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~ Coffee Corner ~

offee or tea? When and how? outright, through voice commands or the messenger environment.
C Coffee. No sugar. As soon as I start the day. How can Payment Service Providers manage risks for
cross-border e-commerce sellers?
How is the payment market changing? The fraud risk can vary from one market to another, though.
Thanks to external factors such as consumer demand, regulation, Depending on the favoured payment method in any given country,
competition in the industry and the evolution of technology, merchants, payment schemes and consumers take on different levels
payments have quickly turned from an obligatory end-point in the of risk for everything, from fraud and chargebacks to bankruptcy.
shopping journey to the crucial moment to satisfy and encapsulate Some payment methods offer guarantees to everyone in the
the consumer. The checkout is the new make-or-break moment; it’s payment chain and others don’t.
the difference between a customer making it over the finish line or
abandoning their basket altogether. PSPs are able to minimise chargebacks that stem from fraudulent
behaviour by bringing down the chargeback rate and reducing the
It’s a cyclical process, too. Consumers want more versatile ways time and costs associated with managing and challenging them.
to shop, which brings technology into the scene, providing new PSPs also can help minimise false positive fraud alerts, leading
channels for browsing and purchasing – this can include anything to higher approval rates and more sales, and also help reduce
from the desktop to laptop, from smartphone to tablet, wearable operational costs by serving as an extension to a ’s anti-fraud team.
technology to voice technology, and even biometrics – and these are
used in tandem every day. How will this influence online purchases?
A PSP’s risk management is designed to have minimal negative
Along with having greater choice over the channels they use, impacts on online purchases. It is there to supports and customers,
consumers also expect everything about the shopping experience to to streamline the payment process and make it as smooth as
be fast and easy. Whether it is browsing, proceeding to the checkout possible. A good risk management system should optimise payment
or the delivery of an order. In this age of one-click purchases and acceptance, maximise sales conversions and help to drive future
next-day delivery, everything must happen immediately. consumer loyalty.

More businesses are selling across borders than ever be- What will be the biggest burden(s) for digital payments in the task
fore, causing a surge in digital payment innovation. What of being made available to a wide audience?
is the main driving force behind this? Innovations sound great on paper but there are regulations that
A key reason behind the growth of cross-border commerce is come with them that merchants need to be aware of.
merchants’ adoption of localisation tactics. It’s not enough just
being able to ship products to more countries and advertise in new Take Strong Customer Authentication (SCA) which is being
regions, the businesses that expand successfully are the ones that implemented under PSD2, for instance. This regulation will require
understand that there exist varied consumer preferences. customers to authenticate themselves with at least two of the three
following methods on every electronic transaction within the EU:
When it comes to making payments, people stick to the methods • Something they know (e.g. pin)
they know and trust. For example, Visa and Mastercard credit cards • Something they possess (e.g. mobile)
are favored in the UK, but iDeal is preferred in the Netherlands, • Something personal (e.g. fingerprint)
Bancontact in Belgium and Carte Bancaire in France.
While they may seem daunting, it’s important to remember
I advise that merchants do a simple checklist before attempting to that guidelines and protocols aren’t in place to hinder business
expand into new markets: growth. They help to make the industry safer and stronger. By
• Does the merchant have a website in multiple languages? building compliance into plans from the start, consumers will
• Can they offer different currencies depending on the region? trust that a business is operating with their best interests in mind.
• Do they offer the various preferred payment methods? Other challenges include the invisible payments infrastructure
• Is the site optimised for both mobile and computer? behind voice technology, which is required to make the shopping
• Do they work with a Payment Service Provider (PSP) who can experience smooth for customers.
help them achieve cross-border success without the headache?
Do you have any advice for (cross-border) online merchants
How do customers benefit from these innovations? when it comes to online purchases and digital payments?
Consumers can now have a user experience that feels local to them, As well as offering local languages, currencies and payment
no matter where the merchant is located. They have more products methods, I would recommend that businesses offer value-adds,
and services available for purchase, and the ability to search for the like unique products and clear returns policies, to retain customers
cheapest price on whatever device they use. in the long term.

Think about chatbots and voice commerce technology – these were One of the best pieces of advice I can give is to choose a payment
made with the customer in mind. Ready for the modern on-the-go provider who can offer a stable platform capable of sustaining
lifestyle, consumers can easily add items to a shopping list, order them visitors at the busiest of times.

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