Adobe Rolls Out New Payment Service for Ecommerce Platform

Adobe is rolling out a new payment service for its commerce platform, designed to make it easier for merchants to offer an array of buying options for each transaction. The software giant said its Payment Services for Adobe Commerce will be powered through a partnership with PayPal's own commerce platform and available to stores using Adobe Commerce by the end of the year. The new service will allow Adobe to better compete with ecommerce platform Shopify, a rivalry that began when Adobe acquired Magneto in 2018 in a move that provided the foundation for its current commerce platform. Adobe claims the system will save merchants hassle by gathering transaction data in one place and eliminating the need for multiple logins across platforms. The new service will be able to support major credit and debit cards, as well as PayPal and other services it owns, including Venmo and its new buy now, pay later option. "In today’s fast-moving digital economy, organizations demand flexibility and extensibility in their commerce platform to sustain business growth and deliver seamless experiences for their customers," Amit Ahuja, vp of Adobe Experience Cloud product and strategy, said in a statement. "We’re thrilled to expand on our already robust out-of-the-box commerce feature set to help Adobe Commerce merchants compete effectively and win in the digital-first economy." Fueled by the Pandemic, Buy Now, Pay Later Is Reaching an Inflection Point Shopify added its own buy now, pay later option through a partnership with Affirm in June. The delayed payments model has been gaining popularity throughout the pandemic—especially among younger consumers—riding a surge in new ecommerce spending. Adobe's own Digital Economy Index survey found the payment method has ballooned in use by 88% compared to 2019 levels. Digital payments as a whole are also becoming more important to retailers as more and more shopping is done online. Recent reports have shown the pandemic-fueled surge in ecommerce has supercharged the electronic payments industry. Jordan Jewell, research director of digital commerce at market intelligence firm IDC, said in a statement that Adobe's partnership with PayPal will help it stay abreast of the changes in that fast-growing market, thanks to PayPal's experimentation with tech like cryptocurrency and its forthcoming support for digital currency. "As digital commerce represents a growing share of all transactions, merchants are looking for tools that enable them to drive front-end capabilities and back-end operations of their digital storefronts. Payments is one of those key capabilities that we saw grow in importance over the past 18 months," Jewell said. Payment Services is currently only slated to be available in the United States, but Adobe plans to expand it to Canada, Australia and western Europe next year. How to Capitalize on the Growth of Buy Now, Pay Later