PSPs are Adapting to Cross-Border E-Commerce

This month, Credorax has been spotlighted by PaymentEye to share its wisdom on cross-border ecommerce’s effect on PSPs. Below are a few important takeaways from the article we thought you would enjoy. To read the full article, visit: www.paymenteye.com.

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Retail Sales, All-Time HighPicture1

Retail sales worldwide are at an all-time high. According to data from eMarketer, total retail sales hit $22 trillion worldwide in 2016, up 6% over 2015. That figure is estimated to exceed $27 trillion by 2020 (excluding travel, event ticket and restaurant sales).

Retail sales are growing too – although the growth rate is predicted to peak at 6.3% in 2017, trending downwards towards the end of the 2010s, the market is expected to deliver strong numbers over the next five years.

Ecommerce Makes up Majority of Growth

Although overall growtPicture2h is slowing in line with the rest of the retail market, ecommerce is predicted to make up an increasingly large proportion of total retail sales.

Accounting for 7.4% of that total in 2015, retail ecommerce sales across all devices will reach $2.3 trillion worldwide in 2017, rising to a whopping $4 trillion by 2020 (representing 14.6% of total retail sales).

This should come as no surprise, as over half of all internet users worldwide – more than 24 percent of the global population – made at least one purchase via a digital channel in 2015.

Cross-Border, Heart of Ecommerce Growth

A growing proportion of this trade is cross-border. As tech advances make it easier for merchants to market to customers beyond their domestic borders, the pressure for merchant acquirers to deliver fast, secure and cost-efficient cross-border payments is higher than ever.

DHL Express reports cross-border sales volumes are predicted to increase at an annual average rate of 25% – from $300 billion to $900 billion – between 2015 and 2020.

PSPs Need to Support Cross-Border for Merchants

PSPs should be able to service the cross-border needs of their merchants if they are to stay competitive. Merchants now expect to pay least-cost routing and local fees for cross-border transactions at minimum. PSPs must have in-depth knowledge of regional preferences and compliance regulations. In addition, merchants expect the lowest costs and transparent pricing models as standard. While an acquirer can’t solve every cross-border issue that arises, selecting the right one can definitely enable their cross-border goals.

Acquirer Checklist: The Essentials Every PSP Should Look For

  • Cross-border reliability: seamless connection of the PSP’s merchants to cross-border
  • Knowledge of cross-border commerce: an understanding of regional preferences, rules, and new regulations.
  • Currency capability: ability to handle multiple currencies and provide the lowest domestic rates for cross-border e- and m-commerce transactions.
  • Multi-device: full cross-channel international sales, enabling merchants to connect and sell to customers on every type of device – especially mobile.
  • Risk protection: ecommerce risk and fraud should be safeguarded against risks, and the latest threats to mobile commerce understood.
  • Flexibility: support a wide range of payment methods and ability to deliver an updated service in response to new market trends.

The cross-border ecommerce market provides a unique opportunity for PSPs to move beyond their traditional roles by providing cross-border options for their merchants, but partnering with the right merchant acquirer must be the first step.

To learn more about selecting the right merchant acquirer, download PSPs: Why Does Your Choice of Acquirer Determine Future Success at Paymenteye.com here.

 

Keys to Cross-Border Success for Merchants

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Are you watching the world grow more connected before your eyes? It’s only natural that online merchants see this growth as an opportunity. Increasingly, it is becoming vitally important that online merchants be fully prepared to sell not only “locally” but also to reach into cross-border commerce. PYMNTS.com has been studying factors that separate the most successful cross-border merchants from the rest of the pack.  They recently published their quarterly index, which not only shares recent news but also compares 2016 to previous years.

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Advancements in Tech Signal a Boom for Cross-Border Payments

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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.

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Top 5 Smart Acquiring Blog Posts of 2015

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Christmas has come and gone, and New Year’s is fast approaching. Last week, in our Happy Holidays post, we took a look at our major achievements over the last year. This week we bring you the top five blog posts of the year.Continue Reading

EPA Awards Credorax Merchant Acquirer of the Year

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Last month’s Emerging Payments Awards in London was truly a night to remember for Credorax. We took home awards for both Merchant Acquirer of the Year and Best Emerging Payments Marketing Campaign of the Year. We are honored to have been recognized for the hard work we put into serving payment service providers and clients around the world.Continue Reading

Insights From the European Commission E-Commerce Report

 

European Union financial concept image with euro symbol, sign and icon on a laptop computer key with EU flag for blog, website and online business.


A recent European Commission report on the state of e-commerce offers some great insights on how consumers and merchants are dealing with cross-border e-commerce payments.

Here are some highlights of the EC Digital Agenda Scorecard:Continue Reading

Real-Time Payments: When a Moment Makes All the Difference

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Real-time payments have been a significant goal of the industry for some time, and they are fast becoming a reality. As we approach this innovation milestone, it’s worth taking a step back and trying to understand more about what real-time payments mean and their potential impact on e-commerce.Continue Reading

China’s PBOC Keeps Visa and MasterCard in Limbo

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The decision to open up Chinese bank card payment clearing market, which came into effect on June 1, 2015, follows, to a certain extent, a complaint the U.S. filed with the World Trade Organization in 2012. The U.S. argued that, per WTO rules, member countries of the organization should treat foreign credit and debit card issuers on par with domestic issuers and therefore required the Chinese government to open up the market for “bank clearing services” to foreign and domestically-invested companies incorporated in PRC. In addition, the PBOC will allow banks in China to issue Visa and MasterCard payment cards independently of UnionPay.Continue Reading

5 Ways to Optimize Your Site for Cross-Border E-Commerce

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PYMNTS.com recently released their latest quarterly X-Border Payments Optimization Index, and it’s chock-full of fascinating information about the state of global cross-border payments today.

As we all know, cross-border e-commerce is the present and future of global commerce. If you have a website for your business, you have the opportunity to reach billions of customers worldwide. The big question remains: Is the average merchant ready and able to serve customers who reside both across the street and on the other side of the world?Continue Reading

MPE Takeaways: Apple Pay Soars, EU Merchant Acquiring Trends

 

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This year’s Merchant Payment Ecosystem event was held in Berlin on February 17-19. The emphasis this year was on mPOS, NFC and Bitcoin. There were a number of interesting and educational sessions on a variety of issues facing the payments industry.Continue Reading