Global Electronic Payment Growth Rates ’12-’18
Europe is expected to grow 55% between 2012 and 2018 to $55B in Payment Transactions; Latin America 69% in the same timeframe to $22B in transactions and Canada at 38% to $11B. Those are significant growth numbers.
Most Customers Are Not In The US
95% of world’s customers are outside the US and the merchants are trying to reach them either through e-commerce avenues or through brick and mortar locations. These customers are SMB customers as well….over 300,000 business in the US export internationally and 97.7% of those are SMB…our bread and butter merchant type. They want to be able to provide a single service to all their customers and with all their locations worldwide where possible and payments is one of those services.
Banks, Merchants, and Vendors are Evolving
The POS, software, and ISV companies also have no boundaries and it benefits the service provider and processor to be able to follow them to their foreign markets. To make it better, there is a trend of expanding acceptance of third party providers creating a less bank-centric attitude in many countries.
Cost of Processing
The US market is the most competitive country in the world with some of the highest costs.
Newly opened countries like Mexico have much better margins with lower costs.
Over the last decade we’ve watched profit margins considerably shrink in the US market due to increased competition, market saturation, technology, and a myriad of other complex reasons. Many other countries, like Mexico for instance, are still in the early stages of market maturation and with that comes decreased costs, higher margins, and an overall sense of welcoming competition and choice vs competitive burnout that can frequently happen in the US to merchants.