Emerging markets

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Benefit from Shared Borders, a Common Language and a Solid Infrastructure


“Emerging markets” often refer to the developing BRIC markets, but it is becoming clear that shared borders, a common language and a solid infrastructure, may prove to be crucial drivers for the emergence of cross-border ecommerce in developed markets.


As ecommerce is transforming the world into one global marketplace, online Merchants, Payment Solution Providers, Card Processors and Acquiring Banks are learning how to collaborate and share critical insight and strategic knowledge in a joint effort to overcome technical and business hurdles, in compliance with international laws and local legislation. Facts and figures prove that online trade becomes truly profitable, once operational challenges are countered.


Brazil’s online B2C sales figures ($16 billion in 2012) represent over half of all Latin American online retail and upcoming World Cup will drive the government to invest in a solid infrastructure, which will become one of the main drivers to boost domestic and global ecommerce in that region.



Cross-border eCommerce Power of shoppers, Emerging Markets


Canada is another great example of an emerging market, as 37% of the world’s cross-border power shoppers live in Canada. The US and Canada share a common language and 75% of Canadians live within 100 miles of US border. 15% of French cross-border shoppers purchased goods from Canadian online retailers, which confirms the fact that language is a key driver. This is even more apparent the European Market, sharing borders and one currency unified in SEPA. Over 75% of German online retailers successfully sell in German-speaking neighboring markets such as Austria, Switzerland and the same accounts for France, whose shoppers and merchants engage in cross-border ecommerce with Switzerland, Belgium and Luxembourg.


Successful online retailers are those, who seize the opportunities in emerging markets, in regions and countries where consumers increasingly shop online, selecting web shops which communicate in a language they understand. Merchants have to be able to offer products and services for competitive prices in multiple currencies, delivered in a reasonable timeframe, for which a solid infrastructure is critical. Online retailers have to partner with international PSPs and ISOs, connected to a global acquirer which makes international online trade domestic, though innovative technology on one secure gateway.


Global transactions are routed to the appropriate issuing bank for credit approval and final settlement, and merchants in different regions are provided with domestic or intraregional interchange pricing- depending on merchant needs- through a network of sponsoring members who are licensed to process and settle transactions in their home regions or countries. Risk managers understand the regulatory landscape and apply the right underwriting protocol and due diligence process before customer acceptance and after boarding.


Leading shipping companies are forecasting a surge in international online retailing, while in emerging markets profitable cross-border ecommerce is expected to account for around 50% of online retail by 2015. Shipping companies are starting to offer additional services such as customs clearance and international warehousing. Common hurdles which refrain online merchants from international expansion include language, currency and regulations. Business opportunities are limitless once e-merchants partner with and independent global card processor, specialized in CNP payments, which connects these retailers with PSPs, ISOs and Acquiring Banks in each region, on one secure payment platform, with the same high quality in each region. A solid infrastructure enable shipping companies to profit from international online trade, by increasing customer satisfaction and consumer loyalty through speedy delivery, ultimately leading to growing cross-border ecommerce sales figures to the benefit of all stakeholders and partners connected in one global acquiring network.


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