More alternative payment methods: El Corte Inglés bets on them
Miguel Nicolás
19/01/2023
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El Corte Inglés launches ECI Pay, a payment method that joins the other methods of its platform. Let´s discover its ins and outs.
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The great Spanish platform par excellence is very close to presenting important innovations when it comes to managing the collection of its orders... and those of other partners and associated merchants. Join us to discover what is new at El Corte Inglés in terms of payment methods.
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El Corte Inglés and its transition to multichannel
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El Corte Inglés is an example of how to digitally transform a 100% offline business. It may get it more or less right, but in a retailer of that size it is not easy to see a comparable capacity for reaction and determination when it comes to making decisions outside the channel where they feel strong.Its commitment to eCommerce is not new. For years we have been seeing a certain migration in its business model, adopting, for example, Click and collect -online shopping with in-store pickup-, same-day delivery or its flat-rate shipping in the purest Amazon Prime style. It is even experimenting with cryptocurrencies.Its inspiration is clear: it clearly looks a lot at Amazon. So much so that it has opened its portal to third-party sales, becoming an alternative marketplace to the American giant with a considerable volume of business.
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ECI Pay: El Corte Inglés' latest move
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Everything we mentioned in the previous paragraph has the sole purpose of putting the birth of ECI Pay in context, but also to raise a reflection: if a retailer the size of El Corte Inglés seeks the permanent optimization of its digital ecosystem, shouldn't everyone else do it?Obviously the answer is yes and, no less obviously, it should be done within our niche, size and segment. Not every business can take on Amazon head-to-head.In the case of ECI Pay, it is clear that they have once again been inspired by the company founded by Jeff Bezos. It is a payment method that does not only work internally, but could also be used by other retailers associated with the brand.In that sense, it is much more reminiscent of Amazon Pay or Alipay (the star payment method of AliExpress) than of other alternative payment methods such as Apple Pay or Samsung Pay.
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Is there any point in adding such an option?
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When it comes to checkout, at El Corte Inglés you can already pay by bank card, the El Corte Inglés card (with its financing facilities), Bizum, Paypal... Does it make sense to get involved in such a complicated and expensive development and implementation?Well, the truth is that everything suggests that it is. Why?
- You are expanding the number of alternatives to close the conversion and this, logically, means eliminating a potential stopper for customers who cannot or do not want to be bound to a specific option.
- You manage the entire purchase process vertically, so you are avoiding paying commissions to third parties and the margin is better.
- El Corte Inglés has its own financial services division which, among other things, is responsible for financing and deferring payments. ECI Pay could integrate with this in a straightforward way, prioritizing and streamlining the instalment payment internally.
- It is a business case for offering its alternative payment method to third parties, who, thanks to the good reputation of the El Corte Inglés brand, would benefit from greater authority.
- It is a way to build loyalty with its own customers even when they are shopping outside its physical stores or your eCommerce (in addition to taking a commission on each sale, obviously).
Based on these 5 points, it seems very clear that it makes sense, at least if you are El Corte Inglés; but it also brings a certain added value for third parties and, of course, for the customer.
It is worth reflecting on the customer of this retailer. We all have some very specific profiles in mind: people who prioritize experience, peace of mind and solvency over price. -
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A large part of your target audience, so loyal to retail, was probably hesitant to buy online. Therefore, offering them a payment method with its branding integrated into it is the best way to encourage them to buy through eCommerce. And no one is ruling out the possibility of paying with ECI Pay in physical stores at some point.
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To close we pose you a question: would you use ECI Pay on your online store? Do you think it is worth it or is it a way to generate business to third parties without getting enough revenue? Share your impressions in the comments or on social networks.
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Images: Unsplash.