Why Payment Companies Are The Key Players In The Great E-Commerce War

Why Payment Companies Are The Key Players In The Great E-Commerce War

You might not have noticed, but there is a war going on in the world of e-commerce. With e-commerce penetration accelerating wildly this year, this fight for industry domination is quickly heating up. You might imagine that such a war is fought by e-commerce platforms and service providers - but the main battle is currently between payment companies. Surprisingly, they are not competing to offer the fastest or most hassle-free payment services, but for consumer attention.



But why would payment companies be at the center of this?



These companies are sitting on massive treasure troves of data and with that comes a lot of potential value. For example, the data they have collected about consumers' spending preferences and habits can be very valuable in itself. But that data can also be used for demand forecasting that can give them a competitive advantage in the eyes of their customers, the merchants.



So it is no surprise that many of the major payment companies are experimenting with and betting on commerce functionality lately. Klarna, for example, launched an app where consumers can not only see their purchases and payment history, but also use the built-in browser to purchase any given product with