How Advancements in Technology Have Changed the Way You Spend Online

WORDS: Ocean Road Editorial Staff PHOTOGRAPHY pexels-shkrabaanthony

Thanks to technology, the world has changed. Half a century ago, it would have taken several hours to see an image taken with a camera, but it would only take a second today. These technological advancements have also influenced how we spend online and what motivates us to spend. This article explores how our spending behavior has changed over the years and what technological factors have influenced it.

How online spending evolved over the years

The start of the dot-com boom saw users become comfortable using the Internet to pay for goods and services. It had limited adoption initially because most internet users didn’t want to reveal their financial information online. The successes of e-commerce giants like eBay and Amazon in the early 2000s made more people interested in online spending. The rise of social media platforms and influencer marketing has also altered this behavior. Now, over 75% of online buyers rely on social media communities for advice on what to buy.

How technological advancements changed customer’s behavior

The first point to consider is the desire for speed and convenience. In the past, it could take a few seconds to send a block of text across a channel, but thanks to 4G and 5G technology, it takes only milliseconds. This has subtly implanted a quick response expectation during purchase. It has also influenced how convenient buyers want their interaction with a business to be, as they can now easily resolve their complaints and access customer support.

Another point to note is the expectation of consistency across all platforms. Most online buyers have access to websites, social media platforms, and mobile apps. If a business’s branding is not consistent across these platforms, you are likely not to trust or buy from it.

Some decades ago, you could see an ad for the first time on TV and decide to make a purchase. Today, you are likely to buy from brands that have first built some level of connection with you through value sharing and trust. This connection is usually built through user-generated content such as reviews, social proof, ethical standards, and the brand’s pricing and product information transparency.

Personalization is the new trend in the online marketplace, which is why you will most likely see ads that interest you online. Today’s online consumer is seeking customized experiences tailored to their preferences. This is not to mention the influence of social media platforms, which have evolved from just connection points to virtual marketplaces.

Key technologies influencing online spending behavior

Digital Payment Gateways

This is arguably the most influential factor affecting how we spend online. Rather than take a walk or a drive to an eatery, you can simply make payments online and have your food delivered to your doorstep. Thanks to debit cards and credit cards, we can now enjoy the convenience of online transactions. Also, the advent of digital wallets like Google Pay and Apple Pay eased the hassles of checkout processes, making it easier for consumers to shop. This is not to forget the impact of blockchain technology. Due to the decentralization feature of cryptocurrencies, cross-border payment has become easier and faster.

The possibility of online payments has also introduced new industries, such as online gambling. Players no longer need to visit physical gambling locations to wager on their favorite casino games or bet on their favourite sports teams. The rise of digital transactions and instant bank transfers has been a game-changer for this industry. Players can now make instant deposits and withdrawals. In a notable shift, review sites such as BetKiwi are streamlining the experience by featuring instant bank transfer casinos, ensuring that deposits and withdrawals are processed quickly and without unnecessary delays. This provides a convenient and secure way to manage funds, making the overall experience faster and more reliable.

Widespread use of mobile devices

There are billions of mobile devices in circulation today, and many businesses wasted no time finding ways to be in people’s faces. Thanks to shopping mobile apps and web apps, online users can buy on the go or at any time or place. Data shows that in 2023, over $2.2 trillion in sales were generated from mobile shopping. The data revealed over 60% of internet sales that year came from mobile devices.

While many argue that mobile banking apps have made it easy for bank holders to spend money, others believe that managing money has become easier with budgeting and finance tracking mobile applications.

Artificial Intelligence

Companies understand that the modern customer is seeking personalized experiences. This is why they employ AI’s predictive analysis, extensive browser history research, and automated chatbots to help these businesses offer prices and products that meet the customers’ needs and help them resolve any challenge in finding a product. What happens is that machine learning sources comb the internet space for the user’s search history and past activities and suggest to the company what the user might likely buy. Also, AI offers automated customer support that provides instant responses to customer inquiries and queries.

BNPL Services

These Buy Now, Pay Later services employ special technology to help online users make purchases and pay in installments. AfterPay and Klarna are examples of these services, and they have made it easier for users to acquire products they may not have been able to pay for at once. While this technology works, it is often believed to encourage impulse spending, and if not well managed, it can lead to excessive debt accumulation.

Advancement in Online Security

In the early years of online transactions, most users feared divulging their financial details for fear of identity theft and fraudulent activities. Their concerns are as valid today as they were then, but thanks to advancements in cybersecurity, more users feel safer now. Some of these technologies include biometric authentication, which ensures that only your fingerprint or facial recognition can initiate a transaction, and two-factor authentication, which provides an extra layer of protection beyond passwords. This notwithstanding, you must also keep your guard against phishing scams, formjacking, and other online scams.

What to expect in the future

Technology has clearly shaped how we spend online, and additional advancements are expected to further influence our behavior. We could see the increase of AI-powered assistants who shop online, just as one would need an assistant in a physical mall. These assistants would provide personalized recommendations and possibly automated purchases.

We could see the use of virtual reality (VR) and augmented reality (AR) in the furniture and clothing industry. With this, customers can preview how they would look in a dress or how a piece of furniture would appear in a room before it is delivered to their location. We could also see a wider adoption of blockchain transactions, which propose to offer secure and transparent transactions.