Digital payments shaping future of E-Commerce in Sri Lanka

Digital payments shaping future of E-Commerce in Sri Lanka
Founder and Chief Executive of Direct Pay Kanishka Weeramunda

The payment ecosystem has been evolving rapidly, in the last few years with the surging shift towards digital payment options. This continuous growth in the entire global payments ecosystem has led to entrepreneurs and startups inventing new and innovative mechanisms to improve the way we move money in society.

Among the rising trends of the future of payments, digital wallets can be seen as the leading trend globally. DirectPay is a pioneer in building the digital payment ecosystem in Sri Lanka, working the required infrastructure with some of the leading local banks in the country.

DirectPay Founder and Chief Executive Kanishka Weeramunda said “With the exponential growth of mobile payment transactions and the never-ending consumer hunger for online shopping, e-Commerce companies around the world are benefiting from Digital Payment mechanisms.

In Sri Lanka e-commerce giants like Takas, Wow and MogoSuper are starting to offer digital payment options as the primary methods of making payments. Many fashion stores on the outskirts of Colombo such as “Molly Boulevardare going online to reach new customers beyond their city limits that has lead in achieving a visible difference in online sales compared to walk-in sales due to the widespread availability of digital payment options. This shows that consumer’s today need a payment platform that is both secure and simple to use. Therefore, going cashless has become a preferred choice more than a convenience for many.”

What’s beyond

He further elaborated “According to leading analyst reports mobile wallets could be the most significant transformation in payments processing. Retailers are especially excited about it as they can offer valuable insights about customer transactions and other useful data that companies can use to enhance the consumer experience.

The accuracy and speed of mobile payments can help increase foot traffic in stores, which in turn would generate more sales.”

“Research indicates that in-store mobile payment volume is expected to grow from $75 billion in 2015 to $503 billion in 2020 worldwide, a clear indication that the world is moving towards digital payment solutions and those who do not accommodate this shift will be left behind.”

 “For millennials, whose prominence is increasing in the marketplace, digital payments have become common place. Therefore, it’s now on industry leaders to create action plans that keep up with the demands of the millennial purchaser. This doesn’t mean thinking a couple of years out, but rather decades. Hence shopping trends are all pointing to m-commerce (mobile commerce) as the future wave for next-generation shoppers. “

Contributing to the country's digital payment ecosystem

Within this dynamic ecosystem, DirectPay’s long term vision is to empower local industries and consumers with the opportunity to embrace a cashless economy and to exercise their purchasing power with greater ease’.

The company has been appointed to facilitate the eLocal government service payments launched early this year that has revolutionized the payment landscape in the public sector. Theyare also making waves amongst the SME retail space as well as with the leading retailers in the country that includes international franchise outlets.

Weeramunda said “we are quietly optimistic of making the best of Sri Lanka’s growing mobile internet population to make them become savvy at digital payment. Going digital however cannot be a success, until rural parts of the country become active participants. This is why DirectPay are concentrating on rural segments of the retail industry and making them understand the value, convenience and cost effectiveness of the digital payment model. We are happy to be a key player helping the country, convert both retailers and consumers to consider digital payments as a preferred mode of transaction.”

“ With the number of mobile internet users in the country waiting to be snapped up, it’s time for Sri Lanka to be in sync with the global market by creating mobile-friendly payments that deliver a simple, secure experience which will convert and foster long-term loyalty amongst shoppers,” concluded Weeramunda.