Interview

Enabling borderless ecommerce: Insights from TrustPay

Wednesday 14 February 2024 13:47 CET | Editor: Alin Popa | Interview

Karin Milková, Commercial Director at TrustPay, examines the need for local payment methods in cross-border ecommerce and explores key features that payment providers should have.

 

The concept of ‘borderless ecommerce’ is gaining momentum. Could you share some insights into how a payment provider can enable cross-border transactions and create a good experience for both merchants and customers?

In today’s fast-changing world of online shopping across borders, the idea of ‘borderless ecommerce’ has gained momentum. At TrustPay, we cover all important and popular payment methods within Europe and beyond, and we are constantly expanding our offer and adding new ones. Making it easy for businesses and customers to buy and sell across different countries relies a lot on using payment methods that work well locally.

Local payment methods are key to building trust and making shoppers feel at home, no matter where they’re from. Incorporating these methods – such as Blik in Poland and iDEAL in the Netherlands – is crucial for fostering trust and ensuring a seamless shopping experience for customers. These region-specific payment alternatives are essential for the survival of any ecommerce venture as they hold a more dominant position in the respective countries compared to standard card transactions – making them a critical component for conducting business. By providing these localised payment options alongside conventional credit cards and digital wallets, we can alleviate the complexities associated with international transactions, thereby boosting sales and fostering customer loyalty. Merchants need to make sure that customers can opt for their favourite payment method and improve their conversion. By paying attention to all these things, payment providers can make it much easier for businesses and customers to buy and sell internationally with confidence and ease.

Why are local payment methods crucial for ecommerce merchants operating on a global scale, and how should payment providers assist them in integrating these methods effectively?

In the ever-expanding world of global online business, understanding and utilising local payment methods is key for merchants to meet the diverse needs and preferences of customers worldwide. For example, our payment professionals can help merchants find a suitable payment mix tailored to their customers’ distinct requirements and preferences. It is important to provide a unified platform that covers a wide array of local payment options, including bank transfers, digital wallets, and region-specific payment methods, so merchants can find all these services consolidated under one roof. Moreover, compliance and risk teams can guide merchants through the intricate regulatory landscape, ensuring adherence to the compliance standards associated with each local payment method. This approach guarantees a secure and smooth transaction process for both the merchants and their customers. Even more so, the infrastructure should be adaptable and designed to keep pace with the ever-changing landscape of payment preferences among international customers. 

What specific challenges do businesses encounter when it comes to cross-border payments in the ecommerce space, and what features should payment providers offer to mitigate them?

Businesses often face several challenges when dealing with cross- border payments in the ecommerce realm. One of the primary obstacles is navigating complex international regulations and compliance standards, which can differ significantly from one country to another. Additionally, fluctuations in currency exchange rates and associated transaction fees can pose financial hurdles for businesses engaged in cross-border transactions. Ensuring secure and reliable payment processing while maintaining transparency and trust across different jurisdictions is another critical concern for businesses operating globally. In addition, supporting multiple currencies helps businesses avoid foreign exchange losses commonly incurred during cross-border transactions. At TrustPay, we make sure to focus on putting secure measures in place and strong fraud prevention to build trust and keep both merchants and their customers safe. Moreover, accessible customer support and responsive services should be designed to assist businesses promptly, fostering a positive and seamless cross-border payment experience.

How do payment providers ensure the security of cross-border ecommerce transactions, and what specific fraud prevention measures and technologies are essential to protect both businesses and customers?

Making sure that cross-border ecommerce transactions are secure is crucial. It’s all about building trust and keeping businesses and customers safe. To do this, we use a combination of different methods and modern technologies.

One important thing we need to do is use strong data encryption methods. This keeps sensitive financial information safe when it’s being sent. We also use tokenization, which means replacing sensitive data with special symbols to lower the chances of any data breaches and make transactions even more secure. It is important to use smart systems to detect and prevent fraud. These systems could use artificial intelligence (AI) and machine learning (ML) to examine transaction patterns in real time. This helps quickly identify anything unusual or suspicious. Through these actions, we can halt any fraudulent transactions, thereby protecting both businesses and customers from potential financial losses and reputational harm. It is also crucial to implement measures like 3-D Secure and additional checks to verify who’s involved in the transaction. This way, it is possible to decrease the risk of any unauthorised access or questionable activities. Our team, for example, keeps a constant watch on transactions, always on the lookout for anything unusual. If we spot anything suspicious, we should act promptly to prevent any issues and ensure the safety of cross-border ecommerce transactions. Regular checks and audits are also crucial.

What is the significance of a good provider relationship?

Establishing a solid partnership with a dependable payment provider is essential for businesses in various aspects. By enabling clients to concentrate on their core operations rather than tackling intricate payment issues, TrustPay adds value to their services. This not only guarantees smooth and secure payment processing but also cultivates a sense of trust and reliability among customers. A good relationship with their payment provider allows businesses to offer a variety of payment options, accommodating diverse customer preferences and enhancing the overall shopping experience. A robust partnership with a payment provider can facilitate efficient and timely resolution of any payment-related issues or concerns, contributing to customer satisfaction and loyalty. Moreover, a dependable payment provider can help businesses stay updated with the latest industry trends and technologies. This is instrumental in fostering business growth, customer satisfaction, and long-term success in the realm of online commerce.

This editorial piece was first published in The Paypers' Cross-Border Payments and Ecommerce Report 2023–2024, which taps into the fast-growing cross-border market and provides a comprehensive overview of trends and developments that are pivotal in this space, being the ultimate source of information for ecommerce businesses interested in expanding globally. 

About Karin Milková

Karin is an experienced professional in all things related to the latest payment trends, whether it’s within the European Union or around the world. She’s currently in the position of Commercial Director at TrustPay, where she’s the driving force behind building business relationships, shaping smart business strategies, analysing sales figures, finding potential leads, and nurturing important partnerships.

 

About TrustPay

TrustPay belongs to the first financial institutions within the region to provide secure ecommerce payments across the EEA area. Since its establishment, TrustPay has focused on providing innovative payment services for online businesses with cross-border reach, offering a variety of payment solutions. TrustPay’s portfolio includes worldwide online card payment processing, a large portfolio of alternative payment methods, modern accounts for online businesses, innovative reconciliation tools, and reconciliation tools.


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Keywords: ecommerce, cross-border payments, merchants, payment methods, online security
Categories: Payments & Commerce
Companies: TrustPay
Countries: World
This article is part of category

Payments & Commerce

TrustPay

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