Todd Ablowitz, the founder of Double Diamond Group, talked to us during the CNP Expo 2013. As moderator of a dedicated panel on ‘The Rise of PSPs’, Todd shared his thoughts on the role of payment service providers (PSPs) in this growing card-not-present space and the international ecommerce arena.
With the rise of the internet and innovative technology, customers around the world are more connected than ever, while the YouTube Generation lives and organizes its life in the online environment, looking for the massive e-commerce opportunities such as online shopping, entertainment, or information. So every company active in the cross-border ecommerce space finds itself in the realm of growth, hiring employees, adding customers, growing their business and contributing to the rapid development of one global acquiring network. And even though the discussions on fraud are highlighted with increasing frequency, there are more and more solutions for handling fraud-related issues characterizing these cross-border transactions.
In this international ecommerce environment the PSP is a very important model for showing how merchants can be served. Whether in new or existing markets, in any geographical region, the PSP will be a force and will take over the online payments industry, becoming a trusted advisor for any company wanting to conduct cross-border ecommerce. PSPs can provide specific solutions and accurate knowledge related to the exact process and adaptation a company will need to go through if it commits to expand globally, with special emphasis on local factors such as language, traditions, expectations, local legislation and so on.
When considering the main barrier a company might face in attempting to go international, Todd explained that it could take months or years for a company to accumulate all the relationships it needs in order to develop the ability and expertise to conduct profitable cross-border transactions. So finding a way to circumvent the time-lapse gets the online merchant selling faster and making more money more quickly. To achieve this, merchants need to pick the right global partners, such as international PSPs with a global acquiring network that can shorten the lengthy process implied by international expansion.