Souheil Badran kicks off the 2010 Shop.org Summit with a Q&A discussing key trends in the world of alternative payments, advice for retailers on the best way to get started when expanding globally and insight on how executives can protect their companies from fraud.
Here's an excerpt from the post:
What are some of the key trends you’re watching in the world of online payments?
Some of the big trends that we are seeing right now are the shift away from credit cards as the primary form of online payment, merchants’ desire to find new ways to grow their business and the concern over more complicated PCI requirements and customer data storage.
Something different from a few years ago – due to the recession, tighter credit markets and higher consumer debt – is people have become less willing or able to spend using their credit cards. This is making payment alternatives like PayPal, Bill Me Later, eCheck and debit much more popular payment options that merchants should offer their customers. Each one has distinct pluses, but the bottom line is consumers will need options; otherwise, they will abandon purchases and merchants will suffer with less sales.
We are also seeing is a growing concern over data breaches and customer data storage. PCI compliance rules are getting more and more complicated. Every day we are seeing more news about encryption and tokenization solutions that can help address these needs. Being able to provide merchants with a solution that removes the burden and stress of adhering to the PCI compliance rules and the headache of storing this card data on their own systems will only become increasingly more important to online retailers.