The Eastern Caribbean has created its own form of digital currency meant to help speed transactions and serve people without bank accounts.

According to The Eastern Caribbean Central Bank, its “DCash” is the first such blockchain-based currency introduced by any of the world’s currency unions, though some individual nations have similar existing systems.

It became available Wednesday, March 31, in a year-long pilot programme in four island nations: St. Lucia, Grenada, Antigua and Barbuda, and St. Kitts and Nevis.

DCash was created by Barbados-based fintech company Bitt in partnership with the central bank. Unlike cryptocurrencies, it is issued by an official central bank and has a fixed value, tied to the existing Eastern Caribbean dollar used across much of the region.

The system allows users even without bank accounts – but with a smartphone – to use a downloaded app and make payments via a QR code. Those without bank accounts would go to a previously approved agent or nonbanking financial institution who would verify a person’s information and then approve a DCash wallet.

That person would then go to a supermarket or other store and give the cashier physical cash which would then be deposited as digital currency in their wallet, Bitt spokesman Chris Burnett told The Associated Press.

In addition, there are limits on the amount of money people can send via DCash, there are no plans for now of integrating credit cards and interest does not apply to the digital currency.

The project comes more than two months after the European Central Bank, the Bank of Japan, the Bank of Canada, the Bank of England, the Swedish Riksbank, and the Swiss National Bank created a group to study whether they should issue digital currencies.

The Swedish central bank already has commissioned a pilot program. Meanwhile, China rolled out a digital currency in four cities in April 2020 as part of a pilot program that has since expanded to more than two dozen cities.

While many in the Eastern Caribbean cheered the historic move, some experts worry that digital currency issued by smaller countries could end up being used as a conduit for illicit activities, including terrorism financing and money laundering.

But that skepticism is waning as more central banks get into the act, and as central banks around the world face the inevitability of the declining use of physical cash.

The Bahamas last year became the first country to roll out its digital currency nationwide, and that the Marshall Islands is considering its own cryptocurrency. For smaller countries, “there is more at stake” in part because many people remain unbanked.

Officials said that the digital currency will be available in Anguilla, Dominica, Montserrat and St. Vincent and the Grenadines – which form part of the eight island economies under the Eastern Caribbean Central Bank – by September at the latest.

The project aims to see a 50 per cent reduction in the use of physical cash by 2025. It’s safer, faster and cheaper.

Central Bank Governor Timothy NJ Antoine said he envisions farmers, fishermen, small business owners, single mothers and people without bank accounts, among others, using the digital currency.

Antoine said it is harder to steal digital cash and said it’s a safe way to make payments while avoiding contact during the pandemic.

Source: Associated Press

Last June Apple announced their plan to release App Tracking Transparency (ATT) privacy enhancement feature in the fall.

ATT requires apps to get a consumer’s authorization before tracking them or the devices they are using.

The contentious changes were negatively received by Facebook and much of the ad industry led Apple to delay the move until early this year. Apple said in January that the changes would finally arrive in early spring.

The iPhone maker attaches a unique code to each device, known as Identification for Advertisers, or IDFA. Advertisers can use this tag to monitor what users do in apps and how they interact with ad campaigns.

This new framework, called App Tracking Transparency, or ATT, is more compliant with the strict data-protection rules that have recently appeared in Europe but advertisers complain it will make it harder for them to track how successful their campaigns are.

App developers will now have to get users to explicitly opt into being tracked in this way, before being able to access the IDFA. Ray Wang, principal analyst and founder at Constellation Research, told the E-Commerce Times that “at least 40 percent of consumers will say no.”

Large advertisers will be able to work with App Tracking Transparency, but small and medium sized businesses “will find it harder to succeed in digital marketing and targeting campaigns.

Facebook contends that publishers should expect ad revenue to decline once this feature is rolled out and noted that publisher revenue on its Audience Network fell by more than 50 percent when personalization was removed from mobile app ad install campaigns.

