The 2016 CNP Expo returned to Orlando, Florida, this week, attracting 1,100 attendees across the entire card not present payment chain, including payment providers, processors, acquirers, independent sales organizations, fraud prevention solutions and major online merchants.
This year’s show was hosted by Loews Royal Pacific Resort, but despite the change of location, the CNP Expo once again delivered on the key ingredients that make this an must-attend event; insightful sessions, live demos, enlightening keynotes, abundant networking opportunities, and a healthy dose of warm Floridian sunshine.
Michael Doron, Managing Director of PAY.ON America, was invited to participate in the panel discussion “Crossing the Rubicon: Selling cross-border in Europe” alongside representatives from Paysafe, Vantiv, and Computop. Although cross-border eCommerce topics regularly feature on the agenda at the CNP Expo, the shifting regulatory environment in Europe got some extra attention this year – particularly timely given PAY.ON’s recently published white paper ‘Driving change with PSD2 and the MIF Regulation: Creating opportunity in Europe‘.
European Regulation and Cross-border eCommerce in Europe
Moderated by John Faherty from First Data Omnipay, the panel kicked off with a review of the new EU regulations on interchange, which came into effect on December 9th 2015. The MIF Regulation sets interchange fee caps at 0.2% of transaction value for cross-border debit card transactions, and 0.3% for cross-border credit cards transactions, which could result in lost revenues of EUR 5-6 billion for issuers. Acquirers and merchants, however, stand to benefit through the redistribution of revenues. According to the panelists, competition in the acquiring market is likely to increase due to increased transparency in pricing.
With the key elements of the MIF Regulation – and their likely impact upon key industry players – established, the panelists then shared their views on the key considerations for merchants looking to take advantage of the opportunities created by European regulation. On the topic of payment methods, merchants were urged to consider both cultural factors and also spending habits and behavior. Despite the common framework of SEPA payments within Europe, for example, there are still differences in payment preferences between countries. Look no further than the popularity of bank transfer methods of payment in Germany or the Netherlands, compared with the more card-dominated landscape in the UK. Merchant need to be wary of the risks associated with different payment methods, and select payment partners that are the most relevant and cost-effective based on these risks.
On the topic of payment methods, the panel emphasized that merchants seeking to exploit cross-border opportunities – both in Europe and generally – need to think like consumers. Specifically, the payment experience of end user, payment preferences as they relate to the type of purchase. They also emphasized the importance of an understanding of difference cultures and the value of utilizing a technology partner that can do the ‘heavy lifting.’
The question of working with partners to take advantage of cross-border opportunities came out strongly during the panel discussion, and Michael Doron underlined the fact that in the ‘build vs buy’ argument, where ‘buy’ was increasingly winning out, it was particularly important to work with an agnostic partner able to provide payment service providers with choice. The choice needed to enable the payment options necessary in the diverse European market, the choice of card acquirers needed, and the ability to stay in control and optimize a business in response to changing European regulation.
Recognizing industry leaders in the card-not-present space
Capping off a successful show for Michael Doron and the rest of the team, PAY.ON also collected the award for Best eCommerce Platform/Gateway at the CNP Awards. The awards recognize industry leaders in the card not present space, and the judges selected PAY.ON’s eCommerce Payments solutions based on the ability to support payment providers and merchants engaged in cross-border eCommerce with first-class open payment technology.