Payvision has released the annual research paper dubbed “Key Business Drivers and Opportunities in Cross-Border Ecommerce”. The report is the result of a collaborative global survey by CardNotPresent.com and Payvision and it reveals interesting insights on how merchants, PSPs and acquirers believe cross-border ecommerce has changed, their preferred markets for driving growth, which markets hold more challenges, and why.
One of the most remarkable results of the survey is that credit card is the glue that binds the ecommerce markets together. Despite the multiple alternative payment methods in the ecommerce domain, the survey showed that the most commonly preferred online payment method is still credit card. This perspective doesn’t limit expansion prospects to the most established markets. It does, however, highlight exciting opportunities in countries such as Spain, Canada, Brazil, and South Korea, where credit cards were already the preferred payment method. Now is the time to tap into these growing markets.
The report further reveals that the majority of merchants, while more comfortable with cross-border activity than last year, are cautious when it comes to the exotic markets of the East. Most prefer to drive growth through markets where languages and cultures are similar, and infrastructure is developed. While this is sound advice on cross-border expansion, it does reveal a gap in the market. The potential lies in the emerging markets now; Latin America demonstrates considerable potential, but with vast numbers of consumers, minimal competition and recent government schemes, it is the Chinese market opening up the most possibilities for overseas merchants. There is growing confidence in cross-border spending, largely thanks to increased mobile connectivity and m-commerce.
“In established markets, growth rates are slowing down and domestic saturation points are being reached, therefore online merchants are now looking at cross-border ecommerce to drive further business growth. With assistance from international partners, a notion considered to be of utmost importance in international expansion, and the support of a global acquiring network, now is the time to jump these hurdles”, said Rudolf Booker, CEO Payvision.
Key Business Drivers & Opportunities in Cross-Border Ecommerce 2014 is available today as a free download at http://www.payvision.com/cross-border-ecommerce-report-survey-2014 and starting November 12 it will also be translated and available in Chinese.