As e-commerce marketplaces continue to expand globally, which includes sites such as Amazon.com, Alibaba.com and JD.com, cross-border payments are pegged to experience a compounded annual growth rate of about 16 percent by 2020, according to the latest analysis from Pymnts.com and X-Border Payments Optimization Tracker.
“This month’s tracker serves as a framework for evaluating nearly 100 companies that provide merchant payment processing services geared for cross-border payments,” the firm said, adding that as cross-border payments rise, payment solutions will take center stage.
Pymnts.com also said in its report that by 2020, 25 percent of China’s “entire population is predicted to be ordering items through cross-border e-commerce” sites. WWD recently reported on the growth of e-commerce transactions from vendors in the U.S., Europe and Asia into China.
“Mobile payment solutions have emerged as useful, seamless and convenient alternatives for consumers who prioritize efficiency when making online transactions,” the firm said, noting that IBM is now offering Apple Pay to its e-commerce clients who are making online transactions, “and the tech company opted to integrate this payment method after learning that 80 percent of consumers’ reasons for abandoning the checkout process are tied to the process of inputting payment information.”
The demand is also driving other companies to form partnerships. Pymnts.com said, for example, that mobile payment solution Alipay partnered with payment provider Concardis to “streamline brick-and-mortar payment processes for Chinese tourists shopping in Germany.” The firm said it is expected that more than 200,000 German retailers will “adopt the duo’s solution, which will soon be introduced in Austria as well.”
The company said there were 98 payment companies in its scorecard tracker this month with notable additions including: ACI Worldwide; CX Pay; EPay; Globebill; Merchant e-Solutions, and SafetyPay; among others. Pymnts.com also uses a series of metrics to rank payment firms on a variety of measures that include fraud tools and developer tool kits as well as payment methods and compliance services.
In this month’s report, the top three highest scores went to Ingenico ePayments with a score of 82 2; ACI Worldwide with an 81 3 reading, and Worldpay at 78 4. Others in the top rankings included Digital River, BlueSnap, Chase Paymentech, Paysafe, CyberSource, Pitney Bowes and Vantiv.