As e-commerce expands beyond local borders, it brings the challenge of cross-border payments. These transactions involve multiple currencies, diverse payment methods, and varying regulations, necessitating robust payment systems and solutions. Efficient cross-border payments are crucial for the seamless operation of global e-commerce, ensuring that businesses can reach international customers and consumers can access products from around the world.
Again we see the rather logical intersection of e-commerce and cross-border payments, this time through an enhanced service from BlueSnap, the payment gateway provider based in Massachusetts. It seems that the marketplace payments platform has been bulked up a bit to better handle vendor onboarding, payments flexibility and most importantly, cross-border capabilities.
Those that wish to manage (or join) a marketplace will typically find challenges in sub-merchant setup, payments acceptance, and of course, access to foreign customers. The new BlueSnap capabilities purport to make these things much simpler.
‘BlueSnap’s Marketplaces solution addresses these barriers. It enables businesses to automatically onboard thousands of vendors in a compliant manner. Companies can set the transaction splits, payment schedule and payout method, and then BlueSnap handles the distribution of funds. In addition, it provides thorough reporting so marketplaces can analyze trends and capitalize on opportunities…”BlueSnap’s Marketplaces solution’s easy API has enabled us to launch a marketplace that covers new products and markets, all without the unpredictable expenses and technical difficulties of starting from scratch,” said Tariq Farid, CEO of Edible Arrangements. “The marketplace is becoming a valuable new revenue stream that builds upon our reputation for delivering delicious, visually stunning foods.” ‘
Given the cross-border implications, the solution apparently reduces FX costs by localizing payments (suggesting correspondent banking relationships in X countries). This is also a selling advantage: foreign customers prefer to pay in local currency, so acceptance of Thai Baht is better than making them pay in USD.
Another interesting thing is the existence of a fraud management solution within the new enhanced service. Based on a quick web search, we believe that this is through a partnership with Kount, one of the e-commerce fraud management platforms on the marketplace. So the drumbeat swells for e-commerce and easier cross-border experiences.
‘”Ecommerce global marketplaces used to be unachievable for all but the biggest brands and best-funded tech companies,” said Manny Pansa, SVP of Product at BlueSnap. “We built the Marketplaces solution to help level the playing field. We think businesses have an opportunity to bring in complementary brands and products that customers would otherwise buy elsewhere. Retailers have already made massive investments in branding, design and ecommerce traffic. BlueSnap Marketplaces solutions can help them get a much bigger return on those investments.”‘
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group