Regarding our latest press release focusing on the China UnionPay and ChinaPay integration into our routing gateway PayPipe, we asked our Managing Director of PAY.ON Asia, Dr. Tschangiz Scheybani, how our Asian teams drive the strategic goals of our group and our clients forward. There are some specific requirements showing for the Asia/Pacific region which are totally different to the rest of the world. In the first instant this sounds challenging. But PAY.ON found a way to solve this issue sustainably.
Which role does PAY.ON Asia play within the PAY.ON group?
Tschangiz: PAY.ON Asia is a very important strategic entity within PAY.ON. Actually, Asia is the most attractive region in the world showing enormous growth in e-commerce based on highest demand for western goods. After years on the Asian market PAY.ON Asia is well established and has got brilliant relationships to a multitude of agents and all industry insiders – from acquiring banks, merchant service providers as well as to every relevant merchant. Our clients directly profit from these sources to accelerate their opportunities and business. Beside the Asia/Pacific region PAY.ON Asia is also providing services to the west coast region of the United States of America. Together with our parent company we execute customer requirements smoothly and fast – 24 hours a day and around the world.
What are the challenges for payment providers who want to access the Asian customer base?
Tschangiz: The payment landscape in Asia is structured very heterogeneously. Acquiring banks are conservative and cautious to new business relations. For mission statements personal relationships are in general the most important component in Asia. Further, the payment business is often dominated by local players with monopolistic market positions. However, the interest to push business beyond their borders is mostly low, but growing in regard to the increasing customer demand. A strict domestic thinking is especially characteristic for Japan, Korea, the Philippines, Malaysia and China. Because of this mindset the Asian ECOM Payment Processing market drags behind 5-10 years regarding evolution as well as implementation of best practice compared to the western countries.
Dr. Tschangiz Scheybani, Managing Director of PAY.ON Asia
What are the key factors to be successful in Asia?
Tschangiz: Beside strategic partners as PAY.ON, it is advantageous for service providers to operate a local entity with local employees in the target markets to build up the necessary trust. Also patience, sustainability and the establishment of a local touch are the requirements to be successful on Asian markets. A convincing argumentation and a strong productivity are also very important. The latter is especially expected in excessive amount from western companies. Important: Also the requirements of professional sales teams in Asia are special. The preferred incentive models are mostly short-term oriented.
Relaying on its business network and processing properties PAY.ON leads up Asian MSPs to connect them with western, very well-known MSPs which are seeking a local processing unit. As the Asian markets are very price sensitive, a high degree of operational skills and flexibility is needed to be successful in the specific markets in terms of local competition, suitable payment methods for certain merchant segments and the respective role of acquirers.
Why are the PAY.ON services able to solve these challenges?
Tschangiz: The market fragmentation can be overcome in the same way as in Europe where payment gateways serve as an access point to all important payment schemes. As a global processor PAY.ON´s services are an accelerator or rather a distributor for all – for the clients right matching – international payment methods. With its white label PSP platform PaySourcing and the routing gateway PayPipe clients are automatically connected to all important payment participants and available payment schemes worldwide. Actually several hundred payment service providers, acquirers, merchant service providers and financial institutions are using one or more of PAY.ON´s services. Doing so, we install a promptly access to hundreds of millions of Asian consumers for our clients around the globe – e.g. with our new China UnionPay and ChinaPay connections.
What advantages does PAY.ON Asia offer through its local presence?
Tschangiz: PAY.ON´s procedure as processing technology provider in Asia is similar to the western markets. The customer benefit stands in the foreground. The difference: PAY.ON Asia has to provide more effort in training and support activities to raise Asian market participants up to western payment industry standards. Regarding this, our clients directly profit from our long experience and deep business relationships in the Asia/Pacific region.