Page 1 - gs140502

May 26, 2014 • Issue 14:05:02

Global acquiring – Part 1

ith projected growth in the U.S. economy
expected to continue at a modest pace, rising
consumer activity elsewhere has prompted
W merchant acquirers to seek new frontiers for
portfolio expansion. In this first article of a two-part series
on international acquiring, The Green Sheet delves into the
markets of Canada and Europe, popular entry points for
payment companies that venture beyond U.S. territories.
Part two will examine the rewards and travails of doing
business in the growth-market BRIC nations of Brazil,
Russia, India and China.
Nearly everyone interviewed for this series agreed that
entry into the international arena revolves around two
precepts: merchant demand for commerce without
boundaries and the extraordinary opportunity to deliver
integrated payments to millions in burgeoning markets.

According to global payments expert Caroline Hometh,
Managing Director of RocketPay Group, payment service
providers have traditionally negotiated to rent bank available who have gone across the globe and negotiated
identification numbers (BINs) outside the United States. acquiring relationships in Canada, Europe, Asia-Pacific,
But the resource allocation necessary to build such Latin America and other regions."
programs requires considerable expertise and payment
volume that far exceeds the scope of many. For larger, well-funded ISOs, firms like RocketPay can
help chart a navigable course. "They have to be willing
"If they're a smaller ISO, they're better off to partner with to become incorporated outside the United States and,
an organization that has done so," Hometh said. "In the in many cases, even have personnel and bank accounts
United States there are maybe a dozen or so companies outside the United States," Hometh said. "They have to
be willing to make the investment of at least six to nine
months before they see any real revenue." Organizations
Contributed articles inside by: must also factor in ongoing travel expenses, which can
add up quickly.
Brandes Elitch ......................................................................................26
Cynthia Bailey.......................................................................................32 While having a physical presence in another region may
Tom Waters and Ben Abel................................................................. 44 not be critical for acquirers with e-commerce merchants
that can be managed remotely through partnerships,
Ken Musante ....................................................................................... 48 anyone boarding brick-and-mortar merchants outside the
Aaron Nasseh ...................................................................................... 50 United States will need local representatives to service
Adam Atlas ............................................................................................53 those accounts. "If you're really focused on point-of-sale,
let's say you want to begin calling on POS merchants in
the U.K., yes, you're going to have to have an office there,"
TOC on page 3
Hometh said.

Continued on page 39