Wednesday, November 27th, 2019
Global eCommerce is projected to hit a record-breaking 3 trillion by the end of 2019, but studies warn that difficulty in payment processing and fraud security challenges may hamper its growth.
Fraud mitigation remains a growing pain as fraudsters exploit new vulnerabilities and target businesses of all sizes. As for payments, e-merchants engaging in cross-border trade face problems processing transactions in different currencies and matching up to the payment option needs of their foreign markets.
These are according to the findings of a study by an online payment and gateway service, and cybersecurity tech company, Kount & BlueSnap.
The research looked into the North American market and found that its 1000 leading online merchants raked in sales worth $143 billion from cross-border sales (items sold out of the United States). E-commerce giant Amazon accounts for nearly half (44 percent) of all those cross-border sales.
Kount & BlueSnap also looked into the seismic shifts in cross-border e-commerce and noted two major obstacles.
- More than half (60 percent) of the interviewed retailers cite fraud and difficulty processing foreign currencies and forms of payment.
- Another 60 percent also said fraud safety is an obstacle to widespread adoption of cross-border transactions.
But merchants still believe in the power of global online retail. The survey found 67 percent of merchants still see global eCommerce as the next stage of growth in the future. Another 52 percent agree that worldwide eCommerce is appropriate because many brands have international customers.
Fraud must be combatted with impenetrable systems which can be expensive for business looking to deal with overseas customers.
As for processing global payments, merchants should partner with the right merchant account providers who prioritize such services. But providing the favorite payment method for foreign customers will remain a challenge because of different shopper needs and diverse payment regulations.