Brazil: A World of Opportunity

As one of the top ten richest countries in the world, with one of the fastest-growing eCommerce markets, Brazil represents a great opportunity for businesses in the United States to access a rapidly expanding market.

Why Brazil?

With over 209 million consumers and a GDP of 1.87 trillion USD, Brazil is the ninth richest country in the world, and one of the fastest-growing eCommerce markets worldwide. Currently, Brazil has 66.4 million consumers who shop online, drawing in a revenue of 21 billion USD from eCommerce purchases. Between 2018 and 2022, online sales are expected to grow by almost 11 percent annually, with revenue from eCommerce consumers expected to exceed 31 billion USD by 2022, representing a tremendous opportunity for merchants and ISOs in the United States.  

Barriers to Entry

If you are an enterprise-level business conducting international eCommerce, Brazil is a viable and profitable market to tap, however, significant barriers to entry are frequently encountered. Some of the most common barriers faced by businesses trying to expand into the Brazilian market include understanding local laws, regulations and tax requirements, lacking a physical presence, cultural barriers, and finding the right partner(s) to gain access.

Benefits of a Brazilian presence

In Brazil, 69% of online payments are made by credit card, however, the vast majority of these transactions are via local credit cards, with only 20% of Brazilian consumers possessing international credit cards. With the majority of the Brazilian market not having access to international credit cards, providing payment acceptance for domestic payment methods is crucial. By having a legal and physical presence in Brazil, this facilitates your business’s ability to offer solutions for domestic payment methods, enabling your business to make the most of this burgeoning consumer class. 

A local presence can also assist your business in attaining an in-depth understanding of compliance with local laws and regulations, ensuring secure and reliable processing and settlements. Similarly, knowledge of tax requirements in Brazil can help simplify the complexities of the taxation system, allowing your business to price your products and services competitively. Lastly, local knowledge of the culture and economy can also help facilitate cultural assimilation and eliminate cultural barriers, optimizing your business’s presence in the Brazilian market. 

Payscout Brazil

Payscout Brazil is a licensed Payment Service Provider (PSP) established in São Paulo in 2013. Our physical presence in Brazil affords your business access to a full range of domestic and international payment methods, including domestic credit and debit cards, Visa, Mastercard, Boleto Bancário, Bradesco Comércio Eletrônico, Banco do Brasil Comércio Eletrônico, Banrisul, and Banricompras. Payscout Brazil provides both POS and eCommerce solutions, along with its best-in-class fraud solution, Gumshoe, which offers the risk mitigation and stability essential for cross-border and eCommerce international payments. 

To learn how you can access this booming market of over 200 million consumers, visit payscout.com/brazil.

Everything You Need to Know about UnionPay

With over 7.5 billion UnionPay cards issued globally – more than Visa and Mastercard combined- UnionPay has grown to be the largest supplier of payment cards in the world.

UnionPay (formerly known as China UnionPay, or CUP) is China’s sole bankcard association. It was established in 2002 in Shanghai, under the approval of China’s central bank. With over 7.5 billion UnionPay cards issued globally – more than Visa and Mastercard combined- UnionPay has grown to be the largest supplier of payment cards in the world. 

Why UnionPay?

UnionPay allows Chinese customers to pay with a trusted and familiar card brand, no matter where they are. As of March 2019, UnionPay cards are accepted in 174 countries and regions, and by 52 million merchants worldwide. In particular, in the US, over 80% of merchants accept UnionPay cards, greater than the US merchant acceptance for American Express cards. Additionally, almost all ATMs in the US accept UnionPay cards, as part of the 2.6 million ATMs worldwide accepting UnionPay.

If you’re already accepting UnionPay cards, you can increase conversions by 30-90% by switching to Payscout’s SecurePlus connection, which combines credit and debit card acceptance in one solution. 

UnionPay cardholders also receive exclusive privileges when traveling, including no foreign transaction fees, no purchasing limits, worldwide customer support, as well as discounts at various attractions and retailers around the world. In 2017, there were more than 131 million Chinese tourists worldwide, who spent approximately $115 billion overseas. In the United States alone, 3.5 million Chinese tourists are expected during 2019, with this figure increasing to 4.5 million annual visits by 2022. 

