SMEs are fine-tuning their focus on e-commerce
solutions to increase international transactions revenue, research
by WorldPay has found.
The payment processor surveyed SME managers at
an e-commerce expo and found that almost two-thirds (59%) already
offered e-commerce services as an additional revenue stream.
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This would provide payment processors with a
new revenue potential as well. But it seems there needs to be a
better merchant education.
According to Sage Pay, more and more online
retailers use 3D Secure as a prevention tool for fraud – but about
40% of merchants in the UK are still reluctant to implement 3D
Secure because they fear the extra step in check outs will lead
customers to cancel their purchase.
On the consumer side, a separate research
paper by IT company Avira, 70% of consumers either do not shop at
all online or do it, but are worried about their financial
security.
Making online sales and purchases simpler for
customers and more secure for merchants is therefore essential-
especially considering the value of online purchases has risen by
14% to £5.2bn ($8.1bn) in the twelve months to August, according to
research by Capgemini.
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By GlobalData
Other key findings of the
WorldPay report included:
- Of the 59% of e-commerce service providers,
two-thirds admitted offering services abroad were a challenge, but
that the revenue potential of revenues from cross-border
transactions was “substantial”. Identifying fraudulent transactions
and driving traffic to the website were cited as the main
challenges in launching an e-commerce service, (59% and 29%
respectively). - For about 25% of those offering e-commerce
services, between revenue from overseas payments make up between
30-40% of their income. - The majority (84%) saw a “significant” or at
least slight increase in revenue and profit since they began
offering e-commerce services. - 74% of SMEs are expecting to take their
services online within the next six months, and 78% say they want
to do so because they want to sell outside of the UK.