Google will not display Apple’s ATT prompt or use IDFA on its apps available on iOS and acknowledged publishers’ ad revenues might be impacted.

The global advertising industry formed the Partnership for Responsible Addressable Media (PRAM) last August, in response to Apple’s ATT plans.

PRAM “is a joint-industry initiative to advance and protect critical functionalities like measurement and attribution for digital media and advertising, while safeguarding privacy and improving the consumer experience” according to the American Association of Advertising Agencies’ website.

PRAM has about 400 members, including retail giants and advertising industry companies. It wrote an open letter to Apple in September requesting an urgent meeting to discuss issues arising from the introduction of the ATT as “we believe the proposed changes could have a negative impact on both consumers and businesses.”

Personal data will become a property right when consumers have rights over their data, said Ray Wang. Once that happens, consent can be brokered.

“One solution may be for Apple to broker consent and the value exchange; I as the consumer could agree to be tracked for say, $2 a month,” Wang suggested. “Advertisers can pay me, or they will need to find more compelling value exchange models to secure personalization data.”

Nike appears to have found a more compelling value exchange model. Users like Nike’s app, which has begun implementing the ATT framework “because it helps their athletic goals and performance,” Miller noted. Nike likes it because the data shared with partners is clear and transparent, and the user is in control of opting in and out. “It’s a win-win dynamic.”

Constellation Research is helping companies to organize their feedback to Apple on how to further improve its SKAdNetwork API that helps advertisers evaluate the success of ad campaigns while maintaining user privacy.

The Treasury, the UK’s economic and finance ministry, is exploring options for an online sales tax. With this measure, it wants to shift the balance between spending online and in physical stores.

There’s a massive boost in ecommerce in the United Kingdom but the corona pandemic has accelerated the closure of retail outlets across the country. This has led to the Treasury weighing the options to introduce an online sales tax.

But not everyone is looking forward to this measure. The British Retail Consortium for example, says it would high omnichannel players and that it would result in higher costs for shoppers, at a time the British economy is already weak.

A Treasury spokesman said: “We want to see thriving high streets, which is why we’ve spent tens of billions of pounds supporting shops throughout the pandemic and are supporting town centers through the changes online shopping brings. Our business rates review call for evidence included questions on whether we should shift the balance between online and physical shops by introducing an online sales tax. We’re considering responses now.”

According to The Guardian, several big retailers, including Tesco, are in favor of an online sales tax.

Last year, 46 percent more money was spent online in the United Kingdom compared with a year earlier. Ecommerce now accounts for about 30 percent of overall retail sales in the UK, up from about 20 percent a year ago.

Visa Inc. announced today the availability of a new benefit for its Visa consumer credit accountholders in the U.S.

Consumers with Visa Infinite, Visa Signature or Visa Traditional credit cards can now enroll and take advantage of a complimentary offer and discounts on products and services from NortonLifeLock, a global leader in consumer Cyber Safety.

“The past year has brought tremendous change in the way people are using their Visa credit cards and associated benefits,” said Brian Cole, head of product, NA, Visa. “Our new benefits with NortonLifeLock address some of the most requested benefits among our U.S. accountholders, and will help bring value to Visa accountholders every day, from anywhere they may be.”

ID Navigator Powered by NortonLifeLock is now available to consumers with Visa Infinite, Visa Signature or Visa Traditional credit cards. Identity theft protection benefits ranked #3 in customer preference out of 46 benefits tested in a Visa U.S. Credit Benefit Research study (2020). LifeLock is a leader in identity theft protection, making it a top priority addition to Visa’s card benefits platform. Accountholders can take advantage of complimentary Dark Web Monitoring, One-Bureau Credit Monitoring Alerts, Stolen Wallet Assist, and Restoration Assist features. Accountholders can use the LifeLock Identity app to help manage their account and alerts. Accountholders will also have access to special offers on more robust identity theft offerings that include restoration features such as the LifeLock Million Dollar Protection™ Package.

