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How Fintech and Payments Innovations Will Disrupt Global Ecommerce

Host: Jeffrey K. Ernst, August 14th, 2015

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With the growth of international ecommerce platforms like Shopify and Magento and payment platforms like PayPal and Stripe, the barriers to ecommerce are crumbling, giving life to new businesses, opening up new revenue streams for established players, facilitating economic trade, and driving technology advancements worldwide. As ecommerce continues to become increasingly global, fueled by growth of internet coverage around the world and higher levels of smartphone penetration, the forms consumers use to pay for their digital and physical goods will continue to evolve as well.

Facebook, Google, Apple and Microsoft, which are engaging in cross-border business and providing global services, are tasked with deploying their services on top of old and fragmented payment infrastructures. This is particularly challenging in emerging markets, because each country has its own legal framework, issuers, acquirers, processors, and gateways, resulting in payment methods that may appear to be very similar on the surface but are very different under the hood. In addition, consumers in emerging markets are still relying on alternative payment methods like bank transfers, installments, and voucher-based methods involving cash. Their payment preferences vary from country to country.

This challenge has given rise to a number of increasingly important technologies and companies influencing the payment arena in markets across the world. I’m not talking about Apple Pay, Android Pay and PayPal; their worthy contributions have already been chronicled on hundreds of occasions. Stripe, however, deserves plenty of praise, as well as companies like BlueSnap and Payoneer. They are the ones powering a new breed of business such as marketplaces, content companies and ad networks, as well as some traditional online retailers and merchants, with API-based payment solutions that are global-ready and mobile-first.

 

 

 

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