Payment Predictions

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Payment Predictions

The first online payment was made in 1994. Here’s what’s in store for eCommerce as we look ahead.

US eCommerce sales are set to reach a total of $605 billion by the end of 2019, but it all started in the year 1994 with a $12.48 purchase made using a Visa card. That was the amount of the first-ever secure online transaction. Although using digital payments to buy goods online is common now, this pivotal moment 25 years ago started the digital retail revolution we know today as eCommerce. And it’s evolving fast. Here's a look at how eCommerce has transformed our lives and will continue to transform. Tap below to uncover how the foundation of credit cards revolutionized different eCommerce payment methods for today and tomorrow.

When introduced, credit cards were a new phenomenon

To understand where eCommerce is heading, let’s look back at its foundation. Picture the 1950s. This is when credit cards were first introduced. They were designed primarily for business travel and dining. For the first time, customers could make expenses at multiple locations without carrying cash. As the 20th century went on, credit cards, debit cards, and ATMs became more popular. Whenever a customer entered a store, they were no longer concerned about carrying enough cash in their pockets. And as we entered the 21st century, the internet changed the commerce ecosystem. It’s safe to say before the 1990s, no one thought about using a credit card in another universe — the World Wide Web. But after credit cards exemplified success and safety, they paved the road to an abundance of eCommerce possibilities.

The Credit Card

First Online Purchase

Rise of eCommerce

The Credit Card

The first secure online purchase was a success

Who knew using your credit card to make an online purchase could guarantee you a spot in history? In 1994, that’s exactly what happened. A small purchase of a rock album was made using a Visa card. That was the first time an online retail transaction used data-encryption software to ensure privacy. Daniel M. Kohn, a 21-year-old chief executive at NetMarket, celebrated that day as one of the major moments in cyberspace. What followed was a rapid growth in the eCommerce industry. Now we’re seeing digital wallets replacing leather ones, shipments delivering within two hours, and smart technology enhancing customer experience. All because of the possibility to extend commerce online.

First Online Purchase

The Credit Card

Online brands came to the forefront

After the first online transaction, the eCommerce market exploded. New companies came to the forefront to start their online businesses. Soon enough, eCommerce was the backbone for small startup services spanning food delivery, media streaming, marketplaces, storefronts, payment systems, and more. These companies caught on quickly that their customer base wanted everything available to them at their fingertips. So they built their business model with a stronger focus on online experiences over in-store experiences. Once more, people saw the convenience of ordering their favorite items and services from the comfort of their own homes. All eyes were now focused on fast shipping and flexible payment options.

Rise of eCommerce

First Online Purchase

Digital payments cut out monotonous steps in the payment process

In 2012, new digital payment methods were introduced that made it easier for people to still pay with their credit cards but now on their mobile devices. Before this rollout, consumers had to remember their account information and passwords for each site when shopping online. Enabling a click to pay experience helps tackle these pain points. Visa credit-card holders will no longer have to enter 16-digit primary account numbers, look up passwords, or fill out long forms to make a purchase. Paying for items in the future will continue evolving, giving customers an easy, seamless shopping experience, with the expectations to receive their items quickly.

Packages are delivered the same day consumers make an online payment

As payment opportunities extend to desktop computers and mobile devices, more customers can shop conveniently. But the more consumers shop online, the more they expect items to be delivered to their front doors as quickly as possible. Because of the shipping wars between large retailers, in the span of one click customers can now get their orders anywhere from two days to two hours. This makes package delivery one of the most prominent aspects of eCommerce. Combining fast delivery with secure payment methods creates a simpler online shopping experience. Once it becomes easy to shop online, it can become second nature — and that’s why we’re seeing online sales growing at nearly five times the rate of brick-and-mortar sales. If online sales continue to grow, more customer information becomes available, which then raises questions about increased security measures.

Digital Payments

Same-Day Delivery

Consumers can shop with ease knowing there are safe and smart ways to pay

As eCommerce grows, secure measures are tailored to decreasing fraud and risk, without disrupting the customer's online shopping experience. Secure measures like chip technology have helped reduce fraud in stores, but when it comes to making online payments, click to pay enabled transactions use a single payment profile across various participating merchants and devices to give customers an easy and smart way to online shop. There are a lot of ways this helps both consumers and retailers. After registering for the first time using the click to pay experience, consumers won't have to enter their 16-digit credit-card number, look up old passwords, or fill out long forms when they want to make a simple purchase. For retailers, sensitive customer credentials like account numbers can be masked with a token that never exposes card numbers or other personal account details. As added secure precautions are implemented in online retail experiences for both the customer and the merchant, they can worry less about their data being compromised — and instead can focus on fun, personalized digital experiences.

Secure Payments

IoT transforms retail and eCommerce

Digital payments have revolutionized retail, and now they're setting the framework for where the future is heading. Brands are slowly introducing smart technology not only to help them monitor and track inventory but also to enhance customers’ experiences by navigating them directly to what they’re looking for. At retail stores, smart mirrors make fitting rooms interactive so people can see how items look and find out which colors and sizes are available, all without stepping away from their spot. Smart shelves at select grocery stores can highlight products based on a customer's dietary or lifestyle preference. And taking it a step further, some retailers are testing robots that can actually roam around the store to give directions, answer questions, and directly monitor inventory. As more Internet of Things (IoT) devices are introduced, so are more payment avenues. Tech companies are building IoT devices like smart refrigerators that can signal when a grocery item is running low and easily let customers send a simple command to purchase it. The more we look into the growth of IoT devices within the eCommerce industry, it seems only logical that the market becomes more versatile and constantly at the fingertips of the customer.

Internet of things

Personalization

Digital personalization encourages customers to purchase items based on experiences unique to them

When shopping online, it’s no surprise customers now want the same personal touch they expect in brick-and-mortar stores. That's why retailers are using emerging technology to tailor experiences for them on- and offline to generate more revenue, while also building their trust. We see this happening with artificial intelligence (AI). Some merchants create online tools that combine AI with augmented reality to give customers a look and feel of what the products look like. Looking ahead, brands will continue to adopt more personalized experiences will attract a loyal, dedicated consumer base.

Personalization

Internet of Things

From personalized shopping experiences to drone delivery, eCommerce has grown significantly since the first secure online purchase in 1994. And the retailers who excel are the ones who give their consumers convenient and safe ways to shop. On the heels of the 25th anniversary of the first secure online payment used with a Visa card, Visa is looking ahead and building a foundation for the next 25 years.

Learn more about its initiative.

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chip technology

Learn more about its initiative.

The first online payment was made in 1994. Here’s what’s in store for eCommerce as we look ahead.

Digital payments have revolutionized retail, and now they're setting the framework for where the future is heading. Brands are slowly introducing smart technology not only to help them monitor and track inventory but also to enhance customers’ experiences by navigating them directly to what they’re looking for. At retail stores, smart mirrors make fitting rooms interactive so that people can see how items look and find out which colors and sizes are available, all without stepping away from their spot. Smart shelves at select grocery stores can highlight products based on a customer's dietary or lifestyle preference. And taking it a step further, some retailers are testing robots that can actually roam around the store to give directions, answer questions, and directly monitor inventory. As more Internet of Things (IoT) devices are introduced, so are more payment avenues. Tech companies are building IoT devices like smart refrigerators that can signal when a grocery item is running low and easily let customers send a simple command to purchase it. The more we look into the growth of IoT devices within the eCommerce industry, it seems only logical that the market becomes more versatile and constantly at the fingertips of the customer.

Think of all the items you own. They were most likely ordered online.