1、Insights into Payments and BeyondGlobal Ecommerce Report 2025Tackling Challenges and International Expansion with Strategic PartnershipsSupporting Partners:Key Media Partners:THE PAYPERS|Global EcommErcE rEport 2025RELEASE VERSION 1.0DECEMBER 2024COPYRIGHT THE PAYPERS BVALL RIGHTS RESERVEDTEL:+31 20

2、 893 4315 FAX:+31 20 658 0671MAIL:EDITORTHEPAYPERS.COMContact usFor inquiries on editorial opportunities please contact:Email:To subscribe to our newsletters,click hereFor general advertising information,contact:Mihaela MihailaEmail:Global Ecommerce Report 20253THE PAYPERS|Global EcommErcE rEport 20

3、25Welcome to the first edition of the Global Ecommerce Report 2025 Tackling Challenges and International Expansion with Strategic Partnerships!This issue is a new iteration of the Cross-Border Payments and Ecommerce Report,which The Paypers has published regularly over the last five years.The decisi

4、on to change gears and start on a new path aligns with the noticeable shift that ecommerce itself has undergone.More than ever before,we are living in an era of global ecommerce,an age of digitalisation and hyper-personalisation,where global ecommerce is no longer synonymous with merely selling acro

5、ss borders.Instead,it has become a truly global experience where customer choice sets the pace,and technology makes it happen.With just a few clicks,you can order a product from a merchant across the globe and have it delivered to you in a matter of days,and the shopping journey is catered to the cu

6、stomer in all possible ways.Each website or app interaction is analysed by leveraging artificial intelligence(AI)and machine learning(ML)algorithms to decode user behaviour,tailor recommendations,and craft a personalised shopping experience.The payment stage is also carefully optimised to present cu

7、stomers with familiar payment options that align with their preferences.Rewards and loyalty programmes further build customer retention by incentivising shoppers to come back.The global ecommerce market is constantly changing and reinventing itself and is anticipated to reach USD 4.12 trillion in 20

8、24,according to Statista.With a projected annual growth rate(CAGR 2024-2029)of 9.49%,the market value is expected to reach USD 6.48 trillion by 2029.Moreover,with internet access and adoption on an upward trajectory,the same source indicates that the number of users will likely amount to 3.6 billion

9、 by 2029.In this era of change,staying informed about trends,new payment technologies,and growth markets is essential for businesses seeking to thrive,not just survive.The Global Ecommerce Report 2025 Tackling Challenges and International Expansion with Strategic Partnerships serves as a guide to na

10、vigating this complex landscape.This new edition compiles insights from key stakeholders,such as top industry consultants,merchants,and payment service providers(PSPs),to offer answers to pressing questions and shed light on winning strategies.How growth markets are rewriting the rules of global eco

11、mmerce Growth markets,spanning Africa,Asia-Pacific,and Latin America,are defined by rapid economic development,an expanding middle class,and high internet penetration.This offers the perfect canvas for businesses interested in broadening their customer base.Above anything,these markets are shaping h

12、ow merchants looking to expand across borders think about localisation strategies,logistics,local regulations,and customer experience in a bid to better position themselves for success in a shifting global landscape.Businesses must understand payment landscapes,customer behaviours,and the regulatory

13、 environment of each market which is why staying informed and forging partnerships with the right solution providers are key steps.ForewordMirela CiobanuLead Editor at The PaypersDiana LupuleacSenior Editor at The Paypers4THE PAYPERS|Global EcommErcE rEport 2025The Paypers Global Ecommerce Report 20

14、25 introduces a brand-new infographic showcasing six growth markets:Brazil,Mexico,Nigeria,South Africa,Vietnam,and the Philippines.Each one is analysed by covering significant local developments,including trends in ecommerce,popular payment methods,and customer behaviours.We also address regulatory

15、aspects impacting fraud,ecommerce,and payments,along with anticipated future developments.Moreover,our research includes overviews of relevant payment methods per market and,in partnership with Worldpay,stats regarding ecommerce market size projections,payment method shares,and POS card scheme share

16、s making it a useful compass for companies interested in expanding their reach in these regions.Scaling international sales with payment orchestrationManaging complex payments is one of the most important pain points for businesses looking to expand internationally.Merchants face an uphill battle fr

17、om catering to diverse payment preferences across various markets and handling multiple currencies to adhering to cross-border regulations and addressing the fraud and security risks associated with global ecommerce.Additionally,the fragmented payment ecosystem resulting from managing multiple PSPs,

18、gateways,and processors adds further complexity.Although not a new technology,payment orchestration is evolving into a critical solution for addressing these payment challenges,becoming an essential tool for merchants.Orchestration layers integrate with multiple PSPs to allow merchants to offer regi

19、on-specific payment methods,and help them reduce cart abandonment and increase conversion rates.They also dynamically route transactions to the most suitable PSP based on specific factors such as success rates and transaction costs,enabling merchants to accept payments in local currencies whilst adh

20、ering to regional and global compliance standards.Some payment orchestration providers also offer consolidated data from multiple PSPs into a single dashboard,enabling merchants to gain insights into payment trends,customer behaviours,and transaction success rates information that can help guide bus

21、iness decisions.With fraud being a persistent threat for merchants,some orchestration layers also incorporate proprietary or network tokenization or both to secure sensitive payment data.What is more,smart routing can implement region-specific fraud detection measures by analysing common fraud patte

22、rns in each geographic area.Some payment orchestrators also provide additional fraud detection services,enabling businesses to scale internationally without compromising security or customer trust.To offer merchants a clear view of the payment orchestration landscape,the Global Ecommerce Report 2025

23、 includes the second edition of an infographic that sheds light on the capabilities of relevant payment orchestration providers worldwide.This year,the research has been expanded to include a regional overview of where these providers offer their services.The infographic serves both as an educationa

24、l resource and a starting point for businesses seeking partners to help them manage their payment stack when expanding internationally.How this report helps you stay one step aheadAs the global ecommerce market continues to evolve,the potential for businesses to succeed globally has never been great

25、er.Merchants can identify and tap into new growth markets early on,quickly build brand awareness,avoid competition,connect with previously unreachable consumers,and increase profits.These opportunities also come with several complex challenges,including increased competition,payment complexities,log

26、istics and supply chain hurdles(such as returns management and cross-border shipping),fraud risks,compliance with local regulations,fees,ever-changing customer demand,and localisation.5THE PAYPERS|Global EcommErcE rEport 2025To help you stay ahead of the competition,the Global Ecommerce Report 2025

27、features insights on these pressing challenges and topics such as industry trends,foreign exchange,domestic card payment systems,payment optimisation and orchestration,growth markets,and regulatory initiatives.Acknowledgments We extend our gratitude to our collaborators for their valuable contributi

28、ons to this report they are APEXX,B,BR-DGE,BridgerPay,CMSPI,Convera,Ecommpay,Edgar,Dunn&Company,Euromonitor International,Fuse,IXOPAY,Lazada,Mastercard Gateway,Merchant Risk Council(MRC),Nexway,Nuvei,PPRO,Redbridge Debt and Treasury Advisory,Unlimit,W,Worldline,and Worldpay.Additionally,a special th

29、ank you goes to The Paypers team for all their work in making this report possible.Without further ado,we invite you to read the Global Ecommerce Report 2025 Tackling Challenges and International Expansion with Strategic Partnerships!6THE PAYPERS|Global EcommErcE rEport 2025Table of ContentsForeword

30、The Global Ecommerce Playbook:Understanding the Current MarketThe Digital Age:How Emerging Trends Are Driving Ecommerce Growth|Mark Beresford,Edgar,Dunn&CompanyWhats Driving the New Generation of Domestic Card Payment Schemes|Martha Southall,CMSPIThe Regulatory Tipping Point:Balancing Protection wit

31、h Industry Growth|Keith Briscoe,MRCKeeping Pace with Change:Unlocking Potential with Strategic PartnersSpeed up Time to Market,Increase Conversions,and Optimise the Customer JourneyPayment Trends and Developments Shaping Global Ecommerce|Interview with Irene Skrynova,UnlimitNavigating the Complexiti

32、es of Global Ecommerce:Why a Tailored Approach Is Essential|NexwayUnlocking Business Growth Through Optimised Payments|Tiffany Hecker,WorldpayDecoding Data to Increase Authorisation Rates|Maria Parpou,Mastercard GatewayThe FX OpportunityFrom Local to Global:How FX Innovation Is Driving Ecommerce Exp

33、ansion|Alex Lawrence,ConveraStrategies to Overcome Foreign Exchange Challenges and Boost Merchant Revenue|Gabriel Lucas,Redbridge Debt and Treasury AdvisoryImproving Performance with Payment OrchestrationHow Payment Orchestration Helps Conquer Complex Merchant Challenges|Gabriel Lucas and Chaira Mek

34、kaoui,Redbridge Debt and Treasury AdvisoryHow Payment Orchestration Maximises Efficiency in Ecommerce|Interview with Brady Harris,IXOPAYCan Payment Orchestration Solve the Interoperability Challenge?|Brian Coburn,BR-DGEBridging the Gap:How BridgerPays Omnichannel Orchestration Platform Transforms Pa

35、yments|Ran Cohen,BridgerPayOverview of Payment Orchestration ProvidersIntroductionPayment Orchestration Providers Key Capabilities(Infographic)Payment Orchestration Providers Regional Overview(Infographic)Payment Trends and Opportunities in Growth MarketsStaying Ahead in the Global Ecommerce Race|Gu

36、illaume Tournand,WorldlineGrowth and Innovation:Retail Ecommerce in Asia-Pacific|Bob Hoyler,Euromonitor InternationalUnlocking LATAMs Payment Potential:Trends and Challenges for Merchant Success|Interview with Therese Hudak,PPROPositioning Your Business for Success in MEAs Fast-Growing Ecommerce Mar

37、ket|Imri Meir,NuveiThe Untapped Potential of Payments in MENA|George Davis,Fuse3 8 9 16 18 21 22 23 25 27 29 31 32 34 36 37 40 42 44 46 47 48 50 51 52 54 56 58 60 7THE PAYPERS|Global EcommErcE rEport 2025Table of ContentsOverview of Key Growth MarketsIntroductionBrazil(Infographic)Mexico(Infographic