“Taking steps to be more informed about potential threats to your identity is one of the most important things you can do to help secure your financial and digital life,” said Robert Clarkson, chief commercial officer, NortonLifeLock. “We look forward to helping provide resources and tools that Visa accountholders need to stay vigilant as it furthers our vision to protect and empower consumers to take control of their digital lives.”

This updated offering of account benefits is part of Visa’s commitment to providing credit benefits that are designed to deliver meaningful value and meet evolving consumer needs and expectations.

The beginning of the year is the time to write about trends and forecasts.

OK, what can we expect in 2021 as far as ecommerce is concerned?

The main point here is that the ecommerce world is becoming increasingly competitive.

No matter how mature your ecommerce store is right now, if you don’t keep up with ecommerce trends, you’ll risk falling drastically behind.

1. Online Sales Growth is Unstoppable

Online shopping is one of the most popular online activities. The sales are projected to increase from 1.3 trillion in 2014 to 4.5 trillion in 2021 (Statista, 2019). That’s a massive figure. It would mean a threefold growth over a 7-year span.

2. The Future of Ecommerce After COVID-19

Experts predict that the impact of the coronavirus will not just be a short-term boost to ecommerce but one that’s here to stay, even after COVID-19. This is because people will get comfortable with the comfort and convenience it offers and the benefits of contactless payments, both of which are likely to cause a permanent behavioral shift towards digital purchases.

Market analysts say that the ecommerce industry will be the biggest beneficiaries of the coronavirus pandemic. Penetration rates, which are currently at 15 percent, are expected to increase to 25 percent by 2025 (MarketWatch, 2020). That marks a 67 percent increase in five years.

3. Mobile Shopping is Growing

By the end of 2021, 73% of ecommerce sales will take place on a mobile device (Statista, 2019). Improving the ecommerce experience for mobile customers can be a huge opportunity for businesses to tap into.

As trust in online shopping is increasing, consumers feel more comfortable shopping on mobile devices than ever before. Especially when it comes to Millenials and Gen Z who have grown up surrounded by computers and the internet.

4. Young Consumers Will Change the Business Landscape

Even though this shift to online shopping is seen across consumers of all ages, it’s mostly the younger generation that’s responsible for this ecommerce trend.

Survey results show that 67 percent young consumers aged 18 to 34 are spending more money purchasing items online now than before the pandemic (Shopify, 2020).

Сonsider increasing your social media marketing efforts. More than half of young consumers who buy from independent brands discover them via social media—more than any other age group.

5. Evolving Role of Social Media in Ecommerce

With the introduction of the “Buy” button on Facebook, and Instagram Checkout, platforms like Shopify, TikTok, social media is playing a significant role in the world of ecommerce.

This is a great opportunity for brands to start thinking about how to improve their position on social media, which is a great platform for brands to get discovered.

TikTok has been working on incorporating ecommerce elements and its latest efforts include testing a new feature that will allow users to include shoppable links in their profiles or videos.

That’s why brands need to adopt a shopping-focused approach to their social media strategy.

6. Environmental Topics Influence Buyers

Half of digital consumers say that environmental concerns impact their purchasing decisions.

Online businesses need to step in and make sure that their practices are environmentally friendly.

7. The Desire To Shop With Independent Businesses

A growing number of consumers are also becoming more open towards purchasing from independent businesses. 57 percent say they’re willing to shop with new brands for the first time (Shopify, 2020).

8. Augmented Reality Transforms How We Shop

By 2022 over 120,000 stores will be using Augmented Reality (AR) technologies, offering a much richer buying experience (Prnewswire, 2018).

One of the main concerns that people have when shopping online is the inability to see the product firsthand. AR technology helps bridge this gap and enable online shoppers to better visualize the products that they are interested in.

Some ecommerce brands have already started to experiment with AR, which will help them stand out from the competition.

9. Personalization is the Future

More than 50% of shoppers say that a personalized online experience is important (Bazaarvoice, 2018). Personalizing the online shopping experience is the key to keeping customers satisfied. This could include the personalization of messages that go out via email, or by providing the right information to the interested consumer group.

