EXCLUSIVE: PPRO and The State Of Cross Border E-Commerce
The USA, the birthplace of the charge card, has seen the market share for cards and online payments fall from 72% in 2020 to about 59% in 2022. This statistic set the mood at PPRO’s webinar discussion of, ‘The State of Cross Border E-commerce’. PPRO is the industry’s trusted provider of local payments infrastructure, powering global growth for payment companies and at the forefront of both domestic and cross border e-commerce.
The webinar was led by PPRO’s very own Jamie Lee, Head Of Partner Management for EMEA, and also featured Kelvin Phua, VP of Global Market Development alongside Claire Gates, Chief Commercial Officer who each offered some extremely vital talking points about the importance of LPM’s within cross border e-commerce.
Gates was quick to explain the impact of Covid-19, how e-commerce has thrived in a world plagued by local lockdowns and more importantly how cross-border e-commerce has been growing at double the rate of domestic e-commerce. This has been the result of improved supply chain technology and regulations facilitating the creation of a borderless consumer, no longer burdened with a limited selection and endless amounts of time wasted waiting for delivery.
Central to the cross-border e-commerce expansion, there has been a more hands-on approach adopted by merchants across the globe with much more of a focus being placed on different cultures Local Payment Methods (LPM’s). Gates also illustrated the value of a merchant understanding and utilising a LPM’s as it in a company raising their rate of conversion rates.
The transition away from offering solely credit and debit cards towards unique LPMs is one that seems long overdue as, in the true spirit of FinTech, it supports unlocking the underbanked market. Kelvin noted how Indonesia exemplifies merchants’ success when there has been a focus on LPM’s. Currently, their e-commerce market is worth around $USD 24 billion, projected to reach $USD 54 billion by 2025 and 1 in 4 online purchases are from outside of Indonesia, yet only 2% of consumers own a credit card.
Indonesia is just an example of the rule, not an exception. Poland’s current e-commerce market is on fire, worth around $USD30 billion and expected value of $USD47 billion in 2024 bank transfer methods represent the majority of online payments, with 150,000 Polish Merchants accepting popular Bank transfer application Blik as a payment method. From this it becomes difficult to understand why organisations would not want to get involved.
This was merely a snippet of the discussion during the PPRO webinar and one which brings to light the importance of employing a holistic approach to cross-border payment methods. PPRO’s own customer exclusive Almanac boasts detailed accounts of 60 e-commerce markets and over 460 LPM’s which look to offer invaluable insight for companies expanding.
The webinar can be accessed on PPRO’s website, or, alternatively by using this link!
Companies In This Post
- US blockchain company, Constellation Network, Welcomes Leading Experts from Top Enterprises and U.S. Government Agencies to their Enterprise Advisory Board. Read more
- JustPaid, AI-powered Finance Startup, To Launch Game-Changing GPT App In OpenAI’S GPT Store Read more
- Eltropy Collaborates with Jack Henry’s Banno Digital Banking Platform Read more
- Ledger partners with bolt to launch device protection for its industry-leading secure devices Read more
- Nigeria: African Development Bank and FSDH Merchant Bank sign $20 million Trade Finance Agreement to support Small and Midsize Enterprises (SMEs) and Corporates Read more