38、)Nigeria(Infographic)South Africa(Infographic)The Philippines(Infographic)Vietnam(Infographic)Payment Shifts in Travel,Retail,and GamingTravel Marketplace Expansion Payment Considerations for New Market Entry|Interview with Ajay Moti,BHow GenAI Is Paving the Way for a New Era of Ecommerce|Interview

39、with James Dong,Lazada Group and Daraz GroupHow New Generations Are Shaping Payments in the Gaming Industry|Interview with Elena Emelyanova,WCompany Snapshots62 63 64 66 68 70 72 74 76 77 79 81 82 Trends and Players Shaping the Payments IndustryThe Global Ecommerce Playbook:Understanding the Current

40、 Market9THE PAYPERS|Global EcommErcE rEport 2025The Digital Age:How Emerging Trends Are Driving Ecommerce GrowthMark Beresford is a Director at Edgar,Dunn&Company,an independent global payments consultancy whose expertise includes M&A due diligence,legal and regulatory support across the payment eco

41、system,fintech,mobile payments,digitalisation of retail and corporate payments,and financial services.Mark Beresford Director Edgar,Dunn&CompanyThe digital age has transformed how customers shop and consume goods and services.Ecommerce,once a niche market,has gained popularity,reshaping the retail l

42、andscape worldwide.Driven by technological advancements,changing consumer behaviour,and global economic trends,ecommerce is experiencing unprecedented growth.This article will explore the emerging trends driving the digital shift and its profound impact on the global digital economy.The total transa

43、ction value of global ecommerce is expected to grow by 10%CAGR from 2024 to 2030 to USD 13 trillion,as illustrated in Figure 1.Figure 1As technology evolves,we can expect diverse digital payment methods to emerge.The growth of alternative payment methods(APMs)in the last 15 years has been extraordin

44、ary,caused by a diverse set of local circumstances,funding sources,technologies,and use cases.The methods that become most popular will depend on consumer preferences,technological advancements,regulatory regimes,and merchant adoption.The future of ecommerce will eliminate the traditional plastic pa

45、yment card.Consumers already pay for products and services online using mobile wallets such as Apple Pay,Google Pay,and Samsung Pay.Today,these may be containers for a payment card account,however,the expectation for future ecommerce preference will be driven by the convergence of Open Banking and r

46、eal-time payments(RTPs).In 2023,APMs accounted for around 50%of online purchases,compared to card payments,and in 2024 they are projected to amount to 66%of the total global ecommerce value.Furthermore,they are predicted to expand and account for 82%of the total global ecommerce value by 2030 as ill

47、ustrated in Figure 2.Edgar,Dunn&Company10THE PAYPERS|Global EcommErcE rEport 2025Figure 2In 2023-2024,industry experts acknowledge that the global payments landscape is transforming,driven by the convergence of Open Banking and RTPs.As consumers demand faster,more convenient,and personalised financi

48、al services,these technologies reshape how they transact and interact with digital money.From emerging markets to established economies,the adoption of Open Banking and real-time account-to-account(A2A)payments is accelerating.Over the next five years,financial services are expected to become more a

49、ccessible,inclusive,and innovative.As the ecommerce industry is changing rapidly,by 2030 we will experience a period of unprecedented innovation and disruption,far surpassing the advancements of the past 15 years.Payments are only a part of that change.Some technologies that exist today,such as virt

50、ual and augmented reality(VR and AR)and artificial intelligence(AI),will play an important role in shaping the consumers payment experience and shopping journey in the future.The emerging trends and drivers of change that will impact ecommerce include:Localisation and personalisation,Open Banking an

51、d real-time A2A payments,Payment orchestration,Regulators,Tokenization,VR,AR,and AI.The customers online shopping journey typically follows five stages(see Figure 3).We will examine these stages through the ecommerce experience to see where and how these emerging trends impact the journey.Figure 3Th

52、e product discovery stageThe consumer journey typically begins with product discovery.This is the initial stage,where a potential customer becomes aware of a product or service that meets their needs or interests.This can happen in several ways,either through online search,social media,email marketi

53、ng,blogs and articles,and in-store experiences.The starting point for product discovery is rarely the same.11THE PAYPERS|Global EcommErcE rEport 2025VR and AR are expected to transform online shopping,making it more immersive,personalised,and convenient.Customers can virtually try on clothes,accesso

54、ries,or even makeup,getting a realistic sense of how products will look on them.AR can allow customers to view products in 3D from different angles and environments,giving them a better understanding of their size,shape,and features.Anyone buying via Amazon or Ikea can visualise a product or a piece

55、 of furniture in their own home.AI algorithms can analyse large amounts of customer data to provide highly personalised product recommendations.You can experience this now with Amazons Rufus,an AI-powered shopping assistant that helps customers find the products theyre looking for.Essentially,its a

56、chatbot integrated into Amazons website and app that can answer questions from consumers and provide recommendations.Customers can ask Rufus anything related to shopping,such as What are the best laptops for students?or Show me gluten-free protein powders.Rufus makes recommendations using its extens

57、ive knowledge of Amazons product catalogue and customer reviews.Figure 4:Rufus at workRufus is expected to make shopping a more efficient and enjoyable experience by providing personalised assistance and recommendations.This is only just the beginning of the use of AI.At Edgar,Dunn&Company(EDC),as p

58、art of our client engagement,we interviewed an online fashion retailer operating across Southeast Asia.This merchant uses AI to drive specific consumer checkout behaviours,detailed more in the checkout stage below.The add to cart stageCultural nuances and regional preferences can also play a role in

59、 the add to cart or add to shopping basket stage.In certain parts of the US,cart is more commonly used,while basket might be more prevalent in other regions.Ultimately,the decision to use cart or basket is often made to provide a more localised and user-friendly customer experience.By using familiar

60、 and culturally relevant terms,ecommerce platforms can improve customer satisfaction and engagement.Localisation in ecommerce has become extremely sophisticated when adapting a website or app to meet specific customer needs and preferences in different regions or countries.Translating the web shop o

61、r app into the native language of the target market is a basic requirement.Other important aspects are using the local currency for pricing and payments,considering cultural differences in design,colours,imagery,and messaging,and ensuring smooth shipping and delivery processes that comply with local

62、 regulations.One EDC client refunded customers in cash when the original payment method was made in cash.In this use case,the customer paid at the store when collecting a product reserved online.If the customer returned an unwanted item,the refund was sent by courier(as cash)to the customers address

63、.This was one of the most complex and expensive operations,riddled with operational inefficiencies,especially when the customer was not at home.12THE PAYPERS|Global EcommErcE rEport 2025Localisation also involves including payment methods commonly used in the target market.Dont offer iDEAL to a Chin

64、ese consumer or Alipay to a Dutch consumer.Providing customer support in the local language and time zone is also expected.Lastly,adhering to local laws and regulations,such as data privacy and consumer protection,adds further complexity to operating in multiple markets,yet this will differentiate a

65、n online shop in a very crowded and competitive ecommerce market.As consumers spend more time on social media,shoppable ads allow them to learn about and purchase products through adverts.Traditional online advertising redirects consumers to a brands website,whereas shoppable ads allow consumers to

66、complete their purchase without leaving the social media app.This effectively squeezes the add to cart,checkout,and purchase stages into a single purchase stage of the ecommerce journey as shown in Figure 5.Figure 5Shoppable ads are an important part of social commerce and there is a wide range of s

67、urvey data on their effectiveness.According to marketing firm Acxiom,60%to 70%of consumers who use shoppable ads say these ads enable them to buy products and services more efficiently.The checkout stageThe checkout stage is often mistakenly seen by merchants as the final stage of the ecommerce cust

68、omer journey.While it may be where the customer confirms their order and provides their payment information,it is only halfway through the journey.The customer must also enter their shipping address,including their name,and checks happen in the background to ensure information accuracy.Payment walle

69、ts streamline the checkout process in ecommerce by offering several key benefits to consumers,and this is what click to pay from main card schemes is doing.PayPal,Apple Pay,Google Pay,Pix,GrabPay,Amazon Pay,Bizum,Wero,and many other payment wallet solutions all securely store the shipping address an

70、d customers payment card details,eliminating the need to manually enter them each time the customer is at the checkout stage.This saves time and reduces the risk of errors.We expect to see more wallets integrate loyalty and rewards programmes powered by account issuers,merchants,or coalition program

71、mes allowing customers to earn points or other benefits for their purchases or redeem rewards when transacting.These programmes will remove the need for customers to remember which one is applicable for which brand and retailer.AI will analyse customer data to determine the most relevant loyalty pro

72、grammes and payment methods,based on their preferences,spending habits,and purchase history.Contextual payments refer to payment journeys tailored to a specific situation or the context of a transaction.One familiar example is the Uber experience,as the Uber payment is contextual.13THE PAYPERS|Globa

73、l EcommErcE rEport 2025Other examples may include an online retailer offering different payment options based on the purchased product.They might offer instalment payments for high-value items,or flexible payment options for subscriptions.Another instance would be customer preference-based payments,

74、where AI-powered systems can analyse customer data to determine their preferred payment methods and offer personalised recommendations.Online fashion retailer Zalora,which operates across Singapore,Malaysia,the Philippines,Indonesia,Hong Kong,and Taiwan,uses AI to drive specific consumer checkout be

75、haviours based on previous shopping journeys.This helps the online retailer have more efficient back-end operations by leveraging data from the AI-powered customer service chatbot to provide seamless and personalised customer support.The purchase stageThe consumers decision to purchase online can be

76、 highly emotional.It involves weighing factors like price,quality,and perceived value.Retailers can implement several strategies to make this process smoother.Today,they enhance the shopping experience by personalising recommendations,prioritising trust and security,optimising user experience,provid

77、ing excellent customer support,and offering flexible payment options.These strategies help customers feel more confident and comfortable.One of the current challenges for consumers and online merchants is making the right choice that benefits them both,as the number of APMs is constantly growing.Wit

78、hin each payment category,such as international or domestic payment cards,mobile wallets,bank transfers,BNPL,and cryptocurrencies,countless specific payment methods are available in different regions and countries.Cash on delivery will be history by 2030,while new payment methods are constantly emer

79、ging,making it challenging for merchants and payment service providers(PSPs).Based on recent research conducted by EDC,77%of the wallet transaction value in APAC is funded by a bank account,98%are by payment cards in North America,LATAM,MEA,and 88%in Europe.By 2030,the preference of consumers from t

