Yahoo Finance Adobe (ADBE) Boosts Reach to Merchants With Payment Facility
In a bid to strengthen its presence in the digital commerce space, Adobe ADBE is gearing up to make payment services available on its well-known commerce platform – Adobe Commerce.
Adobe Commerce offers end-to-end commerce service to B2B, B2C and D2C businesses. Payment services that will be added to the platform will be based on PayPal’s PYPL Commerce Platform.
The latest move will help merchants on Adobe Commerce to accept payments via credit and debit cards, PayPal as well as Venmo, seamlessly. They will also be allowed to offer the buy now, pay later solution to their customers.
Further, merchants will be able to track their orders, payments, volume and payment balance with the underlined payment services, which will also equipped with reporting capabilities. This in turn will help merchants in their financial reconciliation. They will also be able to detect errors in order placements and post sales flows.
With the latest move, Adobe strives to offer enhanced digital commerce experience and deliver operational efficiency to merchants on Adobe Commerce. We note that the payment service will aid these merchants in offering secured payment options to their customers.
The company is set to roll out the new payment service in the fourth-quarter 2021 in the United States. It is also planning to launch the same in Canada, Australia and Western Europe, next year.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
More Into the Headlines
The new PayPal-backed payment system will protect merchants from using multiple logins for processing, reconciliation, verification, analysis and extraction of reports, as it will provide access to all payment and transaction data within the Adobe Commerce Admin.
The system will eliminate the merchants’ reliance on third-party payment processors as it will provide access to secured, advanced and up-to-date services.
We believe all these benefits are likely to help Adobe in attracting merchants to its platform, which in turn will bolster the adoption rate of Adobe Commerce.
The latest move positions Adobe well for capitalizing on the growth prospects present in the booming digital commerce market.
According to a report from Statista, transaction value in this particular market is likely to hit $4.2 trillion in 2021. It is expected to reach $5.9 trillion by 2025 by registering a CAGR of 8.8% between 2021 and 2025.
Wrapping Up
By advancing Adobe Commerce with a new payment system, the company will strengthen its Digital Experience segment, which is comprised of Adobe Experience Cloud.
Hence, the latest move is likely to drive growth in the segment in the days ahead.
The move is likely to strengthen the competitive position of Adobe, which carries a Zacks Rank #3 (Hold), against companies like Shopify SHOP, Oracle ORCL and SAP, which are also making strong efforts to strengthen their cloud-based commerce platforms.
You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
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