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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Mobile Payments: What Might Tip the Scales from Early Adoption to Widespread Use

picture1Editor’s note: Prior to Money20/20 2016 in Las Vegas, we took the opportunity to speak to Rod Katzfey, our Vice President of Sales & Business Development of North America, about mobile payments from the perspective of American business.

What is your opinion of the various mobile payment options available today?

Contrary to popular belief, I believe we have not reached wide-scale adoption for all of the various mobile options on the market today. On the surface, it may seem that 2016 will be the year that mobile payments finally reach global mass adoption. Between the technological advancements developed over the past few years both on the card-not-present and card-present side, such as mPOS, in-app payments, NFC/contactless, combined with the 800-pound gorillas – Apple Pay & Samsung Pay – snatching up partnership deals with retailers and banks across the globe, it appears that mobile has reached a turning point. But I truly believe we are still in the hype vs. reality stage and still awaiting to be embraced wholeheartedly by consumers.

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Do you really agree to the terms of use?

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How many times have you updated your smart phone’s software this year — or even this month? Every time you clicked “I Agree,” you were actually signing an electronic agreement known as a ‘click-through agreement.’

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Should Payments Rank Highest on an Entrepreneur’s E-commerce Priority List?

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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

The Payments Industry is Evolving: What’s Next

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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.

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In a Newly Connected World, Old-Fashioned Cash Still Tops

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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?

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Award-Winning Alliance for Outstanding Results – Wargaming.net’s Success Story

Editor’s note: We are happy to kick off a series of posts dedicated to our clients’ success stories. These case studies will help explain what Credorax does differently in order to help grow our partners and merchants’ businesses. 

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Credorax Success Stories

Wargaming.net, an MMO “free-to-play” online action games giant, provides a great lesson in becoming a global acquirer. Founded in 1998, Wargaming is one of the leaders in the free-to-play massively multiplayer online (MMO) market across PCs, consoles, and mobile devices.

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Are Payments Services the Next Logical Step for Supply Chain Experts?

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Supply chain and logistics companies in today’s market already maintain expertise in several areas, such as logistics, delivery, invoicing and digital services. Recent industry surveys indicate that adding and enhancing e-commerce or payments services as part of the end-to-end solution puzzle, reaching out to these companies’ well-established customer bases, could aid an increasing pinch at the margins of supply chain services.

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The Long Goodbye to Cash

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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.