80、he West to fund digital wallets with a payment card is expected to shift towards bank account funding.The digital wallet transaction value in the West will be 24%to 30%funded by bank accounts,an increase from the current 2%to 12%.This will be driven by increased Open Banking and A2A RTP adoption.In

81、the last five years,ecommerce has seen the emergence of third-party payment orchestration providers(POPs),which can be a valuable tool for merchants.It is not necessarily a new concept,as over 10-15 years ago it was happening within the merchants IT department,where they were building multi-acquirin

82、g or multi-gateway solutions.However,with new APMs gaining a share of the consumers wallet,especially BNPL,there was a need to centralise and manage multiple payment methods,gateways,and acquirers.What payment orchestration delivers today is a small portion of what they will in the next five years.W

83、e believe POPs will consolidate,as too many today serve too few markets or only specific verticals.The power of a POP will be data their capabilities will expand a hundredfold once their product roadmaps include a unified data view,reporting and reconciliation,dispute management,and fraud prevention

84、.Whether a POP needs to serve both online and in-store transactions is debatable,and there will not be a truly omnichannel POP within this timeframe.Payment orchestration can give valuable data insights into customer behaviour and payment preferences,and combining payment orchestration with AI will

85、offer merchants significant benefits.AI will analyse customer data to recommend the most suitable payment methods based on their preferences,purchase history,and location.AI algorithms will be able to detect and prevent fraudulent transactions more effectively,reducing chargeback rates,and protectin

86、g merchants from financial losses.AI will also dynamically route transactions to the most efficient payment gateways based on factors like transaction volume,processing speed,authorisation rates,and cost.14THE PAYPERS|Global EcommErcE rEport 2025POPs will soon leverage the transaction data across ma

87、ny markets and merchant verticals and combine it with AI decisioning.Today,no provider combines payment orchestration with AI to empower ecommerce merchants to make data-driven decisions,optimise their operations,and provide a superior customer experience.The third main change theme in the purchase

88、stage of the ecommerce merchant will be network tokens,such as those from Visa or Mastercard.They will offer several benefits,and other payment methods beyond cards,such as A2A payments,will adopt their own version of network tokens.The current challenge with network tokens is that they are not full

89、y rolled out.As technology advances and digital payments become more prevalent,network tokens will become even more ubiquitous.Tokenization improves security and user experience in most ecommerce transactions.As online fraud-to-sales ratios remain high,tokenization will continue to help that ongoing

90、 battle.This is an ideal place to introduce the last emerging theme in the purchase stage of the ecommerce customer journey:Open Banking underpinned by RTP.Open Banking,a regulatory framework that allows third-party providers(TPPs)to access customer financial data with their consent,offers several b

91、enefits to ecommerce.However,fraud could damage the trust and adoption of Open Banking.Open Banking and real-time A2A payments will give consumers a simplified purchase experience.Customers can authorise payments directly from their banking apps,eliminating the need to manually enter card details.Of

92、ten initiated by scanning a QR code,Open Banking can reduce transaction times,improving the overall customer experience.Biometric authentication or other strong security measures can be used to verify payments,reducing the fraud risk.Soon,issuer banks will play a greater role in using customer data

93、to offer tailored promotions and discounts,increasing customer engagement.Real-time A2A payment transfers are gaining traction across the globe,revolutionising how individuals and businesses transact.The UKs Pay by Bank,built on the Faster Payments Service,alongside Bizum(Spain),UPI(India),Pix(Brazi

94、l),DuitNow(Malaysia),PayTo(Australia),or PayNow(Singapore)are part of the growing list of A2A RTP solutions worldwide.Online merchants are paying more attention to this alternative payment phenomenon.However,there are some challenges associated with A2A payments.In the UK,Europe,and Asia,scammers ar

95、e using emails or text messages that appear to be from legitimate businesses,tricking victims into clicking on malicious links or initiating a real-time push bank transfer.Known as authorised push payment(APP)fraud,this type of financial crime involves activities that trick people into initiating a

96、payment to a fraudsters bank account.One common instance within this category is dating scams individuals establish romantic relationships online or through dating apps to defraud their victims using RTP transfers.With pension transfer scams,criminals convince individuals to transfer their pension s

97、avings to a fraudulent investment scheme or account.These scams often promise high returns with little or no risk,but the victims funds are often lost.Victims of RTP scams usually suffer significant financial losses,leading to frustration and distrust.Marketplace scams have become increasingly preva

98、lent in online marketplaces.Regulators are implementing new legislation to address these issues.The post-purchase stageIn the post-purchase phase,the customer has received the product or service.Regulators will continue to be vital in shaping the ecommerce landscape by promoting innovation,ensuring

99、consumer protection,and fostering a competitive and trustworthy environment.While Open Banking and Embedded Finance are important aspects of their efforts,they also focus on broader issues such as data privacy,cross-border trade,and fair competition.The future of ecommerce is bright,with exciting an

100、d innovative opportunities for consumers and online merchants.By embracing technological advancements,understanding changing consumer behaviours,and navigating the evolving regulatory landscape,online merchants can position themselves for success in the years to come.Edgar,Dunn&Company is an indepen

101、dent global strategy consulting firm specialising in payments and fintech.Since 1978,we have partnered with our clients to solve challenging strategic problems,providing critical business guidance to accelerate profitable growth.Borderless Strategy Consultants We deliver measurable results with a un

102、ique global perspective for our clients across more than 45 countries.We are widely regarded as trusted and independent advisors,providing a full suite of strategy consulting services,expertise and market DUBAI FRANKFURT LONDON PARIS SAN FRANCISCO SYDNEYExperts in Payments and FinTech16THE PAYPERS|G

103、lobal EcommErcE rEport 2025Whats Driving the New Generation of Domestic Card Payment SchemesMartha Southall,Global Director of Client Insights at CMSPI,delivers strategic insights for Global 500 clients.As part of CMSPIs Insights Team,she helps equip merchants with data thats critical for industry c

104、hange.CMSPI delivers Smarter Payments Intelligence that keeps merchants ahead of the curve.Martha Southall Global Director of Client Insights CMSPILaser in Ireland,pankkikortti in Finland,PIN in the Netherlands,and Bancomat in Luxembourg have two things in common.They were all domestic card schemes,

105、and they were all abandoned between 2011 and 2015.In their absence,the processing of domestic card payments often shifted further towards the major international card brands.However,the last decade has seen countries including Russia,Turkey,and Nigeria introduce their own schemes,while others are no

106、w exploring the option.But who are these new schemes,and what is driving their development?Data sovereignty and redundancyDigital payments are now recognised as a core element of national infrastructure.It is no surprise,then,that one of the most commonly cited reasons for the development of a domes

107、tic card scheme is reducing dependence on largely US-based card schemes.This can mean protecting against technological risks like the outage Visas European systems experienced in 2018 or geopolitical ones.Russia,for example,rapidly developed its domestic Mir scheme following US sanctions in 2014.The

108、 first Mir cards were issued in 2015,and by 2023 they constituted 56%of all domestic card transactions.Similarly,it is reported that the UAEs domestic card scheme due to be launched in 2024 as part of the Comprehensive Economic Partnership Agreement between India and the UAE is,in part,intended to u

109、phold principles of sovereignty,expedite market entry,and ensure strategic independence.There are other non-geopolitical motivations behind building redundancy,too.For example,Nigerias AfriGo,launched in 2023,aims to free up foreign exchange(FX)reserves and reduce exposure to fluctuations in the dol

110、lar(USD)by allowing merchants to pay card fees in naira(NGN).CMSPI17THE PAYPERS|Global EcommErcE rEport 2025Serving the underbankedAnother common reason for building a domestic card scheme is financial inclusion.In Egypt,the development of the Meeza scheme in 2019 was part of the Central Banks ongoi

111、ng initiatives to promote a cashless society.This ambition since then echoed by AfriGo follows the likes of Indias RuPay,which was developed as one element in a host of financial inclusion measures that included the introduction of zero-balance savings accounts.When the South African Reserve Bank(SA

112、RB)consulted on the feasibility of establishing a domestic card scheme in 2021,it too cited opportunities to better serve the unbanked market and increase competition within the payments landscape.Generating competitionThe SARB is not alone in referencing the need for competition in the processing o

113、f card payments.Soner Canko,chairman of the Interbank Card Center in Istanbul,argued in an interview that the introduction of Turkeys new TROY card scheme in 2016 would generate more savings and innovation,as well as reduce reliance on cash,by charging lower fees than international card networks.How

114、ever,competitive pricing is not guaranteed purely by the presence of a domestic debit scheme.In the US,in 2011,policymakers required that all domestic debit cards be badged with at least two competing schemes and that merchants have the choice between them;however,there remain significantdifferences

115、inschemeavailability by channel,issuer type,and more.Still,the potential benefits of competition for merchants are significant.CMSPI estimates that full enablement of merchant routing choice for debit transactions in the US could save merchants USD 4 billion annually.Similarly,in Australia,least-cos

116、t routing could reduce merchant costs by AUD 804 million yearly(approximately USD 543 million,at the time of publication).Learning from the pastAlthough domestic card schemes are seeing an impressive revival,they walk a well-worn path.For example,in 2022,the European Payments Initiative became one i

117、n a string of abandoned attempts to develop a pan-European card scheme to rival international brands.In other markets,policymakers have had to intervene repeatedly to protect merchants rights to route transactions to domestic debit schemes,especially where technologies such as tokenization and the g

118、rowth of ecommerce channels affect scheme access.Furthermore,international card brands remain key players in the market for cross-border card payments.Discover Global Network,in particular,provides the infrastructure for many of the aforementioned networks to operate internationally.For merchants wh

119、ich,in the US alone,are estimated to have spent USD 224 billion on card payments in 2023,knowing how to access and optimise domestic schemes can be a lifeline amidst rising costs.However,domestic schemes are also a crucial element of any localisation strategy,and in some markets the only way a custo

120、mer can pay.Today,the ability of those schemes to innovate for customers,incentivise merchant adoption,and protect competitive markets will determine their survival around the world.CMSPI estimates that full enablement of merchant routing choice for debit transactions in the US could save merchants

121、USD 4 billion annually.18THE PAYPERS|Global EcommErcE rEport 2025The Regulatory Tipping Point:Balancing Protection with Industry Growth Keith Briscoe is VP of Member Advocacy at Merchant Risk Council(MRC),a global non-profit membership association for payments and fraud prevention professionals that

