salesforce, Daniel Hoe
General Manager for Latin America at Adobe, Federico Grosso, identifies the efforts of large companies to ensure competitiveness in a market increasingly concerned with serving consumers in real time on their journey. “We are dealing with a new, empowered, connected consumer who wants to be served with the same quality anywhere, anytime. They want ever more immersive and personalized experiences, with brands to support them in every possible way,” he says.
With much of the population connected, the challenge for brands is to stay relevant and close to their consumers. Regardless of the sector, the experience is essentialGeneral Manager for Latin America at Adobe, Federico Grosso
For Grosso, the demand for support and a more satisfying experience is the result, among other things, of a technological lifestyle. “With mobile application and service inputs that make consumer life more practical and immediate, the biggest challenge today is always being ahead of expectations and present with the customer to meet them. To this end, Adobe partners with brands to better understand their consumers, impact them on the right timing, and relevant content at any stage of the shopping journey,” he adds.
All eyes on the smartphones
The Beyond Borders survey revealed that, unlike countries like Argentina, Chile and Uruguay, which have mature levels of mobile penetration, Brazil still has a lot to grow when it comes to connectivity. The fact is that mobile growth is reshaping the Brazilian e-commerce ecosystem and, therefore, the strategies of those who want to invest in it.
For Andrea Stairs, General Manager at eBay Canada & Latin America, having a mobile strategy is almost a condition for thriving in the Latin American market. “Brazilian consumers are avid users of smartphones and mobile ecommerce. Interestingly, Latin America is a world leader when it comes to social shopping, giving more reasons for retailers looking to reach Brazilian consumers to ensure they have a mobile plan,” she suggests.
In 2018, 39% of e-commerce purchases in Brazil were made through mobile, a rate that should rise to 51% in 2021. In this scenario, companies that develop strategies to take advantage of the growth of mobile technologies in Brazil will be more likely to compete in a rising market. “ “There’s an explosion of digital shopping in markets like Latin America, and Brazil specifically,” concludes.
eBay thinks “mobile first” as we design new products and experiencesAndrea Stairs, General Manager at eBay Canada & Latin America