By offering personalized customer communications, providing relevant discounts, and engaging with customers through, for instance, video content, will help deliver a better shopping experience and strengthen the bond with your customers.

10. Visual Commerce Is on the Rise

Visual commerce is the next generation of normal static visuals. Visual commerce takes it one step further by incorporating other types of visuals such as consumer-generated media, interactive content, engaging videos, and as previously mentioned, augmented reality.

Visual commerce is slowly but surely becoming an integral of ecommerce, as shown by the growth of the deep-learning technology behind it. This includes the image-recognition market, which is set to grow from $20.19 billion in 2018 to $81.88 billion by 2026 (MarketWatch, 2020).

To sum it all up, with the advancement in technology and changes in consumer behavior, you need to keep an eye out for these ecommerce trends in 2020. Whichever ecommerce trend you decide to adopt, do it with the aim of improving the shopping experience for your customers, and building a long-lasting relationship with them.

Reiters

China has launched an antitrust investigation into Alibaba Group and will summon the tech giant’s Ant Group affiliate to meet in coming days, regulators said this Thursday, in the latest blow for Jack Ma’s e-commerce and fintech empire.

The probe is part of an accelerating crackdown on anticompetitive behaviour in China’s booming internet space, and the latest setback for Ma, the 56-year-old former school teacher who founded Alibaba and became China’s most famous entrepreneur.

It follows China’s dramatic suspension last month of Ant’s planned $37 billion initial public offering, which had been on track to be the world’s largest, just two days before its shares were due to begin trading in Shanghai and Hong Kong.

In a strongly worded editorial, the ruling Communist Party’s People’s Daily said if “monopoly is tolerated, and companies are allowed to expand in a disorderly and barbarian manner, the industry won’t develop in a healthy, and sustainable way.”

Shares in Alibaba fell nearly 9% in Hong Kong, their lowest since July, while rivals Meituan and JD.com both fell more than 2%.

Alibaba’s U.S. stock tumbled 13% in its largest one-day drop since its debut on the New York Stock Exchange in 2014.

Regulators have warned Alibaba about the so-called “choosing one from two” practice under which merchants are required to sign exclusive cooperation pacts preventing them from offering products on rival platforms.

ONE FROM TWO

Ma has kept out of the public eye since a late October forum in Shanghai where he blasted China’s regulatory system, accusing it of stifling innovation in a speech that stung officials and set off a chain of events that led to the shelving of Ant’s IPO.

The practice of requiring a merchant to sell exclusively on one platform, which Alibaba had defended in the past, has long been a source of friction.

In a lawsuit last year, home appliance manufacturer Galanz accused Alibaba of penalising it for refusing to stop selling goods on rival platform Pinduoduo. The case was resolved. In an ongoing case, JD.com accused Alibaba’s Tmall of restricting vendors from trading with it by signing exclusive deals.

BRACE FOR SCRUTINY

After years of largely hands-off treatment of e-commerce, Beijing has made its antitrust intentions clear.

Last month, it issued draft rules aimed at preventing monopolistic behaviour by internet firms, and the Politburo this month vowed to strengthen anti-monopoly efforts in 2021 and rein in “disorderly capital expansion.”

China also warned internet giants this month to brace for increased scrutiny, as it slapped fines and announced probes into mergers involving Alibaba and Tencent Holdings.

Liu Xu, a researcher at the National Strategy Institute of Tsinghua University and a long-time advocate for antitrust enforcement, said he expected other tech platforms to face scrutiny.

“Chinese internet firms had enjoyed unprecedented growth with light regulation for years,” a regulatory source said, declining to be named given the sensitivity of the matter.

“The latest regulatory moves against them have sent out a clear message that the golden time for many of them has ended and there’s no company in China that can be too big to fail.”

Regulators have also become uncomfortable with parts of Ant’s sprawling empire, chiefly its credit business that contributed close to 40% of first-half revenue. Days before Ant’s planned listing, regulators told Ma and two top executives that its online lending business would face tighter scrutiny, sources told Reuters.