122、 empowers its members to stay connected,current,and influential within the industry by emphasising collaboration,networking,education,and advocacy.Keith Briscoe VP,Member Advocacy Merchant Risk Council(MRC)In the ecommerce payments industry,the global regulatory environment has long attempted a deli

123、cate balancing act:creating the foundation for growth,innovation,and choice while ensuring consumers are protected from harmful financial practices,fraud,and abuse.Throughout 2024,there have been multiple moves from regulators across many regions to expand regulatory authority and scope.However,when

124、 regulation moves at this pace,its equally critical that regulators keep an eye on the risk of economic loss and unintended,harmful consequences to the very consumers they aim to protect.It has always been a tricky balance to strike,particularly as regulations become increasingly broad and more comp

125、lex.These initiatives include,but arent limited to:Processing cost fee caps:multiple jurisdictions have recognised that transaction processing fee costs(e.g.,debit interchange)can unnecessarily penalise consumers and inhibit spending.Here,regulation strives to compensate network operators and servic

126、e providers fairly,while ensuring consumers dont end up paying more for goods and services than warranted.Examples:Regulation II(in the US)and the UKs Interchange Fee Regulation(IFR).Transaction security and anti-fraud measures:long contentious,security requirements like the Strong Customer Authenti

127、cation(SCA)struggle to find the right balance between fraud prevention,customer experience,and revenue growth.Although stopping fraud should always be a priority,hard regulations in this area can stifle revenue growth for merchants,while unintentionally creating friction for consumers.Examples:PSD2

128、SCA in Europe,AusPayNet in Australia,the Japan Consumer Credit Association(JCA)/the Ministry of Economy,Trade and Industry(METI)in Japan,Associao Brasileira das Empresas de Cartes de Crdito e Servios(ABECS)in Brazil(not yet enforced).Least cost routing:few would argue that merchants should enjoy the

129、 flexibility to route transactions in the most cost-effective way possible across a competitive range of networks.Yet,many argue that the loss of interchange revenue could result in unintended consumer impacts,particularly on loyalty programmes.Whether consumers would benefit from payment processing

130、 efficiencies also remains an open,hotly debated issue.Examples:Regulation II(the US),RBA(Australia).MRCRegulation strives to compensate network operators and service providers fairly,while ensuring consumers dont end up paying more.19THE PAYPERS|Global EcommErcE rEport 2025OpenBanking,financialdata

131、access,andinstantpayments:recognising that consumers deserve more choice when it comes to financial services products,the use and protection of consumer financial data is an ongoing consideration.Opening an ecosystem of new players charged with guarding financial data presents significant challenges

132、 to the industry,particularly alongside emerging new rails for instant payments in many regions.Open Banking examples:PSD2 and PSD3(Europe),Consumer Financial Data Rights(CFPB in the US).Instant payment examples:FedNow,RTP(the US),Wero(the EU),Pix(Brazil),UPI(India).Managing competing forces:where r

133、egulators and the payments industry need to engageWith large regulatory diversity,a fragmented global landscape,and regulators disparate compliance approaches,navigating the current regulatory climate is becoming increasingly onerous for merchants and other ecosystem stakeholders.Does the cost of co

134、mpliance to the industry justify purported benefits?Do regulators create unintended consequences with more harmful impacts than the problems they are trying to solve?One way to prevent such outcomes is ensuring more effective regulator-industry engagement through a well-rounded,inclusive consultatio

135、n process.Regulators often rely on industry consultations that privilege an acquirers perspective as a proxy for the merchants voice.While there are many shared goals,acquirers and merchants have unique perspectives and potential business impacts and each must be heard directly.For organisations lik

136、e the MRC,advocacy and regulatory engagement are most effective when merchants especially in force are consulted from the start.In many instances,such as SCA enforcement,significant compliance and revenue impact is concentrated on the merchant.At the same time,merchants are often in an ideal positio

137、n to identify and measure unintended consumer consequences(e.g.,in the case of SCA,challenges include abandonment and customer attrition).Additionally,there are nuances related to fraud vectors like first-party misuse a problem that SCA cannot remediate and that regulators may not fully appreciate w

138、ithout active and direct merchant consultation.Focus area:BrazilBrazil is the most recent example of the ongoing push to require SCA(specifically 3DS in this instance),and it also illustrates many of the opportunities for increased industry collaboration needed to get regulations right.ABECS(a self-

139、regulatory association)recently published SCA requirements,set to be enforced starting in February 2025.Yet,coming from a self-regulatory body,many merchants are unclear whether the requirements are a hard mandate and what potential non-compliance consequences could be.While there has been some enga

140、gement with merchants in the region,the MRCs members are seeking a path to direct,ongoing consultation.Such tight timeframes often dont leave sufficient time to explore impacts,including issuer-side readiness for risk-based authentication(RBA),assessing the economic impact of failed SCA challenges,a

141、nd fully understanding consumer impacts.For Brazil,and across the globe,consistent,inclusive engagement from all stakeholders,including merchants,is imperative if regulations are to achieve their intended purpose.Without it,the increasingly complex global regulatory environment will face unintended

142、consequences and reduce consumers confidence in the payments industry.Consistent,inclusive engagement from all stakeholders,including merchants,is imperative if regulations are to achieve their intended purpose.WHERE PAYMENTS AND FRAUD EXPERTS MEETUnlock Your Potential with MRC Education!LEARN MOREE

143、nhance your skills in payments and fraud prevention with our expert-led eLearning courses.Explore the MRC Education catalog today!MRC Membersenjoy 50%of and access to complimentary Essentials Courses.Trends and Players Shaping the Payments IndustryKeeping Pace with Change:Unlocking Potential with St

144、rategic PartnersTrends and Players Shaping the Payments IndustrySpeed up Time to Market,Increase Conversions,and Optimise the Customer Journey23THE PAYPERS|Global EcommErcE rEport 2025Irene Skrynova is the Chief Customer Officer at Unlimit,a global fintech company that offers a large portfolio of fi

145、nancial services,including payment processing,Banking-as-a-Service(BaaS),and an on-ramp fiat solution for crypto,DeFi,and GameFi.Irene is an expert in customer experience,success,cryptocurrencies,and ecommerce.Irene Skrynova Chief Customer Officer UnlimitWhat are the current trends and developments

146、shaping the global ecommerce space?Mobile commerce(m-commerce)continues to be a cornerstone of global ecommerce,solidifying its online retail position and becoming fundamental to consumer behaviour.In 2024,this trend is spreading globally,as internet usage increases and smartphones become central to

147、 the shopping experience.M-commerce brings on-the-go convenience for consumers,fast checkouts through one-click purchasing,and simplified payments through mobile wallets.In 2023,smartphone penetration reached 69%,and there were 5.4 billion internet users.By 2028,smartphone subscriptions will presuma

148、bly reach 7.9 billion,suggesting that m-commerce will not disappear,but see USD 3.35 trillion in revenue and hold a 63%share of total retail ecommerce.Digital wallets usage is also growing,securely storing payment information.In 2023,they accumulated a transaction value of 50%in ecommerce,predicted

149、to grow by 11%by 2027.Their speed and convenience force businesses to tailor checkout experiences and offer popular,relevant payment methods.Per a 2023 Forbes survey,over half(53%)of consumers said they use digital wallets more than traditional payment methods.Another trend is social commerce,which

150、is shaping how consumers find products,purchase online,and engage with brands.Online shoppers no longer rely solely on product descriptions,but also on influencers and live social media streams,making purchases directly through social media platforms.Globally,it is projected there will be 6 billion

151、social media users by 2027.Are there any upcoming trends merchants should also be aware of to stay competitive in the global market?Augmented reality(AR)and virtual reality(VR)technologies are trending in ecommerce,enabling customers to interact with products and boosting the chances of finalised tr

152、ansactions.Techjury expects 1.73 billion AR users by the end of 2024.From personalised shopping journeys,virtual try-ons,and AR filters,merchants create interactive,in-depth shopping experiences for consumers UnlimitIreneSkrynova,theChiefCustomerOfficeratUnlimit,elaboratesoncurrentpaymenttrendsandde

153、velopments shaping the ecommerce industry.Per a 2023 Forbes survey,over half(53%)of consumers said they use digital wallets more than traditional payment methods.24THE PAYPERS|Global EcommErcE rEport 2025without the inconvenience of going to a physical store,increasing brand awareness and loyalty.Th

154、e growing popularity of these technologies is reflected in ARs revenue of USD 62.7 billion in 2023,predicted to reach USD 1.10 trillion by 2030.Merchants should be aware of the trending payment methods to remain ahead of the competition and consider popular payment models,such as a combination betwe

155、en subscription plans and traditional sales.To meet growing demand and be flexible to customer needs,customisable subscription plans offer value,convenience,and flexibility,while businesses have consistent revenue and channels for continual engagement.We are seeing an evolution in the subscription m

156、odel,with the subscription economy market size projected to reach USD 1.5 trillion by 2025.From streaming to meal delivery services,subscription models are a competitive edge to forging lasting relationships between businesses and customers.With the ecommerce landscape shifting,what should merchants

157、 focus on to successfully optimise the customer journey?To boost engagement,reach new customers,and optimise their online experience,merchants can leverage artificial intelligence(AI)technologies.AI enables merchants to optimise the customer journey and boost conversion rates with generative AI,pred

158、ictive analytics,fraud detection,and product recommendations.Exploding Topics showed that 42%of companies have explored using AI,whilst 40%are looking into AI technologies.Merchants should consider their target audience to tune the customer experience and prepare their brands.M-commerce and social c

159、ommerce have increased quickly,driven by digitally native generations.By 2029,Gen Alpha will have USD 5.5 trillion in spending power,while by 2030,Gen Z will have USD 12 trillion.Both are educated shoppers,placing focus on trusting brands and social impact.Less than half(42%)of Gen Z consumers trust

160、 companies,so merchants must create authentic,human experiences to build customer trust.Gen Z will have the fastest growth in spending power,overtaking baby boomers by 2029.Additionally,over three-quarters of Gen Alpha(78%)have earned money in 2023,with nearly half(43%)using technology for this.To o

