PCM Vol.3 Issue 12

Blockchain
Valued at USD210 million at the end of 2016, the blockchain
market is expected to soar over the coming years and
hit a valuation of USD2.3 billion by 2021. The key effect
blockchain’s popularity will have on ecommerce is how
simple it makes international online payments. Currently,
the cost of cross-border remittance is between 5% and
20%. With blockchain, this cost is reduced to just 2% or
3%, while also guaranteeing the real time payment. Don’t
miss my latest piece on cryptocurrencies and blockchain.
And yet, properly leveraging payment data requires expertise
and a lot of time. The forward-thinking PSPs put data at the
heart of their solutions for never-before-possible insights that
enhance the customer experience and maximize revenue.
For instance, at Acapture, we specialize in tailoring the
checkout pro-cess to the merchant’s specific industry. This
way, we can ensure merchants accrue as much potentially
valuable data as possible without spamming the target
audience.
Higher authorization rates
The Internet of Things (IoT)
In 2017, it is simply impossible to separate ecommerce
from IoT. 82% of worldwide enterprises express an
interest in IoT, with 23% using an IoT solution of some
kind and a further 29% planning to implement one in the
near-future. From energy
efficiency to quicker
time to market, cleaner
inventory management
and improved productivity,
the potential benefits
of IoT to international
ecommerce merchants are
nearly endless.
3. The transformation
of the payment service
providers (PSP)
To go beyond the initial
role of a PSP to facilitate
a transaction, a retailer’s
PSP can offer crucial
assistance in three
areas. This support
will not only enable the
retailer to grow its business, but also propel the PSP
on the much desired position of a trusted advisor.
Leveraging payment data for a new level of consumer
insight
In the omnichannel era, retailers have an ever increasing
amount of payment data streaming back to them from
various sources – in-store, online, mobile and social.
This massive volume of information is one of the modern
merchant’s most valuable assets to optimize their business.
While consumer technology is making
the buyer more accessible to the
merchant, It is also making the
buyer more demanding, With a greater
expectation for personalized shopping
experiences and flawless logistics.
Transactions are often rejected when one of the banks
involved demands stringent security standards that are
not being met. For example, they might block payments
coming from banks registered in certain countries or use
particularly tight security checks.
So, even though the
consumer is totally
honest, the payment
never reaches the
retailer. Using data
science, we can increase
the chances of every
legitimate transaction
being authorized,
leading to better
authorization rates and
higher revenues.
Locking out fraud
When it comes to fraud,
PSPs perform a delicate
balancing act. Their
platform must be secure
enough to keep the
fraudsters at bay while being flexible enough to accept
as many legitimate transactions as possible. In the past,
PSPs have been overly cautious. For example, they have
blocked the IP address of entire countries where fraud
is prominent, cutting out millions of potential genuine
customers in order to stay protected. Through intensive
data mining we can reduce the chances of false positives.
2017 KEY BUSINESS DRIVERS AND OPPORTUNITIES
IN CROSS-BORDER ECOMMERCE REPORT
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