How ecommerce is exploding in SAMonday, 19 Mar 2018
Ecommerce in South Africa is exploding and is estimated to have amounted to about R10bn during 2017.
There is a massive growth opportunity in the digital commerce sector and it It is driven by high mobile penetration,
rising consumer confidence in online transactions, and the expansion of brick and mortar retailers into the online sphere by adopting a multi-channel approach.
At the same time consumers' shopping habits are changing too. Many do research online and then complete the transaction in-store, or the other way around.
Local internet retailers are modifying channels to be able to add more value for their consumer base. They are simplifying and improving accessibility and offering more benefits.
Recent research on SA shows people are browsing three hours or more on their mobile phones and 25% shop online. They trust local brands.
Competition is fierce and the more mobile friendly channels are accelerating. Smaller businesses can also use social media as "store fronts" for their brands.
Ensuring secure payment and trustworthy, convenient interaction remain important for competing in the ecommerce sphere.
Customers also remain concerned about non-delivery and fraud remains a risk as well as potential damage to goods.
To address the risks associated with data breaches, Mitchley said Visa foresees increased use of tokens for payment.
Tokens will reduce fraud as the domain and user are restricted to a particular device, merchant, transaction type or channel.