161、ptimise the customer journey,payment experiences should be tailored to location,as 59%of consumers abandon shopping carts when their preferred payment method is unavailable.With m-commerce taking the lead,digital wallets as a payment option will likely increase purchasing.A PayPal study showed that

162、providing multiple payment methods and digital wallets resulted in 71%of consumers being more likely to purchase and 62%feeling optimistic about the brand.When it comes to entering new markets,what strategies should businesses leverage to streamline their expansion efforts?The key to a successful st

163、rategy is understanding that markets differ.It is essential to consider how and where people like to shop,what draws them to brands,and how they want to pay.Fintech providers do this for ecommerce businesses,allowing them to focus on their operations.However,remaining flexible and adaptive is paramo

164、unt when expanding.Entering new markets can be simplified with technologies and local expertise,which help brands devise the right payment strategy.All these elements add value to the customer experience.Click here for the company profileThe subscription model is evolving,with the subscription econo

165、my market size projected to reach USD 1.5 trillion by 2025.25THE PAYPERS|Global EcommErcE rEport 2025Navigating the Complexities of Global Ecommerce:Why a Tailored Approach Is EssentialA global ecommerce and payment solutions company,Nexway optimises digital monetisation for medium to large enterpri

166、ses.From global payment acceptance to subscription management and tax compliance,the 360-degree approach ensures streamlined operations and global market expansion.As digital commerce continues to transform industries worldwide,the global marketplace has never been more accessible or more challengin

167、g.While growth opportunities abound,businesses are increasingly confronted with multiple barriers,from payment complexities and regulatory hurdles to the need for seamless,localised customer experiences.At Nexway,we believe the key to conquering these challenges lies in tailored,end-to-end ecommerce

168、 solutions designed specifically for businesses looking to scale.Navigating the pitfalls of fragmented ecommerce solutionsIn an attempt to grow globally,many companies find themselves relying on a fragmented network of partners one provider for payment processing,another for fraud protection,and yet

169、 another for compliance.This approach may get a business off the ground but it comes with significant risks.Disjointed systems lead to inefficiencies,data silos,and operational bottlenecks,all of which can compromise customer experience and eat into profit margins.This fragmentation is particularly

170、problematic in complex markets,where local regulations,payment preferences,and consumer expectations can vary dramatically.Attempting to manage this patchwork of services on your own,or coordinating between multiple vendors,often leads to compliance failures,increased fraud risks,and customer dissat

171、isfaction.Custom digital solutions for large enterprises:a necessity,not a luxuryLarge companies aiming to expand into new regions cannot afford to rely on one-size-fits-all ecommerce platforms.While basic solutions might be enough for small businesses or startups,enterprise-level operations demand

172、custom,scalable ecommerce strategies.Nexway specialises in flexible solutions that help enterprises turn ecommerce challenges into opportunities,meeting their unique business needs.Whether for managing high transaction volumes,automating subscription models,or navigating cross-border commerce challe

173、nges,we provide customised solutions,designed specifically for your business.Our expert team goes further by conducting an in-depth analysis of unique requirements.This allows us to create personalised features that align with your business goals and provide real value.With Nexway,you dont get a pro

174、vider but a partner that simplifies your operations and actively drives your global growth.NexwaySome of the most exciting business prospects lie in regions where ecommerce rules are anything but straightforward.26THE PAYPERS|Global EcommErcE rEport 2025Tackling high-potential but complex marketsSom

175、e of the most exciting business prospects lie in regions where ecommerce rules are anything but straightforward.Markets in Latin America,Eastern Europe,Africa,the Middle East,and parts of Asia may offer incredible potential,however,they also come with a host of challenges,from diverse payment ecosys

176、tems to complex local compliance regulations.Entering these markets alone is a daunting task.By choosing a partner with deep expertise in payment solutions,tax management,and an understanding of local markets,businesses can turn these challenges into opportunities for expansion.This insight into loc

177、al consumer behaviour highlights the need for a tailored shopping cart that delivers an optimal user experience,with payment methods suited to the market,the appropriate language,and the correct currency while adhering to local regulations.Nexway has strived to become proficient in helping companies

178、 enter complex markets easily.Our Merchant of Record(MoR)model is an accelerator for businesses looking to expand into rapidly developing markets.They can focus on what they do best by delegating the responsibility of managing regulatory burdens,from VAT and sales tax to chargebacks and compliance.A

179、s a partner,Nexway helps you gain access to comprehensive payment solutions and tax management without the need to build local teams or maintain deep legal expertise.Nexway acts as an extension of your team,enabling you to expand while ensuring all regulatory requirements are met.The importance of a

180、 unified partner in global expansionIn ecommerce,working with multiple providers can introduce unnecessary friction and complexity.Nexways 360 digital approach addresses this challenge by integrating every aspect of ecommerce operations into a cohesive solution.From payments and subscriptions to fra

181、ud protection and compliance,Nexways platform consolidates everything into a single,simplified solution,reducing the risks of relying on multiple providers.For large enterprises aiming for sustainable global expansion,this approach isnt just beneficial,its essential.By choosing a unified,tailored so

182、lution,digital businesses can focus on their core strengths,knowing that the complexities of global commerce are being expertly managed behind the scenes.A future-proof ecommerce strategyNexway is committed to being more than a service provider.We believe in building long-term partnerships,where we

183、act as an extension of your team.Our solutions are designed to handle current needs and to scale with your business as it evolves.We understand that the complexities of the global market can be daunting.As you explore new markets,implement subscription models,or refine your operations,Nexways 360 di

184、gital approach equips you for success in the global ecommerce landscape.Nexway helps you respond to market changes and anticipate them,positioning your business for long-term success.Our commitment is to help you optimise costs and streamline operations while maintaining a comprehensive view of your

185、 online strategy,enabling you to succeed,and transforming global expansion into a seamless and profitable journey.Click here for the company profileIn ecommerce,working with multiple providers can introduce unnecessary friction and complexity.27THE PAYPERS|Global EcommErcE rEport 2025Unlocking Busin

186、ess Growth Through Optimised PaymentsTiffany Hecker is a Senior Vertical Marketing Manager for the airlines,travel,and hospitality vertical at Worldpay.Worldpay helps power global commerce by providing payments technology and expertise to clients everywhere.Its processing solutions allow businesses

187、to take,make,and manage payments in-person and online worldwide.TiffanyHecker Senior Vertical Marketing Manager WorldpayIn todays fiercely competitive business landscape,optimising payment strategies isnt just nice to have its a powerful lever for driving revenue growth and gaining a decisive edge o

188、ver competitors.Recognising this opportunity,Worldpay introduces Payments Performance,a suite of vertically curated reports designed to offer merchants insights that directly impact their bottom line.Harnessing the power of paymentsA combination of consumer research across eight countries worldwide,

189、real customer success stories,and perspectives from experts across the payments ecosystem,these industry-specific reports provide practical,actionable advice that allows businesses to harness the full potential of their payment strategies.Weve identified five crucial areas in a typical merchants pay

190、ment setup where strategic optimisation can drive significant business success.Below,there is a preview of some of the insights we offer.1.User experience:smoothing the path to purchaseIn this digital age,convenience is king.Our research shows that a frictionless user experience is paramount for red

191、ucing cart abandonment and increasing conversion rates.Implementing one-click payments,storing payment details securely,and automatically updating card information when a customer receives a new card can significantly streamline the checkout process.By eliminating obstacles for the customer,youre cr

192、eating a path of least resistance to completing a transaction.2.Security:balancing protection and convenienceIn an era of increasing cyber threats,robust security measures are non-negotiable.However,the challenge lies in implementing these tools without compromising the customer experience.The key i

193、s to strike the right balance.While fraud prevention tools are crucial,overly stringent measures can block legitimate transactions,frustrating customers and potentially driving them to competitors.By implementing fraud tools that cause minimal WorldpayBy eliminating obstacles for the customer,youre

194、creating a path of least resistance to completing a transaction.28THE PAYPERS|Global EcommErcE rEport 2025disruption to the customer journey,such as biometric authentication,you can enhance account security without adding unnecessary friction.This approach helps prevent fraud and reduces cart abando

195、nment while ensuring both security and satisfaction for customers.3.Cost:strategic advantages of payment savingsEvery transaction comes at a cost,but there are innovative ways to optimise these expenses.One such approach,particularly beneficial for global businesses,involves strategically utilising

196、regional offices,sales outlets,or licences of payment processors to ensure transactions occur within the same market or country.This simple yet effective strategy can re-categorise transactions from inter-regional to intra-regional or local,potentially resulting in significant fee reductions.These c

197、ost savings can then be reinvested back into the business to improve services or passed on to customers through more competitive pricing.4.Payouts:enhancingefficiencyandcustomercontrolPayments dont just end at the point-of-sale.Efficient payout processes,often overlooked aspects of the payment ecosy

198、stem,are crucial for customer satisfaction and operational efficiency.For example,implementing self-service machines or secure online portals for payouts can empower customers to take control of their refunds and reimbursements.This does not only reduce wait times and minimise errors;it also enhance

199、s the overall customer experience,fostering loyalty and repeat business.5.Back-office:mitigatingfinancialrisksWhile the spotlight often shines on the customer-facing side of payments,back-office processes are equally important to a companys success.Reconciliation speed,cost efficiency,and accuracy a

200、re all vital elements that can significantly impact an organisations bottom line and operational effectiveness.By streamlining payment processes to ensure a timely receipt of funds in the appropriate currencies,companies can minimise the risk of trapped funds.Leveraging guaranteed foreign exchange(F

201、X)rates where a fixed rate is locked in for a predetermined period allows a business to know exactly how much theyll receive in their local currency.This approach mitigates currency volatility risks,protecting profit margins and providing financial predictability.Such strategies are particularly cru

202、cial in less stable economies.Empowering global commerceAt Worldpay,were committed to powering global commerce by providing payments expertise to businesses worldwide.Our collection of Payments Performance reports serves as your roadmap to unlocking hidden revenue potential.By optimising your paymen

203、t strategies across these key areas,you can uncover new opportunities,elevate customer satisfaction,and fuel sustainable growth.The insights shared here are just a glimpse of how we can help merchants realise their full payments potential.To explore these concepts in depth and discover how to apply

204、them to your business,we invite you to access our comprehensive suite of industry reports here.Click here for the company profileWhile the spotlight often shines on the customer-facing side of payments,back-office processes are equally crucial to a companys success.29THE PAYPERS|Global EcommErcE rEp

