Political instability has damaged merchants’ appetite for cross-border selling
Payvision publishes results of industry’s biggest cross-border ecommerce survey
AMSTERDAM, THE NETHERLANDS–(Marketwired – Dec 13, 2016) – Payvision, an award-winning global acquirer and data-driven omnichannel solutions provider, has released the results of its annual global cross-border ecommerce survey, revealing merchants’ reduced enthusiasm for selling into international markets. After tracking three years of solid growth, cross-border ecommerce uptake by respondents to Payvision’s 2016 edition of this global survey is flat.
This waning appetite for cross-border ecommerce by merchants links directly to the unstable political and economic landscape in 2016. This includes a complicated UK extraction from the EU, a downturn in the Chinese economy, and a controversial presidential election campaign in the US, implying future tariffs on US trade with China and the withdrawal of the US from the TTP.
Merchants confessed they are unclear but concerned about the implications of this current instability. They report, as a consequence, more preference for doing cross-border business with consumers of shared languages and cultures this year, deeming other markets to be riskier. This is despite the increasing influence of the millennial, global consumer.
“The omnichannel consumer mindset is quite the opposite of merchants’,” explains Gijs op de Weegh, Chief Operating Officer at Payvision. “Consider Alibaba’s Singles’ Day, the largest revenue-driving ecommerce day in the world. This year, it generated nearly $18 billion in sales in China, and almost a third of this was driven by foreign purchases. With a maturing set of millennial consumers, with more and more disposable income, the modern shopper is no longer domestic or cross-border, neither mobile nor in-store, they are everywhere.”
Merchants agreed that modern consumers are always connected, shopping on their own terms, through multiple channels. So, when asked about omnichannel capabilities, 55% of respondents answered that they currently offer omnichannel retail and a further 41% plan to offer it in the near future.
Despite catering to this global, omnichannel shopper, merchants are still warier of selling cross-border than in previous years. This could be explained, in part, by the hurdles that merchants are facing when expanding into new markets. According to the survey, almost 50% of merchants find overseas regulation the biggest pain point, despite governmental efforts to lower barriers to entry in key markets such as China. Without a knowledgeable partner to navigate local legalities and localization, cross-border ecommerce can be a fruitless exercise.
The survey also revealed the growth of mobile commerce as the biggest game changer to cross-border trade for the third year running, selected by over 24%.
Payvision’s fourth annual cross-border ecommerce includes in-depth cross-border data, online payment preferences and trends in over 30 markets, establishing itself as the most thorough report on global cross-border ecommerce available. Download your free copy of the report.
Awarded with “Best Acquirer” at MPE Berlin 2016 and ‘Best Merchant Acquirer/Processor’ at the 2015 Payments Awards, Payvision is one of the fastest-growing global acquiring networks in the world. In the last decade, Payvision has independently built an international acquiring network connecting banks, PSPs, ISOs and their global merchants in the USA, Europe, Asia and the Pacific. Payvision simplifies the complexity of cross-border ecommerce through a single, highly secure payment processing platform for all transactions processed worldwide, with domestic processing, a next-generation reporting interface, and a solid risk management solution.
Together with its subsidiary company, Acapture – a new, scalable, data-driven PSP, Payvision combines the experience of an industry leader and the flexibility and speed of a start-up, transforming itself into a data-driven omnichannel enterprise. Payvision and Acapture maximize the revenues of merchants and help them grow their business globally through a data-driven omnichannel approach, a complete and reliable payment platform, and a single REST API integration.
Payvision is headquartered in Amsterdam and, over the past decade, the company has expanded its geographical footprint in over 40 countries with offices in New York, Utah, San Francisco, Madrid, London, Toronto, Singapore, Tokyo, Hong Kong, Macau, and Auckland. For more information about Payvision, please check www.payvision.com and follow us on: Twitter @payvision, LinkedIn, Facebook, YouTube, and Corporate blog.
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