The number of UnionPay transactions totaled 17.69 trillion in 2018, up 28% from 2017. With the increased global acceptance of UnionPay and growing number of Chinese tourists worldwide, this figure is only expected to continue rising at a rapid rate. 

UnionPay Products/Services

UnionPay supplies both debit and credit cards, although credit cards make up the majority of UnionPay cards issued. There are almost 900 million UnionPay credit card accounts, over 5 times greater than American Express. UnionPay also offers online and mobile payments, with their mobile payment app QuickPass hitting 150 million users in April 2019. As part of their online payment processing, UnionPay offers an e-commerce solution, UnionPay Online Payments (UPOP), which allows for cards to be accepted over the Internet with real-time transaction authorization.

UnionPay as a preferred payment method

According to the 2018 World Tourism Cities Federation report, mobile payments and UnionPay cards are the preferred methods of payments for Chinese tourists, ahead of Visa/Mastercard and cash. However, while there is a huge demand for UnionPay as a method of payment, many Chinese tourists are worried about the acceptance of UnionPay overseas. Therefore, once you set up UnionPay, it is highly recommended to display the UnionPay Logo on your website or store-front, ensuring that Chinese customers are aware that you accept this preferred payment method.

Payscout provides instant onboarding for updated UnionPay API connectivity, enabling debit and credit card acceptance with branded logo placement and SMS authentication. 

How can I accept UnionPay?

As a Principal Member and Global Acquirer of UnionPay International, Payscout can help you add this preferred method of payment to your e-commerce sites. Settling with Payscout not only saves you time, taking only 2 days versus the typical 5 days, but also saves you money on UnionPay processing with costs at 2.5%. 

In addition to offering both debit and credit processing, Payscout offers tokenization and full integration with UnionPay SecurePlus. Tokenization improves issues with card security, while SecurePlus allows companies to accept both credit and debit cards without a redirect to a UnionPay Hosted Payment Page, thereby improving the customer experience and increasing conversions at the same time. SecurePlus also improves security, as all debit transactions receive an SMS authentication code, therefore reducing fraud risks and severely reducing chargebacks too.

 We can help you get access to the world’s largest card network in the world. Visit acceptunionpay.com to get started with UnionPay today.  

Visit payscout.com/china to learn more.

Is the Wallet Card the Credit Card of the Future?

Cashier holds terminal for cc transaction

If you haven’t heard of the Wallet Card yet, chances are you will soon. Unveiled in early 2018 by Dynamics and Visa, the Dynamics Wallet Card™ has been generating an impressive amount of buzz. It’s been written up in numerous articles and has won several awards. One of those was the 2018 Best of Innovation Award at the Consumer Electronics Show in Las Vegas, widely considered the consumer electronics industry’s most prestigious award. It’s the first time a payments consortium has won it.

That’s a lot of exposure and expectation for any new product or technology. All too often, products that are subject to that much hype wither away into obscurity under the glare of that much scrutiny and anticipation. So what is the Wallet Card and will it be the “next big thing” in consumer finance?

What the Wallet Card Is and Does

The Wallet Card has the capacity to be all of your payment cards: debit, credit, pre-paid and one-time use, even branded loyalty and gift cards, all in one. A digital display and two-button interface allows users to toggle between accounts and cards instantly.

So how will this impact international payment processing? Only time will tell. But with partnerships with leading banks and communications corporations all over the globe, the Wallet Card is being billed as a virtually universally-accepted form of payment.

The Wallet Card is linked to the internet of things with both a cell phone chip and antenna, which is said to allow it to communicate with and transfer money between the user and their bank anywhere on the planet, at any time.

That connectivity also means the instant issuance (and registration) of new cards. For instance, after the deletion of a compromised card number, one could expect near-immediate reissuance of an uncompromised card.

Robust security and instant reissuance could certainly prove a selling point, as almost 50% of cardholders in the U.S. have to have at least one card reissued every year. And conveniently, all of that tech is powered by a self-charging battery, which means no loss of payment method at inconvenient times or daily charging.

Is It Going to Replace Plastic as We Know It?

Perhaps unsurprisingly, there’s considerable disagreement on the answer to this question from those predicting the future of commerce and finance. One camp, those skeptical of the Wallet Card’s future status as the revolutionary smart card, has pointed out that mobile digital wallet platforms already exist. There is any number of digital wallets available as apps or built-in features of smartphones that can do most everything the Wallet Card does, and they’ve been around for a while.

