The ease of using the internet has made the world seem borderless, particularly when it comes to e-commerce. But many consumers incorrectly assume that we are already living in a truly online global marketplace. Can companies buy or sell to customers anywhere in the world via e-commerce or m-commerce channels? Unfortunately, we’re not there yet. Even the largest online marketplaces like eBay and Amazon do not fully support global e-commerce.
Why are we still in the ‘hype’ vs. ‘reality’ phase of global e-commerce? The obstacles preventing a free-flowing world of commerce include regulatory, cultural and technological issues.
- Regulatory: Online merchants in the United States who try to extend their reach into other countries face challenging regulations both at home and abroad. Examples include the EU becoming increasingly strict on Interchange Fees Regulations (IFR) and more stringent cross-border fraud rules that make it harder for U.S. merchants to accept non-U.S. issued cards.
- Cultural: Each country has its own set of cultural and linguistic norms. These issues play an important role when U.S. merchants want to adapt their online selling and marketing strategies and tactics. ‘American’ style sales pitches often do not work outside the U.S.
- Technological: Both Payment Service Providers (PSPs) and merchants experience the constant frustration of having to work with different payment platforms in local countries that cannot integrate or interact with each other in a seamlessly.
Credorax’s Brad Jensen and Vantiv’s Neeraj Gupta made their point on the solutions that industry game-changers, such as Credorax and Vantiv, are putting into place to immediately overcome these obstacles and allow any U.S. merchant, regardless of size, location, or kind of business, to participate in global e-commerce.
ETA Transact 2016 attendees appreciated learning about real life scenarios during the Credorax/Vantiv presentation on choosing a European acquirer. These scenarios really drove the point that choosing the right cross-border acquiring partner can really reduce costs and increase approval rates for merchants. Working with a full-service PSP like Vantiv and a pure-play acquirer like Credorax helps ensure success when US merchants expand into Europe.
– Brad Jensen, Credorax Solutions Architect
For a large processor like Vantiv, choosing the right acquiring partner in Europe was one we had to get right to serve the global needs of our merchant customers. The benefits of local acquiring are clear but the path there is fraught with hurdles unless you pick the right partner. Sharing our methodology—and, in particular, our decision criteria—resonated well with those in attendance.
– Neeraj Gupta, Vantiv Senior Product Manager
To view the full presentation, please click here. If you have any questions, feel free to contact the speakers.
|Neeraj Gupta||Brad Jensen|
|Senior Product Manager||Solutions Architect|
|vantiv||Credorax Bank North America, MALPB USA|