Wednesday, 29 Sep, 2021
Table of contents:
The APAC economy is emerging as a new leader in global trade. Ecommerce in this region has flourished extraordinarily leading to the booming of digital payments and cross-border transactions via the internet. However the fraud trends also evolve simultaneously, resulting in the need of balancing business growth and fraud prevention. Now e-commerce companies in APAC can leverage the advantages of online merchant accounts to approach the new solution.
Balancing growth & Fraud prevention in APAC with online merchant account
Asia Pacific is expected to outperform the rest of the globe in terms of ecommerce spending, accounting for 64.3% of worldwide spending.
However, as ecommerce expands, so does fraud. According to a FIS survey, 84 % of merchants in APAC have experienced revenue losses as a result of payment fraud, with synthetic identity and account takeover being the most common causes of operational and revenue losses.
What are the best practices in fraud detection that won’t scare away the customers while protecting the organization from large financial losses?
Several factors (selectively captured below) had provided a clear path for continuing payments growth across Asia as we approached 2020.
The rapidly growing number of connected and digitally active consumers was the most important of these, with flourishing e-commerce markets increasing the need for digital solutions. With the advent of tough new companies such as telecommunications corporations, fintechs, "big technologies," and other conglomerates, the competitive landscape was heating up at the same time, prompting incumbents to step up their own innovation efforts.
Meanwhile, policymakers worked to standardize infrastructure while encouraging competition, promoting real-time payments, digital know-your-customer (KYC), and a variety of local payment schemes.
Promoting real-time payments, digital know-your-customer (KYC)
According to a research of McKinsey & Company, There are 7 emerging payments trends across emerging and developed Asia:
The current momentum gained by e-wallet providers and QR-enabled solutions is projected to accelerate the shift away from cash, especially in emerging economies, with contactless payments serving as a driving force in developed Asia. Account-to-account transfers are also projected to become more common.
Banks have a “bonus”: they can win developing Asia by using their e-wallets. Platforms surpass at providing a positive consumer experience. In developed markets, experts view digital ecosystems (e.g., Kakao in South Korea) and big tech players (e.g. Google, Facebook) as better positioned to prevail, given the superior user experience and ubiquitous reach of “super apps” (which address the full array of consumers’ digital needs) offered by these players and increasingly connected to funding sources like bank accounts and credit cards.
Due to the reduction of friction and transfer time, many users have chosen e-wallets rather than current accounts. As a result, banks in other regions have already begun the rebundling process, offering more added value to the product features which are not necessarily relevant to financial service in order to enhance customer experience.
Lower merchant discount rates (MDRs) and faster settlement will enable smaller merchants to adapt quicker in online business. There will be more medium and large enterprises join the online acquiring industry, leading to an intensive competition between local legacies and global providers.
Banks can pursue a utility model, outsourcing, or pooling ATMs when cash demand drops. Banks, on the other hand, might serve as a service provider for digital currencies by offering local clearing and settlements.
Cross-border payments in Asia are expected to wide spread like SEPA (Single Euro Payments Area) in European countries. In addition, regional ecosystem players could provide comprehensive cross-border services to other neighboring countries or regions.
64% of survey respondents expect consolidation along the value chain. For instance, ecosystems purchasing issuers and payment gateways will combine together.
As a survey information of Business Insider India , the payment industry in APAC region is facing huge challenges in tackling fraud trends.
With the rise of online commerce, Asian banks and payment service providers have shown a strong desire to implement 3-D Secure 2.0, or 3DS2. This is an enhanced version of the 3DS authentication protocol for card payments that provides higher security and a more seamless shopping experience.
The rise of e-commerce in APAC countries has impacted significantly on merchants. Nowadays, online businesses need to care more about the rate of cart abandonment, friction in online payment and customer experience. Therefore, seamless flow in checkout payment is very crucial. Online transactions are safer and smoother with the new version of 3DS, improving both consumer experience and income for merchants.
New Security Standard for Asia’s E-Commerce - Online merchant account
Operating an internet business comes with massive difficulties that every leader has to confront. It is more challenging when it comes to protecting personal data of customers and exceeding customer expectations.
Gain trust with online merchant account
Online merchant accounts are indispensable parts of e-commerce. Normally, we understand the definition of “What is merchant account?” only on the surface. In deep, an online merchant account is more than just a user account for merchants to manage online transactions from customers.
An online merchant account is a business bank account or company bank account that enables an online business to accept and process credit/debit card payments. Online merchant accounts require a partnership between a company and a merchant acquiring bank, which handles all communications in an electronic payment transaction.
Apart from accepting payment cards, online merchant accounts also support e-commerce firms that handle more types of payment methods such as e-wallets, cryptocurrencies, internet banking transfers and more.
Online merchant accounts are key components of e-commerce. They act as fund management tools that enable merchants to collect electronic payments on their e-commerce websites and withdraw funds to their bank accounts. Besides, online merchants can also track transaction reports in real time, chargeback rates, etc. in detail.
When customers make a purchase, the funds must first be authorized and processed before they can be deposited into the merchant's account.
A few safeguards are in place to protect merchants from card fraud and to ensure that the consumer has the funds to pay for merchants. The money is paid directly to the merchant account after their customers' card payments are checked following the transaction.
Most merchants rely heavily on merchant accounts to run their businesses. When it comes to selecting a merchant account service provider, merchants have a number of options, with transaction costs playing an important role. Merchant acquiring banks, which work with merchants to facilitate electronic payments, provide merchant accounts.
If a brick and mortar business chooses not to accept electronic payments and only accepts cash, they do not need to open a merchant account and can instead rely on a basic deposit account at any bank. However, because electronic payments are the only option for online businesses, they must establish merchant account partnerships as part of their business operations.
In this part, we will help you to answer the question “ why do you need a merchant account?”. When you run an ecommerce business, you need to open a merchant account. If you apply for merchant account online, then there will be numerous merchant account benefits to discover.
There are various pricing packages available when you apply for merchant account online. At PayCEC, we offer some merchant account fees depending on your business needs.
|Overseas representative offices and international subsidiaries are available to experienced merchants looking to massively expand up their company.||All in one solution for your business needs.|
To apply for merchant account online, you can visit paycec.com and follow the simple steps below.
Sign up with PayCEC team by click to [Sign up] button on paycec.com
Prepare your company profile including:
PayCEC Relationship Manager will contact and support you in onboarding and merchant account integration
Use full features of payment service and ongoing 24/7 maintenance support
For more information, you can contact our relationship managers to have detailed consultation and online support via email [email protected].
PayCEC was established in response to the growing need of businesses to accept online payments more quickly and easily. In the new media era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.
PayCEC is a truly global payments platform that not only allows customers to get paid but also withdraws funds to their Business accounts in various currencies.
We have created an open and secure payments ecosystem that people and businesses choose to securely transact with each other online and on mobile devices.
We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.
Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.
PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.