As Vice President for Global Compliance at Payvision, I would like to share my views on the challenges E-payments & M-payments providers may face when operating in the cross-border ecommerce space. The current regulatory landscape is quite fragmented and lacks consistency, due to the many sources of regulations and the domestic approach by which regulation is applied in different regions and under different local legislation. Hence, the providers of e-payments and m-payments see themselves more and more confused by the existing compliance framework.
The context underlying this complexity, the issues this entails and the solutions that should be considered in order to simplify it.
There are security requirements that conflict with certain legal or regulatory instruments. For instance, there are inconsistencies between certain SecuRe Pay Forum Recommendations for the Security of Internet Payments (that pose a huge burden in terms of data exchange for investigating and preventing security threats) and privacy laws. So co-operation between authorities themselves and between authorities and the industry will likely help to mitigate this problem.
And most importantly, in the cross-border ecommerce space these two new payment channels imply more players and business models involved in the value chain, as well as constant technological innovation. Therefore, the current regulations hardly keep up to speed with all the innovative products that have flooded the market lately. To make the most of the enormous growth potential that e-payments and m-payments channels have, my overall advice is to simplify this compliance framework as much as possible, mirroring all the stakeholders involved, and their place in the value chain. This can be seen as more of an opportunity than a challenge, since it might be a win-win deal for all the parties involved. On the one hand the regulators would have the opportunity to shape a richer framework, covering all the possible features of a complex scenario, with the many interests and situations involved. On the other hand the businesses in scope might be able to enjoy a feasible framework that caters for practical future scenarios that they might encounter when conducting cross-border ecommerce transactions.
I have also explained the challenges & opportunities for the consumers of e-payments and m-payments from a compliance point of view, as well as the competition issues faced by the providers of these new payment channels.