Emerging markets offer new opportunities in payment gateway: Page 2 of 2
Despite the already crowded marketplace, new startups are springing up to capture niche opportunities. Among these is telr. Founded in March 2014 the company brands itself as a one-stop ecommerce solution provider targeting emerging markets in the Middle East and Africa, Southeast Asia and India.
Telr co-founder and CEO, Sirish Kumar (pictured right), says small and medium (SMM) merchants in emerging markets have yet to see their pain-points addressed, including the preference to drawdown in local currency thereby enabling their buyers to purchase goods and services in their currency of choice. Currently he claims local e-commerce form a very small percentage of total e-commerce globally.
Kumar believes there is a need for local payment solutions to enable the growth of local e-commerce whether it is via credit cards, online banking, prepaid cards, and cash before delivery.
“The ecosystem is fragmented and needs players such as Telr and the banks to form strategic partnership amongst them to benefit the small merchants to come online faster,” he adds.
He predicts that social media and mobile phone penetration and growing purchasing power of the millennials will result in a new inflexion point for e-payments growth in emerging markets.
Inflexibility breeds opportunities
Stringent regulations are hindering banks’ ability to respond to market changes fast. This inflexibility is an opportunity for other players to come in and take on market share. “We have seen non-banking companies drive innovation with focus on small merchants, while banks are still geared towards addressing the needs of larger corporate entities. We are committed to working hand-in-hand with banks, which will empower Telr to onboard merchants in short periods of time and continue developing solutions for small merchants. We have been at the forefront of signing definitive agreement with regional banks to help merchants with nil upfront costs, quicker on-boarding time, and competitive pricing structure,” explained Kumar.
Digital currency: threat or opportunity
Still a very nascent force in the global currency space, digital currencies have still to find their voice in global commerce. Telr’s Kumar projects ecommerce to growth exponentially in places like Indonesia, the Middle East and India yielding as much as 30% YOY growth. “For any digital currency, there are three factors for success: low volatility, acceptance, and no anonymity. Payment gateway platforms, like Telr, will offer more of such currencies as long as it helps merchants reach out to larger number of consumers.” He adds.
Expanding Mobile Commerce
In emerging markets like Southeast Asia and India smartphones have quickly tools for commerce facilitating commercial transactions between online buyers and sellers. “We have merchants, where more than 90 percent of their transactions are driven by mobile phone. Moreover, the ratio of successful transactions through mobile phone is very encouraging. We are bullish that we will see more merchant-focused applications on mobile phone. We are at the forefront of developing mobile SDK that can allow merchants to integrate with multiple payment methods in significantly less time than before,” said Kumar.