With Asia having one of the fastest-growing eCommerce consumer demands in the world, security of client transactions must develop to stay on pace with the rise in eCommerce.
Los Angeles, CA (PRWEB) September 08, 2014
In China alone, there are now 642 million Internet users, a number higher than the number of Internet users in the United States, India and Japan combined. (1) With this massive and emerging market, American eMerchants are quickly learning of the potential that China holds as a group of consumers. Payscout, Inc., a global merchant processing company that specializes in multi-currency processing and managed risk processing, has responded to this growth by partnering with China UnionPay (CUP), the largest bank card issuer in Asia and one of the fastest-growing companies in Asia, in an effort to assist merchants with seamless transaction processing.
eCommerce sales in China were recently reported to be $703 billion, and these sales are expected to grow by at least 64% in 2014 (2); in 2015, China eCommerce sales are projected to jump to $2.8 trillion. (3) However, the opportunity of increased revenue is not the only factor that should be considered by eMerchants wishing to break into this market.
Payscout’s motivating factor to become a member of CUP was to help its clients capitalize on the world’s largest global economy with the largest consumer base, where the growing middle class sociodemographic has increased their desire for U.S. and other foreign goods and services.
“With Asia having one of the fastest-growing eCommerce consumer demands in the world, security of client transactions must develop to stay on pace with the rise in eCommerce,” said Payscout CEO Cleveland Brown.
Financial experts believe that three out of ten bank cards in the world are UnionPay cards. UnionPay uses an “interbank transaction settlement system” that allows for high levels of security for intercontinental transactions.
The dangers of not carefully choosing a merchant service provider can result in legal troubles, as well as excessive fees for the merchant. For example, a merchant that wishes to sell products and services in another country may choose to work with a provider that is not registered with the card associations. This provider may set up the merchant under an aggregate that includes various illegal sales, such as child pornography or drugs. This could result in numerous fines for the merchant, as well as the possibility of a damaged company reputation.
There are a number of other risks associated with selling to emerging markets, as well: (4)
1. Political risks—there may be a more erratic and intrusive style of decision-making by various governments.
2. Uncertain economics—these could include slowing growth, high inflation, and dependence on foreign capital.
3. Rising oil prices—any markets that depend heavily on oil imports would suffer most from this.
In the midst of these risks, there are ways for eMerchants to ensure that they have safe transactions with customers. Payscout and China UnionPay offer services that significantly reduce the possible effects of these risks for eMerchants wishing to move into emerging markets. Through Payscout’s partnership with UnionPay, PIN-based transactions are used. As part of this transaction, the cardholder is connected directly to his/her financial institution to ensure that the transaction is both secure and not fraudulent.
In addition to PIN-based transactions, Payscout recommends considering the following factors when hiring a global merchant service provider: (5)
● Average approval rating—the higher the rating, the better the chances are of a merchant getting an account;
● Monthly cost—low monthly service fees are common among good merchant service processors;
● Initiation cost—high start-up costs are not a sign of good service processors;
● Customer service—quality customer service is crucial for services offered to run smoothly; and
● Internet-based features—since many processors are moving to web-dominated platforms, their virtual terminals must be considered closely.
Payscout’s clients range from SMBs to Enterprise eCommerce companies. For more information about Payscout and its services, visit http://www.payscout.com.
About Payscout, Inc.:
Payscout is a Global Merchant Service Provider (MSP) and Payment Service Provider (PSP) with tier-one bank sponsorships in the United States, Latin America, Caribbean, Asia-Pacific, and Europe. Payscout assists SMBs and Enterprise companies with payment processing solutions for brick-and-mortar and eCommerce transactions. Payscout is one of the few providers with a true Global Payment Solution, encompassing all merchant risk verticals. Payscout is a new generation provider of merchant banking services, specializing in online/eCommerce retailers with a predominant proportion of card-not-present transactions. Payscout’s services are provided on a state-of-the-art, web-based user portal, incorporating expert interaction directly between their highly-trained staff and the customer business owner or senior management. With clients in every state, Payscout serves the credit card processing needs of thousands of businesses, across a multitude of industries. Payscout’s global partnerships include VISA USA, Bank of America Merchant Services, VISA Europe, VISA Latin America, VISA Asia Pacific, MasterCard Worldwide, China Union Pay, Deutsche Bank, First Data and Payscout Brazil. For more information about Payscout, visit http://www.payscout.com.
1. “Internet Users.” Number of (2014). Internet Live Stats, n.d. Web. 19 July 2014.
2. Petronzio, Matt. “China Is Dominating Global Ecommerce Sales, Study Says [CHART].” Mashable. N.p., 03 Feb. 2014. Web. 21 July 2014.
3. Phyneah, Ellyne. “China Aims for $2.8T E-commerce Sales by 2015.” ZDNet. CBS Interactive, 29 Mar. 2012. Web. 21 July 2014.
4. Petroff, Alanna. “Four Risks for Emerging Markets.” The Guardian, 08 July 2014. Web. 21 July 2014.
5. Welling, Mark. “Merchant Services Review 2014 | Best Merchant Account Services | Accept Credit Card Payments—TopTenREVIEWS.” TopTenREVIEWS. N.p., 19 June 2014. Web. 22 July 2014.