Cross-Border Growth Presents Opportunity for SMBs

Digital payment providers with global capabilities may be the key to small and midsized businesses’ e-commerce success—that’s one finding reported in a recent study commissioned by ETA member Wirecard and conducted by Forrester Consulting.

The study sought to identify the greatest opportunities and most pressing challenges for small and midsize businesses in the United States and found that cross-border growth represents both. Global e-commerce sales surpassed $1.9 trillion in 2016 and are expected to exceed $4 trillion by 2020, accounting for roughly 15 percent of retail spending worldwide and representing a world of opportunity for smaller U.S. businesses.

Forrester surveyed 200 representatives from midsize American companies and found that at least half aim to increase their presence in four key markets: Europe, Asia, Canada, and Central America. More than two-thirds (87 percent) of respondents identified cross-border growth as a critical or high priority over the next two years. However, less than one-third believe that their current technology will meet their needs—or these goals—in 2020.

The study revealed that success in the global e-commerce arena can be determined by factors related to compliance, security, and customer service—all of which play a role in the customer’s payment experience. The majority of those surveyed consider payment acceptance capabilities to be critical to their cross-border e-commerce efforts. Yet, nearly three-quarters said their businesses rely on at least three providers to achieve those capabilities, and more than half admitted they have experienced challenges working with multiple providers.

ETA’s upcoming TRANSACT Tech Atlanta event on June 20th will focus on the trends driving growth in the SMB segment. Click here to learn more and to register.