205、ort 2025Decoding Data to Increase Authorisation RatesMaria Parpou is the Executive Vice President of Mastercard Gateway,where she leads the gateway business in over 100 countries.She joined Mastercard in 2022 and brings over 25 years of diverse payment experience.Mastercard Gateway is an acquirer-ne

206、utral gateway with connectivity to more than 200 acquirers around the world.Maria Parpou Executive Vice President Mastercard GatewayIn todays fast-paced digital world,the sheer volume of data generated can be overwhelming.However,emerging technologies are turning this immense amount of data into new

207、 opportunities,especially in the realm of payments.By leveraging advanced analytics,biometrics,and machine learning,businesses can improve authorisation rates for payments,reduce the incidence of fraud,and provide a smoother,simpler checkout journey.Improve authorisation rates with data-rich decisio

208、n makingFor consumers,digital payments are a daily routine,often perceived as straightforward and similar across different transactions.However,from our industry perspective,each transaction captures unique data that collectively forms a digital fingerprint of the individual.One of the most notable

209、uses of this data fingerprint is to increase authorisation rates through the EMV 3-D Secure(EMV 3DS)process.This innovative system has been developed to analyse vast amounts of customer and transaction data,identifying patterns that can aid in frictionless authentication,and alerting merchants and i

210、ssuers to anomalies that could indicate fraudulent activity.By leveraging these insights,merchants and financial institutions can improve authorisation rates,enhance security measures,and ensure a seamless experience for users.Although EMV 3DS was adopted several years ago,certain aspects of the new

211、 authentication process continue to remain underutilised.For our Mastercard Gateway customers,we ensure they are taking advantage of the EMV 3DS 2.0 process,including the EMV 3DS Method URL.For many,this strategy is overlooked despite many businesses clearly demonstrating the high-performance boost

212、that frictionless payments provide through lower challenge rates when both the merchant,the issuer,and their Access Control Server(ACS)support the EMV 3DS Method URL.Mastercard GatewayAlthough EMV 3DS was adopted several years ago,certain aspects of the new authentication process continue to remain

213、underutilised.30THE PAYPERS|Global EcommErcE rEport 2025Using the EMV 3DS Method URL allows the ACS to provide merchants with a script to collect a rich set of data elements beyond the standard transaction details.These data points can help the issuer determine whether to send a challenge to the car

214、dholder to confirm their identity or allow a frictionless transaction to proceed.Included in these rich data points are historical information on the device the transaction is coming from and details on the browser,including Internet Protocol(IP)address,time zones,and others.By leveraging these insi

215、ghts,merchants and financial institutions can improve approval rates,enhance security measures,and ensure a seamless experience for users.Create a future of continuous optimisation with AI fraud solutionsThe integration of advanced machine learning algorithms significantly enhances authorisation rat

216、es by swiftly analysing data from various sources and recognising patterns or irregularities associated with fraud.These systems continuously evolve,adapting to emerging threats and maintaining a step ahead of fraudulent tactics.Consequently,merchants benefit from reduced false positives,ensuring th

217、at legitimate transactions are not mistakenly declined.By preemptively screening high-risk transactions before submitting them for network authorisation,overall approval rates see notable improvement.At Mastercard Gateway,we go beyond a traditional payment gateway by offering comprehensive commerce

218、solutions,including artificial intelligence(AI)-driven fraud detection.Our integration with Brighterions artificial intelligence and machine learning capabilities through the Transaction Risk Management(TRM)system provides real-time analysis,empowering acquirers to better assist and protect their me

219、rchants,decrease fraud,and authorise more genuine transactions.TRM enhances its AI model score with adaptable rules and thresholds,allowing acquirers to tailor the system to their specific needs and a businesss risk tolerance.This customisation facilitates an optimal balance between maximising autho

220、risation rates and minimising fraud losses.The effectiveness is evident,with customers experiencing an 80%increase in approval rates,thanks to TRM powered by Brighterion.Harnessing the power of data has the ability to transform the landscape of financial transactions.Not only can it improve authoris

221、ation rates and reduce fraud,but also enhance the overall customer experience,creating a win-win situation for all parties involved.By continuously optimising authorisation processes through data-rich decision-making tools like EMV 3DS and AI-driven fraud solutions like Brighterions TRM system,busin

222、esses can significantly enhance security while ensuring a seamless and efficient customer experience.For more information on how we can help you improve your payment processes and ensure a secure,frictionless transaction experience for your customers,do not hesitate to contact us.Our team of experts

223、 is ready to assist you in implementing these innovative solutions to maximise your authorisation rates and minimise fraud losses.Click here for the company profileHarnessing the power of data has the ability to transform the landscape of financial transactions.Trends and Players Shaping the Payment

224、s IndustryThe FX Opportunity32THE PAYPERS|Global EcommErcE rEport 2025From Local to Global:How FX Innovation Is Driving Ecommerce ExpansionAlex Lawrence is the Global Head of Content Strategy&Industry Engagement at Convera,an international payments company specialising in commercial cross-border pay

225、ments,providing innovative financial solutions to businesses and institutions to enhance efficiency and economic growth.Alex also hosts the weekly Converge Podcast.Alex Lawrence Global Head of Content Strategy&Industry Engagement ConveraEcommerce is growing at a breakneck pace,and as more businesses

226、 expand globally,theyre running into a critical piece of the puzzle:foreign exchange(FX).Whether for paying suppliers overseas or receiving payments from international customers,managing FX can be tricky,costly,and time-consuming.The landscape is changing,however,thanks to fintech innovations like d

227、igital wallets,real-time payments(RTPs),and blockchain.These technologies make cross-border payments faster,more transparent,and less expensive exactly what businesses need to thrive in todays global marketplace.The FX revolution in your digital wallet Digital wallets have come a long way from just

228、storing your money theyre now set to transform how FX transactions happen.Traditionally,banks act as the intermediaries for these transactions,causing delays and imposing fees.By cutting out the middlemen and using fintech infrastructures like blockchain and RTP systems,digital wallets enable near-i

229、nstant FX conversions with lower fees.This is nothing short of a game changer for cross-border payments,where delays can hurt businesses and currency fluctuations can eat into profits.In regions like Asia-Pacific,where real-time payments are becoming the norm,digital wallets are integrating with loc

230、al systems to make currency exchange and funds transfers nearly instant.Another big plus?Digital wallets that leverage blockchain technology bring a new level of transparency to international transactions from exchange rates to fees in real time.For ecommerce businesses,this means more control over

231、their money and lower costs,which ultimately leads to better service for customers.Real-time payments set for a boomAnother key trend shaping FX is the explosion of RTPs.Our latest industry report,Fintech 2025+,revealed that RTP transactions are expected to reach USD 511.7 billion by 2027,marking a

232、21.3%annual growth rate.With the G20s ambitious goal to see 75%of cross-border payments reach recipients within an hour by 2027,the RTP boom offers great potential to transform the efficiency of international transactions to match these ambitions.Convera33THE PAYPERS|Global EcommErcE rEport 2025This

233、 presents a unique opportunity for global ecommerce businesses to improve cash flow and optimise their supply chains.For example,RTPs enable faster disbursements to suppliers,improving efficiency and reducing the risks associated with delayed payments.For businesses selling internationally,RTPs can

234、reduce the cost and complexity of cross-border transactions,allowing companies to meet the demands of global customers without the delays associated with traditional banking systems.Tackling FX risk in the age of instant paymentsAs cross-border payments become faster,new challenges arise,particularl

235、y when it comes to managing FX risk.Exchange rates can fluctuate in seconds,underscoring the need for technology that can securely and speedily adapt to this new environment.The concept of automated hedging tools is fast becoming a reality,set to change the game for businesses that manage frequent c

236、ross-border transactions.Powered by advanced artificial intelligence(AI),these systems can monitor the market and make real-time adjustments to protect your business from unfavourable currency shifts without any manual effort.This will enable global ecommerce companies to more easily handle fast-cha

237、nging exchange rates.Another exciting development on the horizon is the automation of currency swaps and forward contracts.These tools allow businesses to lock in an FX rate for future payments,offering a layer of protection against unpredictable market moves.As real-time payments and digital wallet

238、s become more integrated,automating these contracts will become a key strategy for keeping cash flow smooth and predictable.Smart contracts and blockchain are also poised to revolutionise FX risk management by automating transactions based on predefined,or programmable,conditions like a currency hit

239、ting a favourable rate.This hands-off approach ensures that you get a rate that meets your business objectives without having to constantly monitor the markets.With blockchain at their core,smart contracts are set to deliver greater transparency,speed,and security for cross-border transactions.The f

240、uture of FX in ecommerceThe key takeaway here is that the world of FX is evolving,and businesses that adapt to these changes will be well-positioned for success in the global market.As ecommerce continues to expand across borders,the role of FX will become increasingly central to the success of glob

241、al businesses.Innovations like digital wallets,blockchain,AI,and RTPs are setting the stage for a more seamless,transparent,and cost-effective FX process.However,these advancements also come with the need for businesses to stay vigilant about FX risk,particularly in a world where real-time payments

242、are becoming the norm.For a deep dive into the trends,technology,and transformation driving global commerce today,check out Fintech 2025+,our latest industry report developed in partnership with Oxford Economics and The Paypers.Click here for the company profile34THE PAYPERS|Global EcommErcE rEport

243、2025Strategies to Overcome Foreign Exchange Challenges and Boost Merchant RevenueLeading the European payment practice at Redbridge,Gabriel has been providing strategic advice to international and multichannel merchants in their payment transformation and optimisation journeys since 2020.Redbridge D

244、ebt and Treasury Advisory is a leading financial management partner to corporations around the globe.Gabriel Lucas Director Redbridge Debt and Treasury AdvisoryIntroductionThe foreign exchange(FX)market is pivotal in facilitating international trade and investment.Traditional banking methods,though

245、reliable,often fall short in terms of speed,cost,and accessibility,paving the way for alternative payment methods that leverage advanced technology to optimise FX transactions.With a daily trading volume exceeding USD 7.5 trillion,the FX market is the largest and most liquid financial market globall

246、y.Operating 24 hours a day,five days a week,it enables currency exchange among banks,financial institutions,corporations,governments,and individual traders,while serving as a platform for speculative trading,where participants aim to profit from fluctuations in exchange rates.In addition,it gives bu

