Friday, January 18, 2019
Ingenico Group launched a new gateway Dec. 11, 2018, designed to help Russian acquirers simplify and enhance online transactions. The gateway will enable participating acquirers and banks to reduce cross-border transaction fees, simplify compliance and improve access to Russian ecommerce markets, Ingenico representatives stated. Russian ecommerce spend was more than $32 billion in 2018, with an annual growth rate of 17 percent.
Gabriel de Montessus, senior vice president global online (Retail BU) for Ingenico Group, said payment processing in Russia has been expensive and time-consuming. Merchants have relied on offshore acquiring banks and required local legal representation, which is both expensive and time-consuming, he stated.
"International merchants can now reach Russian consumers that were previously inaccessible unless they completed complicated and costly [authorization] and legal processes," de Montessus said. "Our merchants will enjoy higher approval rates and lower fraud risk thanks to transparent and direct processing with the top Russian acquiring banks."
He additionally noted that merchants who sell goods in Russia must comply with local data regulations, which mandate storing personal data in local data centers. "We're carefully monitoring the fast-changing environment to ensure payment practices run smoothly and securely, keeping merchants compliant while they grow their sales," he said.
An ACI Worldwide report titled How ISOs Can Turn the Five Major eCommerce Challenges to Opportunities cited five top challenges in international ecommerce. Researchers noted that outsourcing to a payment provider or connecting to an existing modular payment gateway can "'switch on' alternative payments as and when needed—to achieve rapid global expansion."
Mike Goodenough, head of strategic initiatives at Ingenico Group, identified soaring international fees as another impediment to international commerce growth. Card scheme network fees "have been growing yearly," he stated. "In April 2018, Visa added a new $0.0425 fee per international transaction."
Goodenough provided the following examples of how Ingenico's gateway solution solves the top five challenges cited in ACI's report:
Goodenough described the Ingenico gateway as a truly domestic solution that limits drop-off because it enables merchants to operate as if they were Russian merchants. He said that during the initial launch, Ingenico will be targeting enterprise merchants with a focus on travel, digital and retail. "By having the options with banks – and we're in discussions with more – we're able to really optimize the card traffic of our merchants," he said.
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