Online Retail Payments in Cross-Border E-Commerce
Cross-border C2B e-commerce accounts for 6% of total online sales in the US, 10% in Western Europe, and less than 1% in Japan. Celent urges US merchants and their payment services providers to broaden the payment methods made available to foreign shoppers in order to increase cross-border sales.
In a new report, " ," Celent analyzes the state of payment acceptance in a cross-border e-commerce context.
Payments are still a major liability in US merchants decisions to conduct cross-border sales. According to the report, US payment services providers will have to expand beyond plastic to trigger cross-border sales. In the process, they will be challenged to adapt their card-centric business models to a non-card environment.
Cross-border sales account for an important share of US online merchants sales, up to 20% of total sales in some cases. The development of local web sites does not make supporting cross-border sales less important. Meanwhile, cross-border e-commerce still faces significant barriers, particularly with payments. In addition to supporting better fraud management, US payment services providers should encourage merchants to expand the payment options available to foreign shoppers. The first step in that direction should be to accept foreign ACH credit and debit payments, which are popular overseas.
"Put in perspective, the question of ACH acceptance in cross-border e-commerce is very representative of the more general issues facing the US payment industry"
comments Gwenn Bézard, Celent Senior Analyst and author of the report. Cross-border e-commerce payments issues relate to broader challenges in the US payment industry such as the need for more flexible payment methods online, the pressure on payment services providers to make distinct payment systems converge, the need for integration of domestic ACH payment systems worldwide, and the need for the US payment industry to take foreign markets into account.
The 33-page report contains 18 figures and 3 tables.
A is available online.
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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
|New York, NY, USA June 10, 2003|
Online Retail Payments
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