By Peter Keenan, Co-Founder and CEO APEXX Fintech
When scaling your business and growing internationally, its essential to tailor your payments needs to your new markets. Payment acceptance is at the core of commercial capability and getting the best deal – or even a good deal – is difficult because of the opaque nature of the payments industry. The typical single-acquirer model most merchants use is fundamentally flawed and does not give a competitive rate on international payments acceptance.
Cross-border payments incorporate a variety of additional and complex elements that result in acquirers increasing their rates. These can include factors such as costs for currency conversion or the perceived increased risk of international payments, but overwhelmingly acquirers raise prices because they can. Most merchants looking to expand into new international markets simply do not understand their payments acceptance options well enough to look for alternatives, or they are so fully engaged with the other challenges of expansion that exploring new options is not a priority.
If these merchants had the time and appetite to explore properly they would discover integrating with multiple acquires, particularly those local to their new markets, can enable huge cost saving on FX and basic payments acceptance as well as dramatically increasing conversion rates of transactions. In an industry where there are more than 426 billion cashless payments a year, the savings potential is massive. The business case is clear; diversification drives competition and, consequently, competitive pricing.
I will be at the 2017 Global Expansion Summit if you want to find out more about how we can help you integrate multiple gateways and acquirers into your payments suite without exhausting time, energy and money entering negotiations..