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CNP EXPO Payvision on Expanding from the US to global markets


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As eCommerce continues to increase across all retail sectors, new markets become increasingly important for eCommerce merchants. Entering new markets requires careful evaluation of relevant market factors. Successful eCommerce merchants operating in a cross-border model focus on a variety of success factors including streamlined retail offers, efficient product delivery and logistics, consolidated payments processing solutions, and advanced risk and fraud tools.

This presentation will address the important success factors that cross-border eCommerce merchants should consider. US-based merchants have many considerations when entering global markets; ISOs and sales organizations should understand the success factors in order to best advise their clients.

Additionally, the presentation will discuss which international markets have appealing business conditions for US merchants, along with best practices for engaging local resources and established providers in these markets to enable successful payments processing and other key merchant services.

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CNP EXPO Payvision on Expanding from the US to global markets

  1. 1. EXPANDING FROM THE US TO GLOBAL MARKETS 19th of May, 2014 CNP EXPO | Orlando, Florida Joe Emig |VP Global Business Development, International Acquiring Payvision
  2. 2. “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.
  3. 3. 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
  4. 4. State of e-commerce today E-commerce is the new normal
  5. 5. 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.
  6. 6. • 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
  7. 7. • 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
  8. 8. 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 transactions Grade: 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+
  9. 9. 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
  10. 10. 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.
  11. 11. Thank you! E-mail: