26
Future of Retail — Payments Innovation
issue 02
“Of the 685mn people in Europe aged 16 and over, 43%, are e-shoppers. Cross-border e-commerce is expected to grow 27%
each year up until 2020, when it will be worth more than €1 trillion.” European B2C E-commerce Report 2016
in-app payments, digital wallets, tokenisation and mobile-optimised payments pages, not just credit and debit cards. If you can’t offer the customer the payment method they want to use, you risk losing their business. Merchants must provide seamless mobile payments online, NFC for low-value purchases in store, and a more well-rounded omnichannel experience. Building this holistic approach to payments brings new challenges and PSPs must ensure they can offer this experience to merchants and their customers.
EXERCISING LOCAL KNOWLEDGE IN INTERNATIONAL EXPANSION Expanding internationally brings its own set of challenges, including local consumer behaviours, banking protocols, shipping preferences, regulations and currency management. In 2015, 16% of all individuals in the EU purchased goods and/or services through the internet from sellers outside their country of residence but within the EU – an increase of 33% compared to 2013. Customers will go wherever they need for more
competitive pricing and a wider range of goods and services. Multinational merchants that can navigate these cultural, regulative and economic nuances will be much better poised to benefit from the $900 billion said to be up for grabs in global e-commerce over the next decade. Asia, for example, will command 39.7% of
e-commerce sales by 2019, despite being home to approximately 900 million people outside the banking system. 34% of global e-commerce sales are made on mobile devices, particularly in Asia, where most people use tablets and phones as their main way of transferring money and buying products. Companies wanting to expand into this territory
need to understand these cultural differences, such as the importance of accepting Alipay, the most popular e-wallet service in China, boasting over 800 million users
and more than 8.5 million transactions per day, as well as Union Pay, used by all of China’s major banks on the country’s only interbank network. Add to this different government-led financial inclusion programs and new local and global FinTech players, and there’s a web of complexity to overcome in order to succeed.
USING DATA TO BENCHMARK PERFORMANCE Navigating the payments landscape is a crucial factor in international expansion, and merchants should look to their PSPs to help them grow. It is no longer enough for PSPs to merely facilitate payments: the standard has evolved to incorporate a new value added service. Payment service providers including Ingenico ePayments have evolved to enable businesses to grow in all directions, offering expert advice that allows you to manoeuvre through regional payments trends. This new standard of PSP has opened up new markets to businesses of all levels, not just enterprise level retailers. From a merchant’s point of view, delivery of this new
service is essential. Business insights on the customer journey can reveal how customers are engaging with you and buying from you. Demand for a multichannel experience is evolving into a more omnichannel experience where customers browse in-store but want to order online for convenience, or they may choose to click- and-collect if they’re not available to receive deliveries. Huge amounts of raw data are of little use without
knowledgeable analysis that focuses on the real business questions. You need to know; how am I performing in a certain country; what is my authorisation rate, and what is my current fraud level? Ingenico ePayments has this knowledge, data and experience in providing actionable insights using its data analytics tool Elevate, helping enable a successful omnichannel offering. Benchmarking this data is critical. Analytical answers to the above questions become truly powerful when
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