Help your merchants do business and move money at a global scale.
The online payments sector is evolving fast. Technology advancements, a rapid rise in retail eCommerce and new expectations for the user experience are key trends impacting the market.
For payment service providers (PSPs) and their merchants, the rise in global trade and eCommerce is a major growth opportunity. Retail eCommerce sales worldwide are projected to almost double in just three years, hitting over USD6.5tn in 2022.
Most eCommerce merchants already recognise this opportunity. Research shows that 87% believe that international online sales expansion is a vital next step.
Emerging markets have some of the biggest eCommerce opportunities, with fast growing economies driven by a rising middle class and accelerating smartphone usage. Here, merchants are embracing payment aggregator platforms to distribute their goods and services to developed markets.
But while many are hungry to do more international business, there’s one major roadblock in the way. Receiving payouts via their preferred payment method in their local currency can be lengthy, costly and confusing.
In emerging markets, where getting paid for products and services from overseas can be especially unreliable, the situation for merchants is even more uncertain.
How can PSPs deliver great, secure and simple payout experiences for merchants?
Transform payout capabilities
Let’s look at a typical scenario.
A PSP might need to make payouts to merchants based in the Philippines who don’t have bank accounts – they’re always on the go, working on the road, maybe working nights and weekends.
These merchants are used to getting paid immediately by local customers and depend on quick payouts to their mobile ewallets to survive day to day. Now that these merchants have overseas customers, they worry that payments will be slow, unreliable and stacked with high FX and transaction fees. They are also uncertain about the final amount they will receive. If the PSP can pay out instantly and dependably with low costs it can help the merchants grow their payment volume and stay profitable. Everyone in the process is happy.
Overcome payout challenges
Winning starts with providing merchants with a proven online payout infrastructure. Important features are global interoperability, real-time payments, competitive FX rates and the lowest possible transaction fees.
For many PSPs, managing payouts across borders is a challenging task. Uploading spreadsheets and juggling multiple payout partners and relationships sucks up valuable time and back-office resources.
It can also be hard to stay on top of increasingly complex compliance requirements and regulatory landscapes, especially in emerging markets. Understandably, this specialist area is not a part of PSP’s expertise.
Traditional payouts using intermediary banks are non-transparent, slow and expensive. Merchants and customers are forced to go in blind when it comes to payouts across borders, with nobody in the process able to confirm the total final cost of bank transaction fees until the payout arrives. In a digital world, that’s simply not fit for purpose. The result is reduced customer satisfaction. Clearly, a PSP that offers instant confirmation has a competitive edge.
Give merchants what they need
To successfully grow their merchant customer base, a PSP needs to offer instant access to many international markets, including the world’s fastest-growing emerging economies. Merchants want real-time payouts across borders in local currencies via multiple payout methods, including bank accounts, digital wallets, and more.
At the same time, a PSP has to offer merchants competitive foreign exchange (FX) rates. That counts for a lot when margins are being squeezed tighter than ever before.
There should be visibility over the transfer status as payments are processed, so all stakeholders know where the money is and when it reaches its destination.
Transactions passing through the payout process must also remain secure and encrypted to ensure that nobody gets any nasty surprises.
Increase revenue with API payouts
An outstanding payout experience needs cutting-edge payment technology running behind the scenes. A PSP can save costs and improve back-end operations by harnessing the power of single-click API integration, automating hours of manual troubleshooting and cutting out opportunities for human error.
A PSP should look for an API that integrates seamlessly with its existing payments infrastructure, to ensure getting up and running is quick and simple. As business needs and target markets change, the API should have a range of configurations to choose from, so it’s also easy to scale up at a later stage.
Ready to give your merchants a better payout experience?
Partner with Thunes to ensure your merchants can move money anywhere in the world. Find out more about Thunes’ payout solution for payment service providers here.