The Paypers interview with CEO Markus Rinderer about the success of Alternative Payment Methods

By Annett van de Bunt - Head of Marketing on 8. September 2014 in Market Insights


PAY.ON CEO Markus Rinderer discussed alternative payment methods with The Paypers and the role they play in cross-border ecommerce.


Following some extracts of the interview:

In your opinion, how do alternative payments contribute to the development of the cross-border sector?

Markus Rinderer: In today’s cross-border environment, alternative payment methods are a guarantee of growth and success in ecommerce. 55-60% of global ecommerce transactions are completed using alternative payment methods, and this figure continues to rise.


There are basically two areas of consideration for merchants. Firstly, the target countries where expansion is to take place, and secondly, how to best serve foreign cross-border customers.


Take the USA as an example. For merchants expanding into North America, the payment landscape, with its credit and debit cards, and e-wallets like PayPal, is largely uniform. But for US merchants with customers from a country like China, the integration of popular Chinese payment methods and the inclusion of suitable acquiring partners forms the basis for increased turnover, and failure to account for this leads to a higher bounce rate.


Central and Eastern Europe offers a further example. Few continents are as challenging as Europe when it comes to payments. Created in August 2014, SEPAis the first cross-border standard for bank transfers. But basically, each and every country has different preferred payment methods. The challenge of optimizing payment processes to meet this situation applies equally to European and non-European merchants.


PAY.ON has tackled this problem with COPYandPAY, which enables easy and comprehensive integration of payment methods into the payment process. More than 380 connected providers and their payment methods are available worldwide. Active Payment Method Selectionalso makes it possible to combine payment methods with risk groups, further reducing fraud and chargebacks.


The key advice merchants usually get when they expand internationally is “go global, think local”. What is the importance of a suitable payments set-up per country/region in this context? How can this set-up boost conversion rates?

Markus Rinderer: The key to success, as mentioned, is taking account of local situations. Simply by including the three most important local payment methods, conversion rates can be increased by around 14%. For globally-oriented merchants, choosing the right payment technology partner is therefore paramount when it comes to installing connection and integration processes on demand in a technically simple and cost-effective way. As a global white-label infrastructure provider for payment service providers, independent sales organizations and Acquirers, PAY.ON has proven it can fulfill these requirements.


A tremendous growth in cross-border shopping is currently registered in countries like Russia, China, UK etc. Do you think the explosion of cross-border ecommerce is a threat for local merchants? What should a foreign retailer do to conquer such markets?

Markus Rinderer: To answer the first question, no – as long local merchants see cross-border ecommerce as an opportunity on their side. Firstly, it offers them the chance to generate foreign customers themselves, meaning higher turnover. To achieve this, the payment process has to be adapted accordingly, which nowadays is quick and easy to do. Secondly, it can be beneficial for local merchants to remember their strengths – such as customer service and proximity to customers – and continue to build upon them.


For foreign merchants, international expansion has never been as easy as it is today, because of the fast technical availability of local alternative payment methods and their easy integration into the payment process. In fact, the only obstacles that do exist, if there are any, are of an emotional nature on the consumer side, and in the set-up of efficient logistical processes.



Annett van de Bunt - Head of Marketing

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Annett van de Bunt - Head of MarketingView all posts by Annett van de Bunt - Head of Marketing


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