Cash & Liquidity Management
Published  6 MIN READ

E-Commerce and Strong Customer Authentication: Is Your Treasury Ready?

As corporations pivot towards digital business models to help weather the Covid-19 pandemic, regulation continues to shape the European payments industry. Treasurers must prepare for the changes that Strong Customer Authentication brings, while embracing the latest e-commerce strategies. Sara Savidge, Managing Director, and Colm O’Monacháin, Vice President, J.P. Morgan Wholesale Payments, explain the key steps for treasury functions to take – and the pitfalls to avoid.

Business operations have been turned upside down as the Covid-19 pandemic has sent countries across the globe into lockdown. Physical purchases of goods and services have waned, while digital business models and e-commerce have risen steadily. In fact, 35% of people globally are now grocery shopping online or by phone as a result of Covid-19 and 45% are increasingly using their mobiles as a shopping channel 1.

Of course, not all industry sectors have enjoyed a boom. According to J.P. Morgan’s 2020 E-Commerce Payments Trends – Global Insights Report2, global e-commerce travel transaction volumes were down 91% year-on-year in April 2020, with lockdown taking its toll. Nevertheless, food, home entertainment and subscription services are underpinning growth.

Alongside the momentum generated by Covid-19, the ongoing success of direct-to-customer business models and the rise of advanced app-based e-commerce3 are also driving online sales. Sara Savidge, Managing Director, J.P. Morgan Wholesale Payments, advises: “To succeed in the new era of global e-commerce, organisations must quickly shift to meet the growing demands of customers by improving the online experience, making sure all relevant payment types are available, and ensuring speedy and simple digital interaction – especially during checkout.”