This white paper examines the trends and common themes associated with merchants who thrived versus merely survived 2020 and the lasting changes on eCommerce and omni-channel retail. This includes a look at differences in risk management strategy architecture, readiness to scale and effective communication between the digital and physical worlds to support a true Unified Commerce strategy.
A common theme throughout 2020 has been the acceleration of digital adoption across both businesses and consumers. We take a look at the lingering impacts on payments and risk across multiple studies and reports comparing consumer and fraudster activity between 2019 and 2020.
Cyber Monday 2018 was the largest online shopping day recorded in the U.S. with $7.9 billion in sales volume, according to Adobe Analytics. Online sales on Black Friday grew 24 percent from 2017 to $6.2 billion this year as mobile shopping and pick-up in-store saw the largest growth.
While Cyber Monday online spending increased about 20 percent year-over-year, mobile payment transactions represented $2.2 billion of the $7.9 billion sales total for the day. Mobile spending was up nearly 56 percent from Cyber Monday 2017. Adobe additionally estimates that online sales on Thanksgiving Day reached $3.7 billion, an increase of 29 percent from 2017.
Once primarily known for POS hardware, Ingenico Group greatly increased their eCommerce payment services with the late 2014 acquisition of GlobalCollect, and will now increase their omni-channel service offerings following the acquisition of Think&Go NFC, a French company that owns technology and patents for digital display screens leveraging NFC and Bluetooth Low Energy (BLE) beacons to support payments, coupons and other commerce and marketing features.
Michel Léger, Ingenico’s EVP of Innovation, said this acquisition will give the company “greater opportunity for expansion in the field of connected objects,” further elaborating that the move will help Ingenico execute their strategic plan through 2020, which looks to “strengthen Ingenico Group’s leadership in omni-channel payment acceptance.”
Borderfree, a publicly traded company providing site localization, global logistics services and other solutions for eCommerce merchants that are expanding sales internationally, was acquired by global technology company Pitney Bowes for $395 million in early May.
President and CEO of Pitney Bowes, Marc B. Lautenbach, stated that this acquisition “not only makes sense for our clients, it accelerates our strategic vision to grow our company through expansion of our digital commerce businesses.” The two companies offered complimentary cross-border eCommerce solutions and by combining their capabilities Pitney Bowes seeks to further help clients by reducing the complexities of cross-border eCommerce.
ACI Worldwide announced their acquisition of an industry veteran fraud solution provider Retail Decisions (ReD) for $205 million in cash in late July. The acquisition will help ACI bolster their services for both merchants and financial institutions. The deal is expected to close during the third quarter.
The acquisition of ReD also boltsters ACI Worldwide’s omni-channel payment services. ACI Worldwide CEO, Philip Heasley, discussed the issues retailers will face “operating disparate systems for their online, mobile and point-of-sale operations,” but believes that the “ACI and ReD together have an unrivaled merchant retail solution,” that is “global, omni-channel with integrated fraud management built on Universal Payments technology.”