Wallet Card proponents counter that existing digital wallets don’t enjoy anything like universal acceptance from vendors, particularly since so many of them rely on near-field communication (NFC) to transmit payment info. Additionally, the Visa-branding and support from global financial heavyweights should guarantee the quality, consistency, security, and acceptance of the Wallet Card.

Even those who doubt that the Wallet Card is going to become the end-all, be-all of mobile payment solutions admit, however, that at the very least it will have niche appeal. People will appreciate that it doesn’t need to be accessed or managed through an app, and doesn’t have to be charged.

Regardless of if the Wallet Card takes off or fizzles out, it’s important to work with a global payment processing provider you can trust for everything from healthcare payment processing to international payment processing. Payscout is an international payment processing solution provider who can help entrepreneurs and domestic U.S. merchants navigate complex compliance solutions. Beyond processing payments on six continents, Payscout offers a wide array of financial solutions, including their mobile web portal, Condor, which facilitates bill-payment transactions.

About Payscout

One of the most respected, successful, innovative, and forward-looking thought leaders in the financial services industry, Payscout has consistently earned their way onto lists of America’s fastest-growing private companies every year since 2014. Among the state-of-the-art suite of user-friendly tools they offer is their lauded accounts receivable collections software. All of which works in service to their mission statement, “Payscout supports the entrepreneurial dream one transaction at a time.”

Discover how to grow your business at www.payscout.com

Global B2C Ecommerce is Expected to Grow to $1 Trillion by 2020

Young entrepreneur woman using tablet work at home office looking at camera.

Is your business ready to tap into the international ecommerce market? If not, you could be losing out on access to millions of potential consumers and their online purchases.

The global business-to-consumer ecommerce market was valued at $230 billion in 2014, but is expected to reach $1 trillion by 2020, according to  a report from global consulting firm Accenture and AliResearch, the research arm of Alibaba Group. This marks a pivotal opportunity for small- and mid-sized firms and global entrepreneurs who are interested in tapping into emerging markets.

Cross-border ecommerce is a segment of the global B2C market where consumers make online purchases from businesses physically located in other countries. One of the easiest and most secure ways to facilitate global ecommerce is through an international payment processing system.

Experts estimate that by 2020, international ecommerce will account for almost 30% of global B2C purchases. According to the report, more than 900 million people around the world are expected to participate in online international shopping.

If you see potential to grow your online retail operations, you can’t afford to miss out on this trend. An international payment processing system can help smooth the transition into global markets by helping you navigate foreign rules and compliance issues and streamline payment processing. Look to work with a company that offers an international payment processing system and that can also help you connect with international contacts and experts in new markets such as Brazil, Canada, and Europe.

Global analysts and investors are also carefully following China’s growing economy. Global ecommerce grew by more than 70% in 2015 in China alone, driven partly by China’s growing middle class, higher standards of living, and increased exposure to foreign markets.

An estimated one-quarter of China’s population will soon be shopping either directly on a foreign company’s website or shopping through third parties like Alibaba, JD Worldwide, or Amazon. This equates to over 200 million ecommerce shoppers in China over the next five years, totaling over $245 billion in ecommerce transactions.

In addition, international ecommerce is expected to see compound annual growth of over 27% in the next five years. This is double the current rate of B2C shopping worldwide.

Even if you don’t anticipate venturing into international markets, which might be the case for local businesses like a regional healthcare provider or a utility company, you still need a payment processing system that is efficient and secure.

A healthcare payment processing system should integrate with other software applications, customer accounts, and financial institutions to facilitate fast and secure payments. Reliable, integrated banking solutions are a central component to electronic payments.

Also look for payment processing systems that support frictionless payments. This emerging concept integrates a customer’s banking information with point of sale transaction through an app or mobile device, allowing customers to pay a bill or make a purchase from their phone instead of physically swiping a debit or credit card.

Whether operating domestically, internationally, or moving between global and local markets, your payment processing provider should ensure excellent customer service, mobile capabilities, personalized solutions, and API connection for real-time data transfer.

 

 

 

The Mobile Payment Market is Expected to See Steady Growth in Coming Years

The global mobile payment market was valued at over $600 billion in 2016, but is expected to surpass $4,574 billion by 2023, according to findings published by Allied Market Research.