Warmest thoughts and best wishes for a cheer filled season and a very happy and healthy New Year!

May your days be merry and bright.

Merry Christmas!

Ten US states brought a lawsuit against Google, accusing the search giant of “anti-competitive conduct” in the online advertising industry, including a deal to manipulate sales with rival Facebook.

Texas Attorney General Ken Paxton announced the suit, which was filed in a federal court in Texas, saying Google is using its “monopolistic power” to control pricing of online advertisements, fixing the market in its favour and eliminating competition.

Google, which is based in Mountain View, California, called Paxton’s claims “meritless” and said the price of online advertising has fallen over the last decade.

Paxton led a bipartisan coalition of 50 U.S. states and territories that announced in September 2019 they were investigating Google’s business practices, citing “potential monopolistic behaviour.”

Now Texas is bringing the suit along with other Republican attorneys general from Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, North Dakota, South Dakota and Utah.

The complaint targets the heart of Google’s business — the digital ads that generate nearly all of its revenue, as well as all the money that its corporate parent, Alphabet Inc., depends upon to help finance a range of far-flung technology projects.

As more marketers have increased their spending online, those digital ads have turned Google into a moneymaking machine. Through the first nine months of this year, Google’s ad sales totalled nearly $101 billion (€82.5 billion), accounting for 86% of its total revenue.

And now the states contend Google intends to use its alleged stranglehold on digital ads to choke off other avenues of potential competition and innovation. The company struck an illegal deal with Facebook, a major competitor for ads, to manipulate advertising auction, according to the complaint. Facebook declined to comment.

In the “ad tech” marketplace that brings together Google and a huge universe of online advertisers and publishers, the company controls access to the advertisers that put ads on its dominant search platform. Google also runs the auction process for advertisers to get ads onto a publisher’s site. Nine of Google’s products in search, video, mobile, email, mapping and other areas are estimated to have over a billion users each, providing the company with a trove of users’ data that it can deploy in the advertising process.

Google officials say the company shares the majority of its “ad tech” revenue with publishers, such as newspaper websites. An official recently rejected even the assertion that Google is dominant, saying that market dominance suggests abuse, which is foreign to the company.

The state’s suit comes after the U.S. Justice Department sued Google in October for abusing its dominance in online search and advertising — the government’s most significant attempt to buttress competition since its historic case against Microsoft two decades ago.

Separately, the FBI is investigating whether Paxton, a close ally of President Donald Trump, broke the law in using his office to help a wealthy donor who is also under federal investigation. This fall, eight of the attorney general’s top deputies accused him of bribery, abuse of office and other crimes in the service of an Austin real estate developer who employs a woman with whom Paxton is said to have had an extramarital affair.

All eight of Paxton’s accusers have since been fired or resigned, including the deputy attorney general who had been leading the office’s probe of Google. The court complaint list attorneys with private firms in Houston, Chicago and Washington, D.C., as the lead lawyers on the case.

Paxton announced the lawsuit the week after the U.S. Supreme Court rejected his legal push to overturn Joe Biden’s victory in the presidential election, a case that prompted widespread speculation that the attorney general is angling for a preemptive pardon from Trump.

The American Economic Liberties Project, an organisation that advocates for government action against business concentration, welcomed the states’ suit.

The E-Commerce Times reports that in the midst of the pandemic mobile shopping apps have become central to online retail operations and they’re clearly here to stay.

In fact, by 2021 mobile e-commerce, or m-commerce, sales are expected to account for 54 percent of all retail ecommerce sales.

The reporters spoke with m-commerce specialists to find out what’s behind the rapid growth of consumers shopping on mobile devices, what mobile shoppers require from shopping apps, and how retailers can provide a better experience for their customers who use mobile devices.

Steven Boal, CEO of Quotient argues that shopping apps are popular with consumers because they are a great way to experience a brand in an immersive digital setting. By this, he means that shopping apps can have the same experiential effect as a physical store where consumers can experience a shopping environment that’s created for physical discovery but conveniently anytime and anywhere.

