Last week the Credorax team participated in the wildly successful Money20/20 conference. The Credoraxeers from the US, EU, China and Israel, together with our partners, Arvato Financial Solutions and Dimebox, met for three days of networking and learning about the international payments ecosystem. The Credorax team gained a lot of insight into exciting industry developments. We asked a few of the team members to share their impressions of Money20/20 and what they viewed as important takeaways from this year’s conference.
Gearing up for Money2020 Vegas, we decided to publish information about our tools and services in an easy-to-read format, so that our current and future customers can readily understand what we do and why it is so important for the borderless economy. E-commerce is growing rapidly, and in 2015 cross-border e-commerce represented about one-fifth ($304 billion) of all transactions! It is vital for merchants to have a seamless and streamlined acquiring bank they can trust to provide superior security, functionality and customer service.Continue Reading
Meet Paul and Veronica. Both are smart, ambitious, and a few years out of university. Despite their degrees, neither has managed to land the kind of job they were hoping to. Additionally, thanks to a tight job market and rising housing prices, they are both still living with their parents. Are Paul and Veronica doomed to a life of sitting on the sofa watching television and eating pizza all day?
One of the results of today’s ‘tighter’ economy is that it has produced an entrepreneurial spirit in many people, from retired baby boomers to fresh-out-of-university 22-year-olds. In fact, Europe’s 22.3 million SMEs currently account for two-thirds of employment and generate nearly 60% of total value-added (EUR 3.7 trillion).Continue Reading
A panel at Money20/20 tackled some of the big questions in the payments industry, touching specifically on issues relating to cross-border commerce and who is providing value to both merchants and customers.
Moderated by Paul Alfing, of Ecommerce Europe, the panel included:
- Igal Rotem, Credorax – merchant acquiring bank
- Hank Boughner, GlobalPayments – merchant acquiring bank
- Anders la Cour, Saxo Payments – payments division of Saxo Bank
- Christoph Tutsch, ONPEX – white label payment technology for financial firms
All the participants have deep knowledge of payments, technology, and the challenges of cross-country operations. The firms are of varying size and operate in a range of countries, but each has a place in the value chain of making technology work to ease the payment process for clients.
As a FinTech company, we are always happy to see market support for the solutions we provide. We are working to make cross-border payments simple, accessible, quick and safe. The growth of technology and its support of global e-commerce has been fantastic, and we believe that digital payments are a great equalizer. It’s now possible for small businesses to compete in the online space among much larger outfits, capitalizing on the use of digital payments that range from credit cards to e-wallet.
Editor’s note: This is the fourth post in the Credorax Interview Series. You can see the previous interview posts by Smart Acquiring Experts here.
Geert van Maarsseveen is the Senior Sales Director – Commercial Channels at Credorax. With over a decade of experience in the online payments industry, he joined Credorax to help offer customers agility that is not available with traditional or “legacy” acquirers.
It’s impossible to predict the future, but it’s a good idea to keep an eye on trends in the payment industry. New customer-facing technology, regulatory changes and digitization of payments across the globe are having an impact on FinTech. Let’s take a look at a few trends for 2016, as noted by CapGemini.
Although there are increasingly technologically sophisticated ways to pay for goods and services, worldwide, cash payments still win out. Why is this? And what will make electronic payments more attractive?
The ease of using the internet has made the world seem borderless, particularly when it comes to e-commerce. But many consumers incorrectly assume that we are already living in a truly online global marketplace. Can companies buy or sell to customers anywhere in the world via e-commerce or m-commerce channels? Unfortunately, we’re not there yet. Even the largest online marketplaces like eBay and Amazon do not fully support global e-commerce.
As digital payment solutions have become increasingly common, one of the questions that has been raised on numerous industry forums is: Is it time to retire the cumbersome paper and coins we’ve used as legal tender since ancient times?
Cash costs us more than you would first expect. According to a Tufts University report, it costs US households $43 billion a year to deal with cash, taking into account time, fees and theft. For businesses, the costs are even higher: $55 billion, thanks to administrative costs and retail theft. Including government costs of $101 billion, cash costs the U.S. $200 billion a year.
Future Isn’t Bright for Cash
Over the last year, we’ve seen a number of signs that that the transition to a cashless society is accelerating. We discussed this topic last June when we took a closer look at a MasterCard report on our collective progress towards a global cashless economy. As expected, the future still isn’t looking bright for cash.
Last May, the Danish government proposed ending all cash payments. The Central Bank of Ireland stopped manufacturing 1 and 2 cent coins in late 2015. And it looks like Sweden might be the first country to go cashless. As cash falls by the wayside, how can the payments industry create a seamless transition for merchants and customers?
The Omnichannel Imperative
Retail TouchPoints published a whitepaper last year entitled Is Retail Ready for a Cashless Society?, which takes a closer look at the mobile and digital trends influencing this transition. The paper outlines five key elements of this evolution from cash to digital payments:
- The Omnichannel Imperative
- Mobile Payment/Mobile POS
- Digital Wallets
- Digital Currency
- Social Commerce
It’s clear that when it comes to retail, cash is giving way to digital payments. In this vein, omnichannel marketing and payments are pillars of future e-commerce growth. The paper notes that e-retail success depends on meeting customer needs in a seamless fashion across channels. This includes:
- The ability to easily transition between the full range of payment channels
- Multiple payment choices, including credit, debit, gift card and check scanning
- A 360-degree view of customer data across all channels, easily accessible to all employees, from HQ to store managers
A Single Unified Platform
This is very similar to the thinking that led us to develop our e-Power 2.0 platform. Smart Acquiring incorporates a variety of elements that work together to offer a unified and technologically innovative solution: The One Global Payment Platform, ePower 2.0. Credorax built ePower 2.0 as the first single, unified and automated global-domestic acquiring platform. This enables merchants and payment partners to work with one acquirer and one centralized, global payment platform, instead of fragmented and siloed payment solutions dispersed in different locations.
Saying goodbye is hard, but it does look like cash is on its way out. Offering consumers multiple ways to transition to digital payments easily is key for e-commerce success.