Ranging from news articles to recent CEO interviews.
(Los Angeles, CA) March 31, 2014—American small to medium-sized businesses (SMBs) are struggling to keep up with a thriving global eCommerce economy led by four nations—Brazil, Russia, India and China (BRIC). Payscout, Inc., says that multi-currency processing would give American SMBs the ability to capitalize on the BRIC nation(s) and compete where demand is high, but current regulations make the segue into the marketplace laborious and nearly impossible.
Just over a decade ago, the U.S. was the world’s largest economy, with a GDP of $16.2 trillion in 2001. But since 2001, the U.S. has lost more than 56,000 manufacturing facilities, and millions of jobs have been shipped overseas—the U.S. is reportedly losing half a million jobs to China, one-fourth of the BRIC empire, each year. The BRIC nation(s)—an acronym for Brazil, Russia, India and China—“has far outpaced” the United States’ constantly struggling economy, prompting concern about how America will compete. These countries, once behind the U.S., are now surpassing America in terms of economic dominance—a threat which, some say, could eventually put the world’s financial power in the hands of countries that rebuff democracy. Payscout, Inc., which specializes in seamless multi-currency processing, says that global eCommerce holds the key to rebuilding the lagging American economy.
eCommerce sales have grown twice as fast as total retail sales, signaling consumer appreciation for a greater ease of access to desired products, without having to travel and visit stores. Payscout CEO Cleveland Brown says that middle-class citizens in the BRIC nation(s) rate wealth by the ability to afford American goods—but the process is made difficult by American businesses being unable to successfully enter the global eCommerce market. Brown says that SMBs do not currently have the same ease of credit card processing within the BRIC nation(s), which makes it difficult to process international purchases. In addition, processing errors can cause irreparable damage to online businesses, largely because most are not equipped to handle the increased risk associated with overseas transactions.
Acquirer limitations and the rules of the card associations dictate the regulations that merchants must adhere to when entering a global market. Payscout’s turnkey approach—a direct result of the company’s existing relationships with overseas banks and experience in managed risk processing—helps SMBs maintain compliance and enter global markets within one week. Brown believes that with an ease in transaction processing, U.S. businesses will have access to global clients who are interested and willing to purchase their products—a move that would also boost global distribution trends and allow SMBs to capitalize on the larger eCommerce market.
“Smaller businesses have fallen short of global sales, as there have been extreme difficulties in payment processing—each country that comprises the BRIC nation(s) is heavily regulated by each country’s government, which equates to different parameters that must be met before operation is possible,” said Brown. “But there is a wealth of foreign consumers with a demand for American goods—and small to medium-sized business (SMBs) must think globally, rather than just domestically.”
Brown also stated that because each country is governed differently and has a unique relationship with the United States, America’s cooperation with these countries will determine the future success of SMBs, as well as the country’s role in the global eCommerce community.
Payscout helps businesses with low-cost merchant processing, allowing small to medium-sized enterprises across a multitude of industries to build relationships with clients while also being able to focus on global growth. Payscout specializes in online/eCommerce retailers, with a predominant proportion of card-not-present transactions.