PCM Vol.3 Issue 12

The Evolution of eCommerce
PCM: What are the latest payments developments
you are seeing in the eCommerce world?
Daniel: The main developments fall into three key
trends: the rapid digitization of payments; the
expanding role payments providers are playing
in the provision of Big Data; and an intensifying
‘omnichannel’ approach.
The first of these trends - the rapid digitization
of payments - has been driven by two significant
influences. Firstly, an increased consumer
confidence in mobile payments and secondly
a proliferation of new ways to process online
transactions.
We’ve seen the evolution of cash into ‘digital
cash’ formats so that customers can spend
it more easily online, as well as a plethora of
emerging digital payment solutions now on offer.
Gone are the days when the online shopper was
restricted to completing their purchase using a
credit or debit card requiring the backup of a bank
account. Today’s eCommerce environment offers
multiple, alternative digital payment options. These
include the digital cash methods and pre-paid cards;
e-wallets; e-vouchers; virtual account numbers or
single use credit cards; cryptocurrencies; voice
recognition and biometrics and the list goes on
and on. What matters though is not that these
digital payment solutions
now exist, but that customers
across all demographics are
adopting them at a rate of
knots thanks to their flexibility,
added convenience and value
for money. Furthermore, the
newer digital solutions often
offer significantly tighter
security and avoid some of
the most prevalent types of
fraud that can occur when
cards are stolen.
Payment processors can crunch extensive sources of data
rapidly and deliver timely learnings. For example, we’re
now able to assimilate Big Data from across all Paysafe
channels, platforms and geographical locations and
then overlay it with additional external sources, giving
merchants enhanced analytics and insights in areas that
were previously beyond our capabilities.
Through this we can show them exactly what impact every
variable has on their business, not just the conventionally
tracked ones. For example, what impact does the weather
have on sales? These are the sorts of questions we’re
now starting to help our merchants answer.
On the less savoury side, there’s recognition that the Big
Data we can provide also acts as a powerful tool for solving
some of the payments industry’s oldest problems.
Fraud, in particular, becomes much easier to identify
and address with real-time data tools. The combination
of fast, powerful server grids with real-time data
sets and predictive analytics lets us infer fraudulent
behavior literally as it happens, rather than long after
the fact; something that was nearly impossible to do with
yesteryear’s conventional relational database technology.
Using Big Data insights to build, grow and protect
eCommerce businesses is not new, but we’re witnessing
a growing recognition of the value payments partners are
bringing as merchants increasingly lean on us for not just
data, but actionable intelligence.
The second trend is that our
many of our merchant partners
are increasingly leaning on us
for additional Big Data insights.
Expert Interview 15