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CoverStory
Canada is a much smaller market, E-commerce is driving interest in
French is the primary language for about merchant acquiring all over the
globe. In fact, e-commerce growth
20 percent of the population, and PIN debit is now outstrips in-store sales in most
the most common POS card-based transaction. countries. Globally, 22 percent of
disposable income is spent online,
Merchants in Canada also expect more on-site according to a report by Worldpay,
support from their ISOs and acquirers. Are you giving your customers what they
really want?
Credorax, with offices in Boston and London, has been in hot pursuit of According to Worldpay's analysis,
international markets. It has garnered licenses to acquire transactions in 28 annual online spending as a
countries, including all members of the EU. Most recently, the company was percentage of disposable income is
licensed to operate a bank in Japan, making it one of only a handful of outsiders highest in India and China, where
allowed to acquire payments there, according to Benjamin "Benny" Nachman, consumers spend 33 percent and 31
Credorax founder and CEO. percent, respectively, of disposable
income online. Brazil ranks third
"This license is not only a win for Credorax, but one for the entire global online (27 percent) followed by the U.K. (25
payments ecosystem," Nachman said. The company's Smart Acquiring platform percent) and the United States (23
offers a single source for acquiring and processing transactions across borders. percent). In Germany, Argentina and
This eliminates the need for multiple, domestic processing silos, Nachman Mexico consumers spend 21 percent
stated. of disposable income online.
The strategy has attracted investor interest. In the fall of 2014, Credorax reported In addition, Worldpay noted that
it had received $40 million from outside investors, bringing to $100 million the card-not-present (CNP) transactions
total of outside investments in the company, which supports mobile and online are growing at an annual rate of 15
payments exclusively. percent, worldwide, compared to
4 percent growth in card-present
transactions. By 2018, ACI expects
worldwide CNP payments will
number 27 billion.
There is a downside to consider along
with this growth, however: higher
fraud rates. In 2014, online merchant
losses averaged about 0.68 percent of
revenues, according to LexisNexis.
Mike Braatz, Senior Vice President at
ACI, noted that cross-channel fraud
is increasing, too.
Yet, a survey recently commissioned
by ACI and conducted by Forrester
Research Inc. reveals that 54 percent
of retailers in the United States and
Europe have yet to consolidate fraud
management solutions and strategies
across sales channels. Another
mismatch uncovered by the research:
two-thirds of merchants use real-time
rules engines and neural modeling
for card-present transactions; fewer
than half use those tools for online
transactions. "It's clear from our study
that many retailers feel unprepared
to face the fraud challenges of an
omnichannel world," Braatz said.
42
Canada is a much smaller market, E-commerce is driving interest in
French is the primary language for about merchant acquiring all over the
globe. In fact, e-commerce growth
20 percent of the population, and PIN debit is now outstrips in-store sales in most
the most common POS card-based transaction. countries. Globally, 22 percent of
disposable income is spent online,
Merchants in Canada also expect more on-site according to a report by Worldpay,
support from their ISOs and acquirers. Are you giving your customers what they
really want?
Credorax, with offices in Boston and London, has been in hot pursuit of According to Worldpay's analysis,
international markets. It has garnered licenses to acquire transactions in 28 annual online spending as a
countries, including all members of the EU. Most recently, the company was percentage of disposable income is
licensed to operate a bank in Japan, making it one of only a handful of outsiders highest in India and China, where
allowed to acquire payments there, according to Benjamin "Benny" Nachman, consumers spend 33 percent and 31
Credorax founder and CEO. percent, respectively, of disposable
income online. Brazil ranks third
"This license is not only a win for Credorax, but one for the entire global online (27 percent) followed by the U.K. (25
payments ecosystem," Nachman said. The company's Smart Acquiring platform percent) and the United States (23
offers a single source for acquiring and processing transactions across borders. percent). In Germany, Argentina and
This eliminates the need for multiple, domestic processing silos, Nachman Mexico consumers spend 21 percent
stated. of disposable income online.
The strategy has attracted investor interest. In the fall of 2014, Credorax reported In addition, Worldpay noted that
it had received $40 million from outside investors, bringing to $100 million the card-not-present (CNP) transactions
total of outside investments in the company, which supports mobile and online are growing at an annual rate of 15
payments exclusively. percent, worldwide, compared to
4 percent growth in card-present
transactions. By 2018, ACI expects
worldwide CNP payments will
number 27 billion.
There is a downside to consider along
with this growth, however: higher
fraud rates. In 2014, online merchant
losses averaged about 0.68 percent of
revenues, according to LexisNexis.
Mike Braatz, Senior Vice President at
ACI, noted that cross-channel fraud
is increasing, too.
Yet, a survey recently commissioned
by ACI and conducted by Forrester
Research Inc. reveals that 54 percent
of retailers in the United States and
Europe have yet to consolidate fraud
management solutions and strategies
across sales channels. Another
mismatch uncovered by the research:
two-thirds of merchants use real-time
rules engines and neural modeling
for card-present transactions; fewer
than half use those tools for online
transactions. "It's clear from our study
that many retailers feel unprepared
to face the fraud challenges of an
omnichannel world," Braatz said.
42
