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June 9, 2014 • Issue 14:06:01

Global acquiring – Part 2

he acronym BRIC was originally coined by
Goldman Sachs economist Jim O'Neill in a 2001
article in which he identified the countries of
T Brazil, Russia, India and China as having the
greatest potential for economic growth. In 2010, South
Africa was added at the behest of China making BRICS
the new acronym. This article explores the original four
and shares perspectives from payment pioneers in each
region.

Disparate in many ways, the BRIC countries exhibit a
growing sense of unity and cooperation, as evidenced
by initiatives set forth in annual summit meetings held
jointly by this group since 2009. Collectively, these
countries represent an estimated three billion people and
$14 trillion in gross domestic product.

As the BRIC countries hop onto the technology
bandwagon, alternative payments are gaining on
traditional card payments, especially online. A WorldPay
Inc. study Your Global Guide to Alternative Payments (Second He added that from a market sizing perspective, Russia is
Edition), predicted that by 2017, alternative payments will not growing as much as Brazil, China and India. "It's only
surpass card payments for online purchases by a margin 140 million people, whereas China is 1.5 billion, India is
of 59 percent to 41 percent, and e-wallets will equal cards 1.2 billion and Brazil is slightly smaller than the U.S. in
in popularity as payment methods at 41 percent apiece in terms of population," he said.
global market share.
One company working to bridge alternative payments
Industry insiders have observed that Russia's payment globally is Munich, Germany-based Pay.On AG, which
systems are advanced by today's standards. "They're big now has an office in New York. "Clients engage with our
admirers of technology options coming from the U.S., systems either as a fully hosted, white-labeled global
and their banks are very savvy," said Pradeep Moudgal, payments platform or as a gateway-to-gateway solution
Director, Emerging Technologies Advisory Service at integrated to their existing systems via a single proprietary
Mercator Advisory Group. "They're actually investing a API [application programming interface]," said Michael
lot of money in payments companies in America." Doron, Managing Director at Pay.On America Inc. He
added that the company accelerates connections to more
than 350 acquirers and payment schemes, including over
Contributed articles inside by: 150 local payment methods across 100 countries.

Tom Waters and Ben Abel................................................................. 44 Waltham, Mass.-based BlueSnap Inc. supports global
Vicki M.Daughdrill ............................................................................. 48 connectivity and has several pilot projects underway
with U.S.-based ISOs. "Once you're connected to us you're
Jeff Fortney .......................................................................................... 50 connected to 180 countries, and it's all done through IP
[Internet protocol] recognition," said Ralph Dangelmeier,
TOC on page 3

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