Globalization is by no means a new concept. For over two decades, technological innovation has enhanced the international connectedness of local societies, facilitating the rise of a globally-enabled economy.
Whereas in the past, multinational companies were responsible for opening new channels of commerce by bridging advanced markets with emerging economies, the enablers of globalization have changed.
Now, high-growth scale-ups are using technology to overcome the obstacles SMEs typically face when attempting to engage with businesses, consumers and investors based outside of their national jurisdictions.
This is particularly true when it comes to the payments sector.
Since being founded in 2017, Transact365 has experienced first hand the rise in demand from e-commerce businesses seeking innovative finance solutions that can offer access to emerging markets.
During our formative years, we used our 25 years of combined experience to create an alternative finance platform. Having refined our payment service platform, 2022 has so far been a year focused on regional expansions.
Transact365 has successfully launched our cross border payments platform in India and LATAM, targeting those emerging markets SME merchants are keen to target. At the same time, we are actively exploring new partnerships to service APAC and different parts of Africa.
It is these sort of activities which reflect how payment service providers like Transact365 are promoting a global economy that can be accessed by all e-commerce businesses, no matter which sector they are based in or their size.
Based on our experiences over the last 24 months, it is evident to us that two trends are increasing the volume of global e-commerce transactions; the COVID-19 pandemic and social commerce.
The pandemic fuels the rise of e-commerce
The buying and selling of goods and services over an electronic network has led to the rise of e-commerce businesses.
By taking advantage of e-commerce ecosystems which comprise payment gateways, online logistics and marketplaces, SMEs can participate in cross-border transactions in a cost-effective manner.
E-commerce has expanded rapidly as a result of the COVID-19 pandemic. Research by eMarkerter revealed that e-commerce retail sales topped nearly $5 trillion worldwide in 2021 and is on track to reach just under $7 trillion by 2024.
During successive lockdown periods and the limited acceptance of cash for transactions, consumers and businesses have had to naturally rely on e-commerce transactions to purchase goods and services.
While social distancing measures are being lifted, there is nothing to suggest consumers and businesses will revert back to old habits.
The pandemic has accelerated the awareness and use of e-commerce, and on this basis, it is likely to account for nearly one in four retail sales by 2024.
The merging of social media and e-commerce
Social commerce refers to the combination of social and online media to assist with the online transactions of goods and services.
Instagram, Facebook and Pinterest have already integrated e-commerce capabilities into their platforms, ensuring that users can seamlessly purchase products that interest them, and delivering tailored content based on what their users engage with.
Such an integration makes sense given over three and a half billion people use social media platforms. Importantly, for merchants looking to engage with consumers on social media, doing so requires an understanding of payment systems from the vendor based on typical consumer preferences to ensure seamless transactions.
Given the global reach of social media platforms, all merchants have to focus on delivering customisable and localized payment systems, ensuring their options are varied enough to ensure initial interest can convert into a final sale.
Importantly, merchants have to prioritize customer security, using payment systems that are not only local but that can also ensure secure and sophisticated transactions through encryption and tokenization.
Transact365 uses Secure Socket Layer (SSL) and Transport Layer Security (TLS) to protect buyer data. This is further reinforced at the application level by the RSA algorithm with a key length of 2048 bits.
A global audience for local brands
Payment service providers like Transact365 are ensuring that local merchants can tap new global markets through seamless payment gateway systems.
We are essentially acting as instigators of international commerce and trade, empowering SMEs with the tools needed to access international markets.
With e-commerce continuing to rise, the need for online merchants to engage with gateways that can offer cross-border transactions, real-time reconciliation and FX rates is vital to their growth.
We are constantly exploring new opportunities in both emerging and established markets. By growing our network of payment partners, our e-commerce merchants enjoy access to billions of consumers.
In doing so, we are opening SMEs to the full benefits on offer from a globalizing economy.
Transact365 – a global payments platform powering merchants across the world in all industries www.transact365.com
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