According to the Bloomberg report, Tiago Dalvi, the founder and CEO of the Olist Startup, believes to process almost 15 percent of its annual transactions by the end of this year via its internal banking service.
Further, Tiago said in this report that “after sales, the major challenge of our customers is access to proper financial services. There is a huge communication gap between companies and retailers, in this situation, without that, retailers cannot raise their business.
According to the report, Olist’s clients are mostly small to medium-sized businesses (SMBs) with the bulk of sales still passed out over physical transactions.
A further report said that while the pandemic helped activate a prosperous period in Brazil’s eCommerce sector, it still only accounts for about 12 percent of total sales. Olist is observing the payment process and receipts while rolling out tap-to-pay technology on its app.
Bloomberg pointed out that Olist recorded $30 billion raised ($5.8 billion) in 2023 and that it will process about $4 billion in raised payments internally by the end of the year. The Olist soft-launched the financial services in 2023 and has about one thousand customers using them.
Associated to merchants who use an omnichannel approach or who mainly trust on eCommerce platforms, smaller retailers who keep track of their sales via brick-and-mortar transactions are most at risk of closing at the moment the updates are publicized.
According to the PYMNTS Intelligence research, the report showed that almost 9 percent of companies that sell mostly in physical stores are at risk of closing, as opposed to 7 percent of those who rely on eCommerce and less than 5-percent of those who divide their business equally between digital and physical channels.
In an interview with a news website, VP of authorize.net Alex Burgin said that businesses of all sizes require simple and user friendly websites, with simple designs that are easy to navigate, and have instinctive shopping carts.
Further, Alex said that “whether it’s a lemonade stand on the side of the road, or a difficult PC computer company, every business is required to accept online payments,”. “And fundamentally, every firm needs to think about what their digital presence looks like and how they relate to their consumers.”
Customers tend to increase their spending when shopping through different digital channels. A PYMNTS Intelligence study of close to 2,700 U.S. customers showed that the average money spent per online purchase is $127, while in-store purchases come in at $87.
Source: PYMNTS
