The Green Sheet Online Edition
May 09, 2011 • Issue 11:05:01
Global opportunities mean global strategies
n increasing number of ISOs and acquirers are asking RocketPay LLC what it takes to build an international payments strategy. I thought an article in which I share some thoughts on the subject would be of interest.
I'll begin by looking at the opportunity. Global e-commerce volume is projected to be $963 billion by 2013. RocketPay projects an approximate 9 percent e-commerce growth for the U.S. market, an 18 percent e-commerce rise for the European market and a 27 percent growth for e-commerce in the Asia Pacific market this year. Most importantly, 43 percent of e-commerce merchants who are not currently selling internationally have indicated they plan to begin international e-commerce sales this year.
It's obvious the global opportunity is significant. To exploit it, a payment business must adapt its technology. Here are two important factors to consider in this regard:
- Card-not-present transactions come in a variety of technology flavors that are commonly called e-commerce (Internet), v-commerce (virtual POS), m-commerce (mobile device) and s-commerce (social media).
- Internet gateways must be multiple currency, have multiple language support, and have connectivity to acquirers worldwide and country-specific payments. Gateways should also have fraud tools, robust reporting and reconciliation, and short message service/email alerts.
Next, a payment business must choose an international acquirer. This selection depends on what region or regions you (and your merchants) want to expand into. It also depends on the kinds of merchants you target. More and more, international acquirers are interested in working only with partners who will bring a balanced portfolio, not just high-risk accounts they want to dump "off shore."
When you work in e-commerce internationally, employ a weighted fraud offering that addresses "friendly" fraud. Use a good chargeback management system that recognizes international acquirers will probably want to work with your merchants directly. And be sure you have chargeback insurance. All of these costs can be charged directly back to merchants.
Additionally, your internal staff, external agents and value-added partners will need training and collateral that will assist in selling new technologies and payment types. Your marketing team will need to alter your websites, social media, presentations and proposals to adapt to new markets. The underwriting and risk team will need to be prepared to assess merchant applications from different parts of the world. And remember that your personnel will have a new process to deal with.
As an industry, we are accustomed to seizing the kind of dynamic new opportunity now evident in international payments. This is what makes us strong and relevant now and will continue to do so in the future.
Caroline (Carrie) Hometh is the Executive Vice President, Sales for RocketPay LLC. She can be reached via email at email@example.com; via office phone at 978-255-3109, wireless at 978-807-5047 and direct at 978-462-3459; via the web at www.rocket-pay.com.
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