That is a compounded annual growth rate of 33.8%.

The Asia-Pacific region accounted for the most revenue in the mobile payment market in 2016, a trend that is likely to continue in coming years. In that same year, the retail industry accounted for nearly one-third of mobile market transactions, but the hospitality and transportation industry exhibited the fastest growth rate. Other industries listed in the report as also benefiting from the rise of mobile payments include healthcare, energy, and utilities.

The term “mobile payments” refers to any transaction for a product or service that is made through an app, website, or mobile payment processing system on a smartphone, tablet, or other mobile electronic devices. In most cases, payment information is encrypted for security purposes.

This technology isn’t just driving revenue for the business sector; it’s helping streamline donations and operations for non profits as well. With a non profit payment processing system, organizations can streamline donations through a centralized merchant account, regardless of whether donors are online, on-site, or using a mobile platform.

Non profits can also use mobile payment systems to help achieve greater efficiencies. Using PCI-compliant, web-based donation forms, non profits can reach out to volunteers and manage recurring donations securely and effectively.

There are several factors driving growth in the mobile payment market:

  • With the rise of smartphones, almost everyone has access to the mobile payment market, whether or not they use it.
  • Though many consumers still have concerns over privacy breaches and data security, the ease and convenience of mobile payments often supersede those security concerns.
  • The widespread adoption of smartphones in emerging economies like China is propelling the growth of mobile payments. As the middle class in countries like China and India continue to grow, so too will mobile payments.

While some companies utilize what is known as frictionless payments, where transactions are submitted through an app without swiping a debit or credit card, not all mobile payments need to be truly frictionless.

Businesses that do not yet have access to a frictionless environment can easily access the mobile payment market with a mobile card reader attachment. This allows vendors to process customer credit or debit card payments on-site, making them perfect for mobile retail sites like farmer’s markets, trade shows, or fundraisers—or a brick-and-mortar business that wants to streamline the checkout process.

A mobile payment processing system is a safe and easy way to complete sales quickly and send customer e-mail receipts, all through a smartphone. Select a system that is compatible with Apple and Android mobile platforms and supports a range of devices, including multiple generations of iPhones and iPads.

When deciding between payment processing systems, look for companies that offer full compatibility with Apple and Android and do not charge a fee for set up, early termination, or cancellation. If possible, find a payment processing company that will provide a mobile card reader for free, as well as 24/7 technical support.

About Payscout

Payscout connects merchants and consumers via credit, debit, ATM, and alternative payment networks across six continents. With Payscout, it’s easy to manage payments on-site and across online and mobile platforms. With customized services for healthcare payment processing and utility payment processing, Payscout offers customized API connections and integrates with over a dozen software applications.

 

Discover how to grow your business at www.payscout.com

How Payscout’s Integrated Payment System Can Drive Your Business

 

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Payscout is a leading payment processing provider that connects businesses, consumers, and financial institutions through credit, debit, and ATM networks across the globe.

With integrations for over a dozen software applications, Payscout facilitates electronic payment solutions for all types of business operations.

Utility companies, collection agencies, and global financial firms are just some of the entities that can benefit from Payscout’s integrated processing system.

Enhanced Engagement for Utilities

Utility companies regularly engage with customers through monthly billing, rebates, and online dashboards, all of which give customers more control over their consumption and billing.

Maintaining and strengthening these customer relations is crucial for utility companies, and Payscout’s utility payment processing solution offers enhanced outreach capabilities. Payscout’s integrated payment capabilities can help utility companies maintain efficient operations by providing frictionless payment options. This means that customers can engage through a mobile device, app, or website in order to pay a monthly bill, read up on annual rebates, or check out their monthly usage.

Secure Accounts Receivable Management (ARM) Services

The breadth of the ARM industry requires an integrated payment system equipped to handle complex and multi-faceted transactions. Payscout’s accounts receivable collections software connects collection agencies, merchant and customer accounts, and financial institutions to facilitate fast and secure payments.

Payscout’s integrated system is available in real-time and supports a wide range of industries, including medical, telecom, student loans, and financial institutions.

Payscout’s mobile web portal, Condor, facilitates online transactions, and Payscout offers a direct gateway connection for real-time data transfer. This fully integrated system works with over a dozen software applications, allowing your customers to make payments in new and innovative ways.

