Ecommerce has exploded across the globe and hit USD 1.3 trillion at the end of 2014, out of which the mcommerce share was 34%. The globalization of ecommerce is no longer simply a concept that is “coming soon”; rapid advancements in commerce platforms and mobile marketplaces seamlessly bring together buyers and sellers from different regions. As the landscape grows more competitive, businesses continue to look for new ways to drive value and to stand out against a vast backdrop of successful players. Increasingly, the one clear answer is to look across borders.
When visiting London a few months ago for the Global Acquiring Conference, I spoke to payments industry executives about the rapid evolution of mcommerce and ecommerce. As ecommerce continues its explosive growth in the marketplace, seemingly everything has a mobile element to it. These are exciting times for the acquiring business, and during the conference we discussed how to manage the regulatory, technological, and end-user issues in order to make mcommerce the going-forward way of the future.
Regulation and compliance issues
The Payment Services Directive PSD2 is expected to be published in the Official Journal of the EU in December 2015, and everybody is preparing for enhanced requirements related to security and regulations. With globalization in mind, many acquirers from different regions of the world are looking for best practices for creating a global adoption program so that the requirements of the PSD2 can be passported easily. Acquirers envision a single security protocol or single compliance spectrum that will allow them to operate globally in a compliant fashion without undue regulatory burdens from region to region. Learn more about the PSD2 and its impact on the acquiring industry.
In the business-friendly climate of the U.S. merchants operate in a highly unregulated marketplace for commerce compared to Europe. It is no surprise that much of the ecommerce innovation comes from this market where merchants have low barriers of entry and fast access to new markets. Merchants want to expand their geographical footprint rapidly, but for many merchants the complications of expansion into the unknown may outweigh the business opportunities. Thus, working with acquirers around the world and bringing the key solutions providers together to make easy and accessible platforms will be the key for enabling widespread merchant expansion opportunities.
At the Global Acquiring Conference acquirers came together, not as competitors but in cooperation in an effort to truly work together to discuss solutions that will benefit the entire ecommerce ecosystem. Whether it be new innovation, networking, or elevating alternative payments alongside traditional card processing, the Global Acquiring Conference showed us that the acquiring industry understands the power of collaboration on key issues for today and the future.
Merchants’ engagement with globally-focused payments processors
With expansion into new markets, merchants must consider the complexities such as:
- Card scheme regulations across various regions
- Support for local customers including language, currency, and payment methods
- Governmental regulations such as PSD, Code of Conduct, local domicile requirements, taxation, financial authority regimes, etc.
- Optimized integration with payments processors
- Adopting new technologies to reach new markets, customer segments, and payment methods
Engaging with an experienced payments processor helps a merchant navigate these complexities, i.e. building bridges to connect the various complexities into a single functioning payments solution. Payvision is a very nimble acquirer; working with merchants of all sizes and from regions across the world, we have a very good understanding of the ecommerce/mcommerce strategies that lead to success in new markets while accommodating compliance and regulatory requirements. Payvision offers to PSPs and merchants global acquiring with the same quality in each region, offering a single integrated end-to-end solution in different countries, regions, channels and currencies with a refreshing objective: to simplify international merchant processing.
The Global Acquiring Conference showed us that the future is bright. Global ecommerce can be complex but with a good strategy and the right partnerships, merchants can grow their business and continue to thrive.
Interested in learning more about global ecommerce and mcommerce, check out latest report: The Mobile Payments Revolution