Payvision card processing profitable cross border payments 2013
CNP EXPO Payvision on Expanding from the US to global markets
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Transcript of CNP EXPO Payvision on Expanding from the US to global markets
EXPANDING FROM THE USTO GLOBAL MARKETS
19th of May, 2014
CNP EXPO | Orlando, Florida
Joe Emig |VP Global Business Development, International Acquiring Payvision
“s-commerce”: 1500’s
• Ships. Advances in shipbuilding technology opened up the world for exploration and commercial activities that never existed before.
New trade partners New currency markets New goods and services New global relationships
• This led to the creation of new political empires and major world economies which still exist today.
State of e-commerce today
• 20 years after the “dot com boom”, e-commerce is just starting to explode
• Global e-commerce has been growing at a rate of 19% per year, with many markets experiencing triple-digits growth
• By 2015, global e-commerce sales will exceed $1.4 Trillion
State of e-commerce today
E-commerce is the new normal
Identifying the “hot” markets for e-commerce
• Early e-commerce markets have matured, but this does not mean that the “gold rush” is over. Mature e-commerce markets are ripe for commercialization due to
their established e-commerce infrastructures, incubated technologies that have flourished amidst market forces, and a developed e-commerce purchasing culture.
For example, in the USA we see a robust population with internet access and a rapidly-increasing percentage using mobile devices for e-commerce activities.
• In the UK, we see similarly high percentages of internet penetration and mobile device-enabled e-commerce activity.
Identifying the “hot” markets for e-commerce
• Surprisingly, we see similar e-commerce growth in evolving markets which do not have the same established infrastructure and technology base as the mature markets:
“There is a remarkable consistency in e-consumer purchase behavior across all territories and demographics, whether
consumers live in a mature, developed, or developing market. Consumers are becoming experts in multi-channel shopping,
buying across a great variety of retail, product categories online. Online shoppers will ultimately select those online
retailers with a good online reputation, a user-friendly website, and fast, reliable, and free delivery.”
Payvision report: Profitable Cross-Border E-Commerce Industries 2013
Identifying the “hot” markets for e-commerce
What about the BRIC countries?
• Brazil: Massive internet penetration, rapidly-expanding e-commerce culture, developing “dot com” mentality.
Cautions: challenging banking and regulatory environment for merchants recent governmental restrictions on international DCC transactionsGrade: B
• Russia: Massive internet penetration, advantageous proximity to established e-commerce regions (Western Europe, Asia Pacific)
Cautions: disproportionate frequency of fraud, lack of established cross-border acquiring programs, lack of adoption for e-commerce by card issuers.Grade: C
• India: Enormous potential population for e-commerce, lack of domestic e-commerce development means an untapped marketplace for global merchants, booming technology sector with rapid adoption of global tools .expanding consumer base with purchasing power.
Cautions: Inexperienced merchant base and underdeveloped card-issuing programs make it difficult to fully tap into the market.Grade: B+
Identifying the “hot” markets for e-commerce
• China: Enormous potential population for e-commerce, massive internet penetration, developed technology infrastructure, established card-issuing programs, expanding consumer base with purchasing power
Cautions: Language barrier inhibits western e-commerce providers from accessing the market, significant governmental/regulator schemes create difficulty for cross-border interactivity and logistics. Grade: B+
• Other “hot” markets: Japan, Taiwan, South Korea, Malaysia, Mexico, Chile, Argentina, Australia
E-commerce logistics
• A business plan can be very sophisticated, but at the end of the day a merchant cares about one thing above any other: getting paid.
Engage with a payments processor that has experience in the merchant’s key countries/markets.
Understand the payments landscape of the key markets, i.e. be familiar with local pricing norms and common payment types.
Offer your products/services in the local currency.
• Merchants should establish their business in each market with an image of credibility and competency. If your customers view you as a “tourist” in their market, they will NOT trust you with their business.
Thank you!E-mail: [email protected]