Explore Global Transactions

If you’re considering entering global markets, Payscout’s international payment processing system can help you manage foreign credit and debit transactions or expand into offshore markets.

Payscout’s existing locations in Brazil, Canada, the European Union, and United States will help you connect with international merchants, navigate foreign agencies, and develop your services abroad.

Use Payscout to help grow and streamline your business. Find out more at www.payscout.com

Grow Your Business with International Payment Processing

Payscout is a global payment processing company that specializes in international payments

The demand for mobile international payment processing options is increasing year over year, is your business prepared to meet the demand? According to Allied Market Research, the global mobile payments market is projected to reach $3,388 billion by 2022.

It’s no wonder, while cash has been king for years, many no longer see its usefulness. The preference for quick payment that requires little thought is quickly taking root in consumerist minds. And it isn’t just consumers that benefit, businesses of all shapes and sizes see shortened lines and wait times, an increased likelihood of sale (especially at traditionally cash-based functions, like the farmer’s market), and higher purchase amounts when credit and debit cards are accepted.

Staying equipped to grow your business is easy with Payscout. Payscout is a new-generation merchant services provider, covering six continents, that connects merchants and consumers via credit, debit, ATM, and alternative payment processing. Supporting the entrepreneurial dream one transaction at a time, Payscout offers a holistic solution for International Payment Processing. Payscout has the contacts and expertise to get you quickly set-up to process payments in Brazil, Canada, EU, and the US. A leader in the payment processing industry, they are experienced at navigating foreign compliance issues and maintaining relationships with regulatory agencies. They are also able to provide merchants with offshore incorporation assistance and other services to help ensure there is a strong international merchant presence.

Reach out to Payscout here and go global now!

Merchant Spotlight: Bolinha Restaurant

Payscout is powering payment solutions for one of the oldest and most prestigious restaurants in São Paulo, Brazil: Bolinha.  In this Merchant Spotlight feature, we explore delicious Brazilian feijoada and learn how Payscout is supporting entrepreneurs globally.

Bolinha was founded in 1946 when a taxi driver named Affonso “Bolinha” Paulillo bought a little bar in the Jardins area of São Paulo, Brazil.

The Brazilian restaurant primarily served pizzas and a la carte menu items up until 1952, when Paulillo first served his version of the traditional Brazilian dish, feijoada, to his friends to celebrate the victory of his soccer team.

Feijoada is a dish that consists of a stew of black beans with various types of pork and beef, served with farofa, white rice, braised cabbage, sliced orange, and other accompaniments.  His friends enjoyed the dish so much, it was added to the Wednesday and Saturday menu at Bolinha, and since 1976 it has been served daily.

Bolinha’s feijoada is internationally renowned and prepared in the traditional way, in the same wood burning stove since 1946.  It is served in two versions, traditional and light, with ten different garnishes.  It is recognized and awarded as the best feijoada in Brazil.

Today, Bolinha Restaurant is managed by brothers José Orlando and Paulo Affonso Paulillo, who learned the business from their father, Affonso Paulillo, the original “Bolinha.”

The tradition and culture that are reflected in Bolinha’s cuisine are the same ingredients in Payscout’s recipe for successfully supporting global entrepreneurs:  It all starts with culture.

By engaging international merchants with cultural empathy, by learning about the history and tradition behind Bolinha’s authentic Brazilian fare, Payscout powers the customized solutions that drive continued success for Bolinha’s point-of-sale payments solutions.

So the next time you’re in São Paulo, Brazil, don’t forget to sample the traditional, authentic Brazilian fare at Bolinha Restaurant – and remember that cultural empathy is the key to supporting the entrepreneurial dream.

Going Global? You’ll Need These Multi-Layered Fraud Solutions

Cross-border ecommerce represents a tremendous opportunity for enterprising entrepreneurs, but the opportunity comes with a caveat: Cross-border fraud is on the rise.

Fortunately, emerging technologies are adding advanced layers of fraud protection to facilitate safe, secure transactions that enable entrepreneurs to maximize the opportunity.  The progression is rather simple, really: An entrepreneur selling widgets out of a brick-and-mortar operation realizes the expanded reach an ecommerce site would afford them and they start processing online.  As market share grows and business booms, the prospect of expanding the customer base by going global is too compelling to miss.  But what changes when an entrepreneur wants to start processing (and fulfilling) card-not-present (CNP) transactions across borders?  The biggest obstacle is unquestionably fraud – and the potential solutions are driving a revolution in multi-layered fraud protection technologies.

