• Madara Antanaviča, Payment Expert at Exactly.com


• 06.03.2025 04:30 pm
#EconomicChallenges #DigitalFinance

From crisis to conversion: how fintech drives e-commerce success

High inflation, a cost-of-living crisis and belt-tightening after Christmas: that’s the present-day economic reality that consumers and business owners face. 

Around one-third of global consumers feel worse off financially than a year ago, as unemployment rates remain steady and wages lag behind inflation. For businesses and retailers, that means more competition for a smaller share of consumer spending.

Financial technology, or fintech for short, has long been promoted to make financial services more efficient. But what’s the role of fintech when times are tough? How does it help deliver on e-commerce business goals? And how do such businesses choose a fintech partner?

Consumers under pressure

Consumers all around the world remain cautious about spending. Topping their list of concerns are rising food prices (33%), increasing utility costs (20%) and the threat of an economic downturn (19%), according to NielsenIQ. 

So much so consumer cutbacks are likely to continue, mostly on non-essentials like eating out (38%), out-of-home entertainment (37%) and takeaways (36%). Choices around in-home entertainment (48%) and socialising (46%) will likely stay at an intentional level throughout 2025.

It’s a similar story in the UK. Only 8% of UK consumers plan to increase their spending, while 72% are waiting for a special shopping event to make a purchase, research from Vypr reveals. A similar proportion of UK consumers (73%) are worried about the high cost of living. 

How fintech adds value 

Fintech features are typically easy to integrate, often with an API and a few lines of code. So, whether a business wants to expand internationally by offering popular local payment methods and currencies, or improve customer satisfaction, loyalty or cashflow via payment options, fintechs have the answer.

For example, in the e-commerce sector, fintech providers are offering plug-and-play payment gateways and merchant accounts. Those wanting to trade online, overseas (or both) have a complete financial management and payment acceptance system out of the box. That’s all without waiting, long lead times or eye-watering expenses.

What to look for in a fintech payment provider

Payment has become a key strategic lever for driving revenue growth in the e-commerce industry. However, not all payment providers are equipped to meet the unique demands of this fast-paced and competitive sector. When e-commerce businesses engage with fintech companies, they expect a level of expertise and capability that extends beyond basic payment processing.

The architecture and infrastructure of a fintech partner are critical. Businesses need providers with robust, scalable systems that are easily adaptable to new requirements and changing consumer behaviour. Fintech companies must demonstrate the ability to rapidly build, test, and launch new products or services while maintaining seamless operations.

Ownership of payment infrastructure is another crucial factor. Fintech companies that control their technology stack can typically deliver faster, more cost-effective solutions. With full ownership, they dictate their own development schedules, enabling faster market entry and more agility in adapting to client needs.

Small biz. Big plans

Businesses should opt for a payment provider with a strong local presence. This allows merchants to receive payments in local currencies, minimising unnecessary currency conversions and cross-border fees. Additionally, it ensures compliance with diverse regulatory requirements, simplifying operations and reducing potential risks.

To scale a business while keeping acquisition costs low it is important to localise the checkout experience to maximise acceptance rates, adding payment methods specific to each country. One easy way to improve conversion across Europe and the UK, for example, would be to simply add Apple Pay or Google Pay. 

Capabilities like recurring and subscription payments, one-click checkouts, Open Banking integrations, and support for multiple currencies are not optional —they are essential for driving conversion rates and reducing customer churn.

Market knowledge and expertise are non-negotiable. Payment providers can't just give passive support to their merchants only when problems appear. Fintech experts must be available all the time, not only during downtime or chargeback disputes. 

E-commerce businesses require fintech partners that go beyond the initial sales phase, offering proactive guidance and hands-on support throughout the relationship. Access to in-house experts and a commitment to helping businesses grow revenue are critical for building trust and ensuring long-term success.

Shame on…who?

Finally, fintech providers and e-commerce businesses share a joint responsibility to the end consumer. The EU Commission has already opened formal proceedings against platforms such as Temu and Shein due to their addictive hard-selling tactics, hyped reviews, and non-compliant products. However, plenty of ethical checkout conversion payment tactics exist that don't cross the line of businesses being responsible towards their customers.

For e-commerce businesses, engaging with fintech providers is about more than payment processing —it’s about finding a strategic partner who can contribute to growth, innovation, and customer satisfaction at every stage.

In summary

Fintech has the power to make financial services more efficient, primarily through improving the speed, scale and cost of delivery. This drives more user-friendly products and services; more choice; better insights; improved financial inclusion, and quicker, cheaper launches. That’s important for businesses at any time, but particularly during a downturn. 

Right now, fintech payment providers are coming into their own by streamlining financial operations. They’re already delivering easy integrations, one-click checkouts, more right-first-time authorisations, AI-powered fraud detection and prevention capabilities and more to help online businesses not only survive but thrive in tough economic times.