Report: E-commerce merchants increasingly outsource payment solutions

A recent analysis by Riverty regarding the payment strategies of the top 300 e-commerce merchants in Germany and the Netherlands reveals a clear shift toward outsourcing. In 2024, the share of merchants utilizing third-party 'Buy Now, Pay Later' (BNPL) services rose to 65%, compared to 60% the previous year, while the number of merchants managing in-house payment solutions declined.

Consumer demand for flexible payment options is a primary driver for this shift. Data suggests that 70% of shoppers prioritize retailers offering deferred payment terms. Key motivations for users include managing cash flow, avoiding credit card interest, and facilitating the purchase of higher-priced items. The demographic profile is broad, though adoption is notably high among Millennials and Generation Z.

For merchants, the integration of outsourced BNPL solutions has proven effective in performance metrics. According to the report, 57% of retailers noted a reduction in cart abandonment rates, while 46% observed higher average order values (AOV). These benefits are particularly pronounced in the fashion and electronics sectors, which account for significant shares of total online revenue in both surveyed countries.

Market pressures, including rising cyber threats and increasingly complex data regulations, are pushing retailers to reconsider in-house payment systems, which can carry high operational and regulatory costs. Outsourcing allows merchants to maintain a competitive edge while managing financial risks.