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A 2016 survey by global acquirer Local laws and legal conventions loom large for acquirers
and merchants looking to overseas markets. A 2016 survey
Payvision revealed reduced by global acquirer Payvision revealed reduced merchant
merchant enthusiasm for selling to enthusiasm for selling to international customers because
of legal and regulatory hurdles. Nearly half of merchants
international customers because of surveyed by the Amsterdam-based firm identified overseas
legal and regulatory hurdles. Nearly regulation as the biggest hurdle to expansion. "Without a
knowledgeable partner to navigate local legalities and
half of merchants surveyed by the localization, cross-border ecommerce can be a fruitless

Amsterdam-based firm identified exercise," the company noted.
overseas regulation as the biggest Security is key
hurdle to expansion. The revenue pie from mobile money is charting phenomenal
growth. Research and Markets puts the combined global
annual growth rate for mobile wallets at nearly 35 percent
during the previous six months. This compares with an through 2020. "The growing number of mobile Internet
average 43 percent of consumers throughout 26 countries users has encouraged new players to enter the market to
Nielsen surveyed. The most common purchases made provide m-commerce services. This may fuel the growth
using smartphones: food, cited by 71 percent of surveyed of mobile wallets during the forecast period, as users will
consumers; 51 percent used their mobiles to purchase event be able to make instant purchases online," Research and
tickets. Research and Markets expects mobile payment Markets wrote.
transaction volumes to grow at triple-digit rates in China
through at least 2020. There's a potential stumbling block, however: growing
concerns about fraud and data breaches. Nearly three out
Setting up shop in offshore markets is not on the radar at of four (72 percent) of merchants surveyed by Payvision,
many U.S. acquiring organizations. Vantiv, for example, for example, expressed concern about increased risk of data
works with legacy acquirers in local foreign markets breaches and fraud associated with cross-border payments.
to facilitate cross-border payments for its U.S.-based
ecommerce clients. Cross-border sales are on the rise for And it's not just merchants. An Aite Group LLC survey
all ecommerce firms and will account for 15 percent of all of consumers in 20 countries shows fewer than half
online sales by 2021, up from 12 percent in 2015, according are confident the companies they do business with are
to Forrester Research Inc. China's share of the online cross- protecting their financial/transaction information. In only
border market is expected to grow from 27 percent in 2015 three countries – the U.S. (at 54 percent), India (60 percent)
to 40 percent in 2021.
and Thailand (51 percent) do a majority of consumers
express confidence their stored data is well-protected.
"Merchants are increasingly looking for a single processor
for their global needs," Gupta said. "We made a strategic The confidence expressed by Americans is noteworthy,
decision that we were not going to be able to meet the since in 2016, Mexico, Brazil and the United States topped
global needs of customers without good backend acquiring the list of countries where card fraud was most prevalent.
partners."
European countries saw the lowest fraud rates, according
to Aite. Meanwhile, 65 percent of consumers said they
Each national market has unique regulatory and technology would stop shopping at a business responsible for fraud or
requirements, customer demands, and established breached data. Andreas Suma, Vice President and Global
companies with scale and the appropriate licenses. These Lead, Fraud and Data at ACI Worldwide, which sponsored
are the partners a U.S. acquirer must seek in new markets, the Aite survey, described the results as "a further wakeup
Gupta noted. "One thing we can leverage is that we know call to the broader payments industry" to do a better job of
the right questions to ask when conducting due diligence," educating consumers on how their data is being secured.
he said.
Consumers want the ability to proactively manage fraud
Last year Vantiv partnered with PPRO Group, a London and "overwhelmingly" prefer to do so using their mobiles,
firm that will allow Vantiv's ecommerce merchants to Aite found. Seventy-five percent of respondents said they
accept noncard payment methods unique to buyers' home were very interested in receiving fraud alerts via a call
countries. Payment schemes supported include direct debits, or SMS to their mobile devices. "This willingness opens
bank transfers, cash-based e-payments and mobile wallets. opportunities for financial institutions to optimize the ways
"We understand the importance of offering alternative in which they reach out and communicate with consumers,
payment methods, which in some regions account for 30 ultimately improving customer experience while reducing
percent or more of all online spending," said Sayid Shabeer, operational costs and fraud losses," said Aite Senior Analyst
Vice President of Merchant Product at Vantiv.
Shirley Inscoe.

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