247、sinesses the flexibility to choose when to hold or convert funds based on market conditions.This approach also enhances cost optimisation and control.What are the main challenges related to FX in payments?FX directly impacts transactions by influencing the amount received due to exchange rate fluctu

248、ations,affecting costs and timing.From a customer perspective,whether in B2B or B2C environments,the primary concerns are ensuring that transactions are conducted with legitimate sellers and understanding additional fees.When the buyer and seller operate in different currencies,the need for currency

249、 conversion introduces potential volatility and FX fees,which must be managed by one or both parties the same logic applies between a platform and its sub-merchants.International exchange rates can be very fluctuating,making it challenging to predict the payments value in the currency of the recipie

250、nt at the time of the transaction,and it can shift unfavourably.Moreover,international payments are usually more expensive than domestic ones,and banks and financial institutions may charge additional fees that will impact the final amount settled to merchants.Additionally,these fees are generally q

251、uite opaque,so all parties involved in the transaction are unaware of how much they will actually end up paying for this operation.Without clear visibility into the entire transaction process,businesses may face challenges in accurately monitoring and managing their cross-border payment activities.R

252、edbridge Debt and Treasury AdvisoryWith a daily trading volume exceeding USD 7.5 trillion,the FX market is the largest and most liquid financial market globally.35THE PAYPERS|Global EcommErcE rEport 2025How can merchants turn challenges into opportunities?For frequent transactions in specific curren

253、cies,some may choose to open an account in that currency,benefiting from favourable pricing conditions.However,this solution is less practical for occasional or low-value transactions,where additional costs might not be anticipated or not worth the effort.In such cases,the decision of who bears the

254、risk of currency volatility and FX conversion fees becomes critical,with several solutions available:1.Merchant currency the merchant may choose to maintain transactions in its local currency,passing the risk and cost of FX conversion to the buyer.While straightforward for the merchant,this approach

255、 can negatively impact customer experience,particularly for those without multi-currency accounts or favourable FX conditions.Moreover,transaction fees can still be high for cross-border operations.2.Dynamic currency conversion(DCC)available for both online and physical transactions,DCC offers buyer

256、s the choice to pay in either the merchants currency or their own.If the buyer opts for their currency,a commission is disclosed before confirming the transaction.The merchant may receive a portion of this commission,becoming a newsourceoffinancialrevenue,which offsets part of the high costs associa

257、ted with international transactions.On top of that,offering DCC may reduce chargebacks,which are often triggered by customers not recognising foreign transactions on their statements.Paying in local currency may also have a positive impact on acceptance rates.3.Multi-currency pricing(MCP)merchants c

258、an offer MCP,allowing buyers to pay in their own currency.This enhances customer experience but transfers the FX risk and fee burden to the seller.A potential mitigation strategy is for the seller to open a multi-currency account or a local entity(when this is worth the investment),enabling it to se

259、ll and receive payments in the same currency(also called like-for-like settlement).In certain cases,merchants can also monetise this service and receive a kickback from the FX provider.4.Payouts the same logic applies to platforms when sending payouts to their sub-merchants,where the platform can tu

260、rn FX into a value-added service by proposing payouts in local currency,and therefore improving its value proposition while generating additional revenues out of it.Key takeaways In conclusion,the intersection of payments and FX is pivotal in todays global economy,as businesses increasingly engage i

261、n cross-border transactions.The complexities introduced by FX,such as currency volatility and transparency issues,present significant challenges in managing transaction costs and ensuring smooth operations.Solutions like DCC and MCP offer innovative ways to address these challenges,allowing merchant

262、s to enhance customer experience,reduce chargebacks,and potentially generate additional revenue.However,the effectiveness of these solutions depends on careful implementation and understanding of the associated risks.Leveraging these strategies can help businesses navigate the intricacies of interna

263、tional payments and optimise their operations.This is typically what should be assessed as part of your payment strategy and the resulting target payment architecture.Offering DCC may reduce chargebacks,which are often triggered by customers not recognising foreign transactions on their statements.T

264、rends and Players Shaping the Payments IndustryImproving Performance with Payment Orchestration37THE PAYPERS|Global EcommErcE rEport 2025IntroductionIn todays payments landscape,merchants are dealing with more complex systems,often suffering from legacy technologies and an expanding range of payment

265、 options.As managing these payment processes becomes increasingly complicated,optimising them has become essential,usually requiring the involvement of Finance,Marketing,and IT teams.Payment orchestration offers a practical solution to these challenges.Unifying various payment methods and providers

266、into one streamlined system simplifies how businesses manage transactions.This integration ensures payments are routed through the most efficient and cost-effective channels,saving time and reducing costs.What is payment orchestration?Before we go any further,what do we mean by payment orchestration

267、?Payment orchestration is software that allows merchants to simplify payment processes,helping businesses reduce costs,increase revenue,and improve operational efficiency and resilience.It connects payment providers,gateways,and methods into a unified system.This allows businesses to handle transact

268、ions more effectively,routing payments through cost-efficient and reliable channels.By doing so,payment orchestration reduces transaction fees and minimises the risk of failed payments,which increases revenue.In todays payments landscape,where merchants must juggle numerous payment options and techn

269、ologies,payment orchestration stands out as a powerful tool.While it is not suited or required for every company,everyone should closely watch this technology and assess whether it can help their business stay competitive and thrive.What benefits and challenges does payment orchestration bring?As fo

270、r most payment-related topics,there is a lot of literature and marketing content out there about payment orchestration and many companies sell themselves as such,while they lack the main benefits that such a tool could bring.How Payment Orchestration Helps Conquer Complex Merchant ChallengesRedbridg

271、e Debt and Treasury AdvisoryGabriel Lucas,Director,and Chaira Mekkaoui,Associate Director,are part of Redbridge Debt and Treasury Advisory,a financial management partner committed to providing each client with all the information required to make the best decisions and optimise financial performance

272、.Chaira Mekkaoui Associate DirectorRedbridge Debt and Treasury AdvisoryGabriel Lucas DirectorRedbridge Debt and Treasury AdvisoryPayment orchestration reduces transaction fees and minimises the risk of failed payments,which increases revenue.38THE PAYPERS|Global EcommErcE rEport 2025That said,what i

273、mprovements could a merchant observe following the implementation of a payment orchestration layer?1.Ensure business continuity and resilience:payment orchestration consolidates all payment processes and ensures automatic smart routing to the most efficient provider.One may say that this centralisat

274、ion also creates a single point of failure,which is true.Therefore,to ensure uninterrupted business operations and resilience,it is crucial to select a robust provider and have a backup strategy.2.Bring visibility and insights:once data is centralised and harmonised into one single platform,the orch

275、estration layer provides valuable insights into transaction trends,performance,and costs.This visibility helps businesses make informed decisions and optimise their payment strategies.3.Benchmark cost and performance:if all data is in the same place,and we can run a deep analysis on top of this,we c

276、an easily compare metrics across different payment providers,making it possible to identify the most efficient routing options.This optimisation typically reduces costs and improves transaction approval rates.4.Improve checkout experience:with low or no-code solutions,payment orchestration can enhan

277、ce the checkout process with secure input fields and UI components to collect payment data making it smoother and more customisable without requiring extensive IT resources.It reduces the complexity for IT teams,which usually translates into fewer PCI DSS requirements.5.Easily change or add payment

278、providers:the orchestration layer simplifies adding or switching payment providers and third-party services,requiring minimal IT involvement.This flexibility helps businesses quickly adapt to market changes and maintain optimal payment performance.Payment orchestration also has potential downsides.C

279、entralising payment processes can create a single point of failure,making the system vulnerable if the orchestration layer encounters issues.Additionally,implementing and maintaining an orchestration layer can be complex and costly,requiring significant upfront investment and ongoing management.For

280、example,integrating with multiple payment providers and systems may lead to compatibility issues or increased complexity.There may also be concerns about data security and compliance,as handling sensitive transaction information through a centralised system requires stringent measures to protect aga

281、inst breaches and ensure regulatory adherence.Finally,payment orchestration was born to serve ecommerce and digital transactions but it still struggles to play in the physical world,particularly when it comes to POS terminals something we covered in our Tap-to-Pay article.Key takeaways Payment orche

282、stration is a solution for merchants facing todays complex payments environment.Centralising and streamlining various payment methods and providers into a single system simplifies transaction management,reduces costs,and enhances operational efficiency.Merchants can benefit from improved business co

283、ntinuity,better visibility into transaction data,and optimised payment routing,which can increase revenue and smooth the checkout experience.Despite its advantages,payment orchestration is not without challenges.The centralisation of payment processes can create a single point of failure,and impleme

284、nting such a system can be costly and complex.Compatibility issues and data security concerns also need to be addressed.Additionally,while payment orchestration excels in digital and ecommerce transactions,its adoption in physical retail and POS systems remains limited.Ultimately,while payment orche

285、stration holds great promise,businesses should carefully evaluate whether its benefitsoutweighthe potential downsides and determine how to integrate it best into their operations to stay competitive.Payment orchestration was born to serve ecommerce and digital transactions but it still struggles to

286、play in the physical world.40THE PAYPERS|Global EcommErcE rEport 2025Brady Harris is the CEO of IXOPAY,an enterprise-grade payment orchestration platform that helps merchants succeed in global commerce.With a single API and a scalable payments architecture,IXOPAY empowers businesses to streamline,se

287、cure,and increase the resilience of their payment systems.Brady Harris Chief Executive Officer IXOPAYHow does a payment orchestration layer help centralise payment management?A payment orchestration layer centralises payment management by integrating multiple payment services,gateways,and payment me

288、thods into a single platform.If Im a global merchant,this unified system allows me to streamline operations,automate processes like routing and reconciliation,and access consolidated data for analysis.With one API handling all payment activities,I no longer need multiple,direct vendor integrations,w

289、hich reduces complexity and boosts efficiency.It also gives me complete visibility into global payment flows from a unified dashboard,ensuring my payment strategy is both seamless and scalable.For merchants aiming to launch in new markets,how can payment orchestration complement expansion plans and

290、help navigate regional regulations and payment preferences?Expanding into new markets becomes much simpler with payment orchestration.It connects merchants to an extensive network of payment service providers and payment methods,allowing them to offer region-specific options like local currencies,di