Consumers can the same way take part in loyalty programs, order and have things delivered.

Besides, 81 per cent of Americans have smartphones and use them a lot every day. Companies try hard to make their apps simple to use.

Heidi Bullock, CMO at Tealium agrees saying that convenience is increasingly driving the consumer experience. Beyond just being convenient, shopping from smartphones or tablets also allows consumers to shop in-the-moment and solve the problem on the spot. A centralized hub for consumers’ relationship with a brand makes shopping personalized.

Rob Fagnani, head of business development and operations at Formation, points out that shopping apps should be easy to navigate to discover and find the right products, have seamless payment and commerce flows, and more than anything, tailor the experience as much as possible to the user, everything from the product assortment to individualized offers.

To feel useable and relevant, apps must also ultimately fit naturally into the daily life of consumers.

People want to download an app and instantly understand how it works, whether they’re looking for a particular item, browsing a weekly sales ad, or scrolling through the latest promotions. When those promotions are tied to the consumers’ behavior or previous interactions, you can create a warm, unique, memorable and valuable experience.

Evolving the experience over time so that it is personalized and anticipates the user’s next need is a key component to mobile app success,” Britt Mills, senior director of customer experience for Mobiquity, told the E-Commerce Times.

Experts forecast that shopping apps will continue to evolve with consumer demand and needs but as some customers are comfortable going to physical shops now, many brands need to continue maintaining and growing their physical and digital storefronts for the months and years to come.

Consumers are likely to continue using a blend of in-store and digital solutions even when the world returns to normal. Retailers should explore ways to make their digital solutions blend with in-store.

It will not be enough to just advertise your products, but you will have to actively pursue and engage your potential customers, through avenues such as tailored remarketing, custom UX for every client on each app, and seamless checkouts.

You can see the beginning of this already taking place with the integration of social media and marketplaces, such as Facebook and Instagram, and with the likes of TikTok and YouTube following suit. A seamlessly-tailored online experience between social and business is the next step in a world tailored to each individual.

Ecommerce News Europe writes that ecommerce fraud is becoming a real problem in Germany.
The reason is the preferred payment method of German shoppers.
A common form of ecommerce fraud is when the scammer orders something online, chooses to pay on account, provides a false or found name and account number, and gives a certain address where he can then pick up his order. The fraudster runs off with his expensive, but free product, while an innocent person is stuck with the bill.
Only getting someone’s name and date of birth can sometimes be enough to trick online shops.
A television crew spoke with the head of a gang of about 200 fraudsters. He’s currently in prison as he got arrested after six years of investigation. He and his network stole about 13 million euros, generated through about 26,000 online orders.
According to the Russian fraudster, he deliberately chose Germany after trying to commit fraud in several other countries. “Compared to other countries, the security system in Germany is the weakest”, he says.
The fraudster blames the companies that make their payment mechanisms available to online retailers in Germany.
German online shoppers like to buy on account as it is easy. Most retailers have little choice but to offer the risky invoice as a payment method. A spokeswoman for service provider Ratepay admits that if they make paying too difficult, nobody buys anymore and then they don’t make any more sales.
There are always additional security measures like two-factor authentication. But most consumers see these things as a hurdle as well. For the online retailer, it’s weighing security against sales.
Consumers are also hurt by the crime. For example, in a woman’s name there were goods ordered with a total worth of 6,000 euros, leading to trouble with debt collection agencies and possible Schufa entries (credit record in Germany).
And there is a simple, but painful reason she didn’t notice anything about the supposed orders until the reminders came. For many online shops, it’s sufficient to get a real name and date of birth in order to offer purchase on account. A customer would also have to provide a home address and e-mail address, but these won’t get checked. They can therefore be set up by the fraudsters themselves.
According to Stefan Keller from the law enforcement agency in Berlin, there were over 19,000 cases in the city-state alone last year. And the clearance rate is only 12 percent.