Payment service providers need to change to survive cross-border markets

With retail sales at an all-time high globally (according to data from eMarketer, total retail sales hit $22 trillion worldwide in 2016, a 6% increase from 2015), payment service providers (PSPs) will have to deliver more to the merchant acquirers than ever before.

Retail sales show no sign of abating and the growth rate is predicted to peak at 6.3% in 2017. Over the next five years, the market will deliver strong numbers.

Nearly a quarter of the world’s population had made a purchase via a digital channel in 2015 and a growing proportion of this trade is cross-border.

This means that PSPs must be able to meet the cross-border needs of their merchants if they are to stay competitive. Merchants expect to pay least-cost routing and local fees for cross-border transactions at minimum. PSPs should also have extensive familiarity of regional preferences and compliance regulations.