Tricia Lines Hill of First Atlantic Commerce believes payment companies need to diversify and accept many forms of online payments to succeed in today’s anti-fraud environment
ahead of the industrialised world in terms of alterna-tive payment method acceptance because credit card penetration is traditionally low in these markets, es-pecially within South America and China. However, these markets were also slower to adopt online sales in general.
Today, merchants are embracing all sorts of alter-native payment methods in an efort to acquire and retain their customers. It is more a question of which alternative payment methods to implement as op-posed to whether or not to use them at all.
Consumers and merchants are driving the alterna-tive payment option market as they search for new ways to pay and get paid. For both, alternative pay-ment ofers convenience, fexibility and security. Mer-chants are fnding that ofering alternative payment options can lower their overall transaction costs, in-crease conversions and create new revenue streams, while reducing charge-backs and fraudulent activity.
Consumers want the merchant to accept the pay-ment method they want to use. We know that diferent demographic groups tend to gravitate toward difer-ent payment options. And while alternative payment methods certainly appeal to the under-banked and un-banked for obvious reasons, all types of consumers in-cluding those that hold credit cards, are adopting con-venient alternative payment methods.
The economic downturn has also contributed to al-ternative payments use as credit cardholders are more conscious of their credit-based spending.
As expected, online gaming operators and their players are even more driven to alternative payment platforms. The reasons are varied from the basic motive of anonymity, player profles, and of course, the 7995-coded transaction and decline issues. Nev-ertheless, credit cards will continue to be crucial to an online payment strategy, and, even though “im-proving economy will lead some consumers back to credit card products, which may slow the growth of alternative payments”, according to Javelin Strategy & Research, alternative payments are also here to stay
Working with the right payment provider
As an example, if merchants want to capture the Chinese market, they must support China Union-Pay (debit) since it is the predominant payment card in China. Similarly, debit card use in Germany and Poland is much higher than credit card usage so mer-chants doing business in these geographies must have access to the local payment brands and currencies (local currency support increases the capture rate in