by Nga Pham
We’ve just introduced the clickwrap transaction platform (CTP) market today in our research note, The Rise of Clickwrap Transaction Platforms: Act Now or Lose the Battle for Secure eCommerce. You might be wondering what exactly this new technology market is. This blog will cover our market definition and where we see it is headed.
A Digital Economy
The pandemic has turned our economy into a digital economy where technology plays an essential role. Consequently, there has been a surge in demand for online transactions and eCommerce. Transacting business in a fully digital manner involves different types of business contractual relationships. Even though the process of agreeing to a certain set of terms and conditions (T&C) online has been utilized, it has not been managed in a structured manner. In order to create a seamless customer experience, your business should have a rigorous approach to managing T&Cs to ensure that the right terms and conditions are presented for the right products and to the right buyers.
What Are Clickwrap Transaction Platforms?
We have identified a new category that extends the original concept of digital transaction management to more of a complete online digital approach that we are calling clickwrap transaction management. Clickwrap transaction platforms (CTPs) combine the ability to create, deliver, manage, track, and archive all the online terms and conditions that consumers and businesses agree to with a specified entity.
CTPs offer some of the same capabilities as digital transaction management (DTM) but are more focused on online transactions that require advanced content automation, click or signature approvals, and recording and archiving of the actual online transaction. In fact, clickwrap transaction management has the characteristics of both digital transaction management (DTM) and enterprise content management (ECM)–from workflow and content automation to content analytics.
Aragon predicts that the market for clickwrap transaction platforms will grow from 1.5 Billion in 2019 to $15 Billion by 2025. One of the emerging providers of CTP is PactSafe.
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CTPs are poised to assist enterprises with the challenges of managing the legal terms and conditions associated with online transactions.
What Are The Key Benefits Of Clickwrap Transaction Platforms?
The sheer volume of online business combined with the growth of both B2C and B2B commerce has created an urgent need for enterprises to have more capabilities to manage both the quantity and the quality of each type of agreement. As a seller, to avoid disagreement between you and your buyers, you must be able to prove that you offer a certain service with a certain set of terms and conditions. CTPs ensure that the right set of contractual terms are presented at the right time to the specific buyer that is looking for a specific set of services or products. While the focus is often on just the presentation of the terms, it is really the back end system that manages all of these agreements. This system represents some of the most important capabilities that an appraiser needs to evaluate.
CTPs also have the ability to create and, in some cases, automatically generate versions of documents for review and approval. Automated dynamic document generation is an advanced feature that differentiates clickwrap transaction platforms from classic digital transaction management. Instead of long sets of legal terms that confuse your buyers, terms can be simplified with dynamic language that is specific to the transaction.
Download our latest research for a deep dive in key use cases of CTPs >>>
Bottom line
Clickwrap transaction platforms are the proven way to manage all of the terms related to online transactions. It isn’t just about ensuring that the right terms and conditions are online, it is about managing the multiple versions and edits along the way. The sheer growth of online commerce means that many digital transaction management (DTM) providers will want to offer clickwrap capabilities. On the other hand, if your organization depends on eCommerce for business revenue, you shouldn’t wait to take action on this.
Interested in getting started with clickwrap transaction platforms?
You can read our full press release here >>>