Consider the technology designed to mitigate fraud in each of the merchant channels described in the example above. At the point-of-sale (POS), EMV (Europay, Mastercard and Visa) technology is already dramatically reducing the risk of identity theft and card/PAN (personal account number) theft.  However, as technology improves at one level, the fraudsters find their new opportunity at the next.  In domestic CNP transactions, technology tools such as address verification services (AVS) and CVV2 are standard here in the United States.  In cross-border commerce, however, the entrepreneurs (and consumers) require added layers of security.

Multi-layered fraud tools (such as Payscout’s fraud solution suite) connect to multiple data sources, such as device fingerprinting and geo-location services, on top of the AVS and CVV2 solutions.  Those added layers of security support more secure transactions, provide further insight and promote quality know-your-customer (KYC) practices.  Cross-border merchants need fraud solutions that create customized fraud algorithms, based on the entrepreneur’s requirements, that connect to multiple data sources.  With these solutions in place, merchants can protect their bottom line – and their margin growth.

These technology tools (and partnering with the right payment processor to provide them) help merchants reduce risk and maintain margin growth.  Payscout is leveraging these tools on a global scale in an effort to achieve its mission to “support the entrepreneurial dream one [secure] transaction at a time.”

Virtual Reality is the Future of Global Ecommerce.

Virtual reality (VR) is poised to revolutionize the way consumers interact with products and services – and Payscout has developed innovative technology to facilitate payment transactions within virtual reality experiences.

Perhaps no technology has elicited more enthusiasm and excitement than the recent rise of VR technology. In the past decade alone, the world has seen major, rapid advancement in the development of VR technology.

The omnipresence of smartphones with high-density displays and 3D graphic capabilities has enabled a generation of lightweight and practical VR devices. Those devices also happen to double as mobile payment technology tools, with transactions via mobile payment technologies predicted to reach 9.9 billion in 2018.

The confluence of these technological and economic advancements – VR technology, global ecommerce and the rise of mobile payment technologies – is poised to revolutionize the omnichannel retail experience.

Nonny de la Pena, the Founder of Emblematic Group, and commonly referenced as, “The Godmother of Virtual Reality,” recently explained the power of VR this way:

“Because VR offers the audience the sensation of ‘being there,’ it creates a visceral connection to the events unfolding in front of the viewer.”

Many analysts are predicting that these visceral connections will translate to commerce in massive and profound ways.

Deloitte predicts VR will be a billion-dollar industry by the end of 2016. Goldman Sachs estimates the global VR and AR market will reach $110 billion by 2020, and a recent analyst report from Citigroup suggests VR/AR will become a $674 billion market by 2025.

So, how can merchants and entrepreneurs gain first-mover advantage in the world of VR, and position themselves to take advantage of these projections?

Payscout has a solution.  

In May 2016, Payscout demoed a simulated VR shopping check-out experience at the 2016 CNP Expo in Orlando. One month later, Payscout showcased a simulated VR debt payment experience at the ACA International Convention in Denver.

But, these were merely simulations. When the time came to build the technology to allow for real-time transactions to take place within a VR experience, the Payscout team was up to task.

In October 2016, Payscout developed a VR commerce solution that enables the purchasing of an embedded product within a VR short film. Working with the Film Antics production company, the team shot a three-minute VR short, with prominently featured product placement. The  feature was followed by the opportunity to purchase the product within a virtual store – all contained within the VR experience – and the transaction  is powered by Payscout’s proprietary payment gateway.

The revolutionary implications of this emerging technology are limitless – from changing the way product placement occurs in feature films to non-profit applications for donations in immersive, 360-degree experiences.

In a recent interview with Multichannel Merchant, Payscout CEO Cleveland Brown stated, “Virtual reality commerce will evolve in different ways than ecommerce did, primarily because it uses a different set of parameters and production requirements. The sophisticated interface will appeal to retailers that offer products which show well in the three-dimensional environment or are popular enough to capture on-demand engagement.”

And, when retailers are ready to capture that engagement, Payscout is the payment processing partner positioned and ready to provide the solution.