PPRO Group, the global cross-border ePayment company, along with Edgar, Dunn & Company, announced on Tuesday (Oct. 16) that new data shows U.S. merchants are lagging behind other countries when it comes to cross-border eCommerce.
In a press release issued on Tuesday (Oct. 16) in a whitepaper titled: “Is U.S. eCommerce ready to take on the world?”, the companies found that U.S.-based online merchants are behind when it comes to taking advantage of global eCommerce growth, as most are not offering enough or any local payment methods to international markets. Alternative payment methods include those outside of traditional credit cards, PPRO Group said in the press release.
The company predicts that by 2021, only 15 percent of global online payments will be conducted with a credit card, underscoring the growth of local payment methods. PPRO found that a little over one-third of American merchants sell across borders, which is low compared to other markets around the world. PPRO said its data shows that by 2021, cross-border sales will account for more than 17 percent of all U.S. eCommerce.
“The U.S. is a world leader in eCommerce, with merchants enjoying astonishing success in encouraging consumers to change their shopping habits to buy online rather than in-store. But U.S. merchants are significantly less likely to sell cross-border than competitors from other major markets,” said Steve Villegas, vice president of partner management at PPRO Group, in the press release. “With the lion’s share of eCommerce growth now coming from markets outside the U.S., that has to change. Now is the time for American eCommerce to go global.”
PPRO plans to officially launch the whitepaper at Money 20/20 Las Vegas, taking place between Oct. 21 through Oct. 24. Currently, PPRO supports international payment methods across 175 countries.
In July, PPRO announced a $50 million round of investment led by PayPal. In a press release, PayPal said that in addition to its investment, Citi Ventures and returning investor HPE Growth Capital participated in the round of fundraising. PPRO enables businesses to accept more than 140 alternative payments around the globe, partnering with payment service providers and financial institutions. Through this investment, PayPal said PPRO plans to accelerate the expansion of its payments platform and international presence of its alternative payments-acquiring business.