Fintech, the core gas for e-commerce and markets

It is not uncommon to discover in foreign documentaries about the French country market as a symbol of the French savoir-vivre. This event with a fixed date is a distant variation of the 12th century champagne fairs, the genesis of the modern market economy, according to historian Fernando Braudel. Ten centuries later, the appeal of the market continues in virtual form.

Let’s judge. In 2021, the French spent 129 billion euros on online purchases of products and services, which is an increase of 15.1% compared to 2020, according to FEVAD.[1]. However, of the 20 most visited shopping sites in France, 17 were markets or “markets”. With 42 million cyber customers, the market has overshadowed the mall or mall and become the cornerstone of online shopping.

Highly competitive world

It should be noted that the marketplace refers to a platform, owned by a large company and that connects sellers and buyers. The market expands the company’s offer, attracts new customers and increases turnover through sales commissions. In an ultra-competitive world, it must offer a wide and high quality offer convincing both customers and third parties.

There are many new challenges that need to be overcome in order to win the game. Let’s mention the image risk, related to “suspicious” sellers, innovations in the method of payment that need to be overcome, optimization of the customer’s path, optimization of the supply chain and customer loyalty. This situation has prompted markets to acquire new strategic partners to manage their activities, including fintechs for part of payments and financing. Why fintech? Because agility, speed of execution and the ability to graft their solutions onto existing information systems are in their genes. They can certainly rely on traditional players, but they are three to four times faster than them.

Here we are talking about the phenomenon of “built-in finance”, financing closely related to markets, even brands, which is made possible by programs that can be easily connected to each other, such as Lego construction games.

Let’s start with the phenomenon of Buy Now, Pay Later or Divided Payment, which won French and European trade in a few years. According to the Banque de France, this financing model already represents more than 4.5 billion euros a year. “BPL”, very popular with Covid, allows customers to access the deferred payment solution in a very simple way, and markets and e-merchants to differentiate with increased sales. Some fintechts even talk about increasing the average basket for e-merchants by more than 50% after the implementation of the “BPL” solution.

This development for the end customer is just the tip of the iceberg. It has become crucial for markets to have the best third-party vendors to expand their product range, while guaranteeing impeccable quality of service. Image risk can become significant for e-merchants who sell products externally on their own sites, without any means to control the “sources” of these products.

Facilitate logistics management

To make sure and keep the best third-party vendors, the first step was to make it easier for them to manage logistics. Today, a battle is being fought over a solution that will enable them to finance their shares and sales growth, gradually replacing bank financing.

Amazon, which in 2020 indicated that it had invested $ 18 billion in developing services with its third-party vendors during the year, unveiled its new Amazon Community Lending offering in September 2021. Using fintech Lendistry, Amazon is offering up to $ 10,000 directly to third-party vendors party to finance inventory and brand development.

In addition to inventory financing, there are options for insuring customers and even supply chain insurance for sellers. Here, too, fintechs should offer fast and relevant solutions.


[1] Estimation of e-commerce in France 2021