291、gital wallets,and alternative payment methods.This approach ensures they meet local customer preferences while complying with regional regulations.By automating tasks such as currency conversion,tax reporting,and data privacy adherence,international businesses can focus on scaling without getting bo

292、gged down in the complexities of global payment operations.What are the benefits of intelligent routing for merchants?Intelligent routing greatly impacts merchants by optimising transaction success rates,reducing costs,and enhancing customer experiences.It minimises declines and builds resilience by

293、 dynamically selecting the best payment processor based on factors like location,transaction type,or payment method.Additionally,it keeps fees in check by sending payments to the most cost-effective providers and ensures transactions go through,even if one gateway has issues.For cross-border transac

294、tions,it supports currency-specific routing to match customer preferences.IXOPAYBradyHarris,ChiefExecutiveOfficerofIXOPAY,elaboratesonhowpaymentorchestrationcanhelpmaximiseefficiencyinecommerce.Intelligent routing greatly impacts merchants by optimising transaction success rates,reducing costs,and e

295、nhancing customer experiences.41THE PAYPERS|Global EcommErcE rEport 2025In addition to routing across PSPs,tokenized card data can also be routed using various tokenization methods.By dynamically choosing which token format to use during a transaction,such as a network or a universal token,payment o

296、rchestration minimises delays and optimises transaction approval rates.What data insights can merchants gain from a payment orchestration platform,and how can they be leveraged to their advantage?Looking at transaction data helps businesses spot trends like how often customers make purchases,what pa

297、yment methods they prefer,and when they shop the most.This information is key when expanding into new markets or launching new products because it reveals spending habits and payment preferences,which guide decisions.Additionally,analysing payment processing efficiency like success rates and failure

298、 patterns helps optimise a merchants routing approach,minimising lost sales.Finally,real-time monitoring helps prevent fraud by spotting unusual transaction patterns,so businesses can act fast to avoid bigger problems.How are new technologies and trends expected to influence payment orchestration,an

299、d could it become a standard practice for global merchants?Emerging technologies like artificial intelligence(AI),Open Banking,real-time payment systems,and Embedded Finance are already revolutionising payments and improving payment orchestration,apart from providing business benefits to merchants.A

300、I can enhance intelligent routing and fraud detection,maximising approval rates and minimising merchant losses.Open Banking data can give merchants insight into customer behaviour,improving checkout experiences.Tapping into real-time payment networks can improve cash flow and offer faster access to

301、working capital.Plus,trends like Embedded Finance allow merchants to provide more ways to pay,which can boost sales while opening new revenue opportunities.The pace of payments innovation is accelerating,which means more complexity for merchants and platforms.In part,this is due to its fragmented na

302、ture.Companies often specialise in a specific area be it crypto conversion,AI-enabled risk and fraud,tokenization,embedded lending,or any of the other evolving sectors we read about daily.With the rapid growth of the digital economy,merchants will need to coordinate their payments and these adjacent

303、 services in all the places they do business.Introducing new payment capabilities,especially when launching in a new market,often means adding more PSPs to the payment stack.Product and developer teams get stretched building and maintaining these,on top of the existing payment infrastructure.Theres

304、an inflexion point and we hear it every day where managing it all directly becomes too burdensome.Merchants,faced with growing consumer expectations for seamless,secure payment experiences,recognise the value of a sophisticated orchestration provider and become part of the payment orchestration move

305、ment.IXOPAY cuts through the complexity to optimise payment capabilities.This delivers winning outcomes both for our customers and just as importantly,their customers.Click here for the company profileIntroducing new payment capabilities,especially when launching in a new market,often means adding m

306、ore PSPs to the payment stack.42THE PAYPERS|Global EcommErcE rEport 2025Can Payment Orchestration Solve the Interoperability Challenge?Brian Coburn is the Chief Strategy Officer and Founder of BR-DGE.Brian brings together purpose-built technology with payment services to deliver value across the ent

307、ire merchant ecosystem.BR-DGE is an independent payment orchestration technology provider.Its modular platform connects with over 400 payment methods and partner solutions.Brian Coburn Chief Strategy Officer and Founder BR-DGEHow can you support a consistently smooth and secure checkout experience w

308、hile operating multiple payment processes and connections behind the scenes?To deliver the right blend of payment capabilities and acceptance levels,every merchant must address this conundrum,which is amplified by a lack of interoperability between various payment ecosystem players.Although multiple

309、 relationships with acquirers,payment service providers(PSPs),and other entities are now the norm,todays payments world poses some challenges for enterprise-level merchants and the acquirers that want to attract and keep them.With so many payment methods,gateways,and channels in the mix,merchants ne

310、ed to manage multiple relationships and platform integrations as well as the ongoing maintenance and evolution of those systems.Fraud is another challenge,as verifying customers and protecting their data requires injecting the right amount of friction at the appropriate moment of the payment journey

311、.Additionally,acquirers struggle to remain relevant in a field crowded with competitors dangling discounted fees and service incentives to tempt merchants away.Acquirers themselves need interoperability to deliver value to their merchants.Why payment orchestration is the key to unlocking true intero

312、perabilityThe increasingly fragmented payment ecosystem makes it a major mission to build and sustain all the right connections to serve consumers across different demographics and geographies.Although more payment solutions are now built with the potential to be interoperable,many cannot easily be

313、used in an interoperable way because of how they are deployed or where they sit among other solutions.Payment orchestration could solve the interoperability challenge but only if it is an independent,provider-agnostic technology layer that enables the payments ecosystem to work with any other provid

314、er,system,or platform.Through a single API integration,payment orchestration layers can sit independently between a merchants platform and their acquirers or PSPs,while being compatible with them.Orchestration technology unlocks access and flexibility to use new payment methods,routing,tokenization,

315、fraud management services,checkout personalisation,data insights,and much more.BR-DGEAlthough more payment solutions are now built with the potential to be interoperable,many cannot easily be used in an interoperable way.43THE PAYPERS|Global EcommErcE rEport 2025For example,merchants could use a pay

316、ment orchestration layer to configure tailored combinations of payment methods and routing capabilities for each market.They could also plug in a fraud management provider for a certain market or transaction profile and use another for white-listed customers,pre-authorisation screening,and post-auth

317、orisation reviews.But interoperability isnt just for merchants and neither is orchestration.An orchestrator can help PSPs and acquirers unlock interoperability between legacy and newer technologies,plug their service or technology gaps,and extend into new markets.This might even involve pushing sele

318、ct volumes or transactions through their competitors gateways or processing capabilities.When payment orchestration is provided on a white-label basis,acquirers can tap into the latest payment services and ensure a consistent experience for their merchants,all in their branding,helping them stay rel

319、evant in a crowded marketplace.Independent token vaults can aid interoperabilityMerchants often opt to protect sensitive customer data through tokenization but they must unlock that data to enhance customers payment journeys.If transaction data is spread around multiple PSPs,gateways,and acquirers,a

320、 lack of interoperability makes tracking that data harder.Most tokens today are proprietary produced by processors and cannot be used outside a merchants walled garden.This creates a dependency between the merchant and their PSP,making it difficult to move to a new PSP or add a new one.Network token

321、s have attempted to be universal.However,the security elements designed around these also introduce points of dependency.The token requestor(the merchant)and the token service provider offer a unique combination to which each network token is issued.Token provisioning,cryptogram provisioning,or life

322、cycle management are restricted to that combination.The answer is to use an independent token vault a ubiquitous,centralised,secure store for sensitive payment data and a related set of tokens that represent a payment instrument.When used with an orchestration layer,this becomes an even more powerfu

323、l enabler of interoperability.Rather than add to their walled gardens,merchants need flexibility and freedom with their tokenization strategy,as much as with any other element of their payment processes.Thats why we built BR-DGE Vault,which collates acquirer and network tokens for a payment instrume

324、nt and stores them behind a BR-DGE token.This ensures a secure set of tokens for use,regardless of where the payment is processed,and that the flow is not locked in against any single payment processor.We proactively create and update tokens with our customers processors,and we sync those tokens bac

325、k to their internal environments,if they wish,to give them ultimate freedom and flexibility.Interoperable orchestration can deliver value throughout the ecosystemCapable of connecting any payment system with any payment provider,orchestration delivers interoperability that empowers merchants and acq

326、uirers to serve great customer experiences,optimise acceptance,reconcile data from multiple touchpoints across multiple markets and channels,and build custom payment flows.With a truly independent and vendor-agnostic payment orchestrator,merchants and acquirers can change the make-up of their tech s

327、tack as their business evolves and navigate the future world of payments with less complexity,more control,and happier customers.Click here for the company profileOrchestration delivers interoperability that empowers merchants and acquirers to serve great customer experiences,optimise acceptance,and

328、 reconcile data.44THE PAYPERS|Global EcommErcE rEport 2025Bridging the Gap:How BridgerPays Omnichannel Orchestration Platform Transforms PaymentsRan Cohen,Co-Founder and CEO of BridgerPay,leads the company with a strategic vision and a focus on innovation.Founded in 2019,BridgerPay is an omnichannel

329、 payment operations platform that optimises processing and revenue,while offering access to over 1,000 payment providers globally.Ran Cohen Co-Founder and CEO BridgerPayIn todays omnichannel landscape,businesses face numerous challenges.Customers expect a seamless payment experience,whether theyre b

330、rowsing online,booking a trip,or purchasing in a physical store.However,managing separate systems for online and in-store payments can lead to inefficiencies,fragmented data,and lost sales.With increased competition in sectors like retail,travel,and Software-as-a-Service(SaaS),businesses cant afford

331、 to deliver anything less than a smooth,unified experience.BridgerPays omnichannel orchestration platform goes beyond traditional solutions by offering an agnostic system,designed to bridge the gap between online and offline payment operations.By unifying these processes,BridgerPay enables businesse

332、s to operate more efficiently,improve customer satisfaction,and increase revenue whether for optimising payments for retail stores,enhancing the booking experience for travel platforms,or managing complex billing cycles for SaaS companies.Reduced processing costs One of the primary benefits of Bridg

333、erPay is its ability to reduce processing fees.Many businesses juggle multiple payment processors for different channels one system for ecommerce transactions,another for in-store payments,and sometimes even more for mobile transactions,often resulting in higher costs and less flexibility.BridgerPay consolidates payment operations under one roof,offering real-time pricing comparisons across provid