Selecting The Right Global Payment Service Provider For Your eBusiness Needs

Peter Sheldon

This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals

Globalizing your eCommerce business isn’t just an option anymore — in many cases, it’s an imperative. But accepting global online payments is VERY complicated. It includes the transmission of sensitive financial information, an array of diverse payment methods, a long list of players in the transaction stream and many regulatory considerations. Add to the equation the increasing importance of mobile and the seamless user experience the consumer is demanding, and it’s enough to make even the most seasoned eBusiness professional’s head spin. So what are we to do? eBusiness professionals are often looking to partner with payment service providers (PSPs) to help manage and streamline these complex payment processes. But the PSP vendor landscape is crowded and highly competitive, leaving eBusiness professionals unclear of which PSP will best serve their needs.

Together with payments analyst Denée Carrington and commerce technology analyst Peter Sheldon, we just published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help them meet the global payments challenge. Here are a few key questions eBusiness professionals should consider before signing on with any PSP:

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RWD Is A Natural Evolution Of The Web — And It's Here To Stay

Peter Sheldon

When I first looked at responsive web design (RWD) back in June 2012, only early adopters (mostly startups, agencies and media firms) had taken the plunge. Back then, developers and web designers alike were still getting to grips with the concepts required to build responsive sites. eBusiness leaders, although intrigued by the premise of a single site able to adapt across devices, were mostly playing a pragmatic wait-and-see game. Fast forward almost 18 months and much has changed. Although hype and confusion continue (not least due to a perplexing set of technology terms and marketing buzzwords), RWD has firmly cemented itself as a natural evolution of web, and it’s here to stay.

In our latest research on RWD, my colleague Mark Grannan and I spoke to over 20 digital agencies and end user clients that have adopted responsive design. We found that RWD sites are still far from ubiquitous; however, adoption is growing steadily. As web traffic on mobile phones and tablets is increasing to the point where firms must optimize for these touchpoints, RWD is taking center stage in many enterprise discussions.

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Forrester Research Takes Six US Mobile Auto Insurance Apps Out For A Test Drive

Ellen Carney

What We Did And Why

Insurance carriers are pulling out the stops when it comes to their mobile strategies. It’s now rarer to find an insurer that doesn’t offer at least one app plus a mobile site. But just how effective are all these mobile insurance apps and sites at meeting the needs of auto insurance customers? At the end of the summer, we decided to check out the mobile sales and service functionality that leading US auto insurers – Allstate, Farmers, Geico, Liberty Mutual, Progressive, and State Farm – were offering to their customers. We reported what we learned in our just-published 2013 US Mobile Auto Insurance Functionality Rankings report.

Our approach followed these steps:

  • Define a user scenario. We defined a target persona: Ryan and his wife Nicole live in Chicago and are in the market for a new car and will need to change the vehicle on their policy. Their mobile goals are to research and apply for insurance, pay their bill, see how easy it is to file and manage claims, get help on the road, and see what other help they can get through their insurer on a mobile phone.
  • Score mobile functionality based on user criteria. Forrester’s mobile functionality benchmark methodology examines 26 individual criteria that measure how well an auto insurance app helps customers achieve their goals. Each criterion has a potential score ranging from -2 to +2.
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Avoiding Missteps When Expanding Internationally

Zia Daniell Wigder

We’ve been having a series of conversations with brands and retailers recently about how to effectively plan for global online expansion. While approaches vary, eBusiness leaders cite similar challenges. In particular, two hurdles to successful international expansion tend to come up repeatedly in conversations:

“Our ROI scenarios are unrealistic.” In a survey of eBusiness professionals in the B2C space, we asked how quickly they expected to see a return on their investments in new global online initiatives. Over three-quarters said either in less than one year or in one to two years. By contrast, leaders of successful global eBusinesses frequently highlight the fact that payback on new initiatives takes at least two years, with many citing three years and up. As a result of this disconnect, eBusiness professionals overseeing new global businesses often find themselves falling short of expectations and struggling to secure the funds needed to succeed. Today, the mismatch between ROI expectations and performance is one of the leading reasons why new global initiatives fail.

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Snapchat Rejects Facebook's $3B Bid

Julie Ask

If you believe the idiom "a bird in the hand is worth two in the bush," then Snapchat believes it will be worth more than $6B to a future buyer — or the public through an IPO. The service is appealing not just for the UI but also for the limited time the content is stored. That appeals to me as a middle-aged adult, let alone to a teen with poor judgement who may be applying for college or a job in a few years. We've probably all felt awkward at some point about something someone posted. 

If you believe the movie "The Social Network," Mark Zuckerberg was also advised to turn down early offers. Remember the shockwaves that rippled down the West coast when Microsoft invested $240M in the fall of 2007 for what is now a 1.6% stake or $1.36B valuation? (See Source

I am not our social media expert. I am also not our primary mobile marketing expert, though I've covered it extensively at times. This POV is from a mobile analyst who has spent a lot of time looking at social networks on mobile devices. 

Here's what we do know:

- There are about 7 billion people on earth. 

- 6 billion of them have mobile phones.

- 1 billion (and growing) of them have smartphones, with nearly 400m of those in China.

- People communicate, consume media, and transact on mobile phones — in that order.

- Mobile phones sit at the core of our social graph. We create photos and we share good times with friends. I don't often post while I am sitting at home working. I post when I am out and about doing fun things that I want to share. 

What drives a $6B+ valuation beyond pure speculation, optimism, and wishful thinking?

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Banks: Add Search To Your Secure Sites

Peter Wannemacher

The majority of bank customers are now active online bankers, making the content and functionality offered on secure sites more important than ever. Forrester has just published research on which features are must-have on banks’ secure websites.

For my money, the most surprising high-value secure website feature is search (here we mean natural language keyword search that lets a user find what he or she is looking for on the site). In fact, our research revealed search to be one of the few bank website features that customers rate as above-average in importance, yet search is either nonexistent or poor on most banks’ secure sites. So we wrote an entire research report about it. Here are some highlights:

  • Online banking customers want search… We asked consumers who bank online to "rate how important it is to you that your bank's website has each of the following features" and asked them about 14 different features, including search. The majority of online bankers — 68% in the US and 63% in Canada — say search is important to have on their bank's secure website.
  • …but few banks offer search on their secure website…Just seven of the 25 largest banks in North America include search functionality on their secure websites.
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eCommerce in Brazil Charges Forward

Zia Daniell Wigder

I returned yesterday from a short trip to Brazil - I spoke at eTail in São Paulo on Monday and spent a few days meeting with retailers, vendors and agencies. Some of the takeaways from our conversations:

Omnichannel initiatives are gaining momentum. Omnichannel integration has been a topic of conversation among retailers in Brazil for several years, but it’s now slowly starting to happen. Today, most of the large Brazilian online retailers have established mobile sites or apps; by contrast, initiatives that integrate the online and offline channels are more nascent. Tactics like click-and-collect or ship-from-store, for example, are early stage but being explored by the more innovative players in the market. And while some forward-thinking Brazilian retailers have been quite advanced in terms of understanding cross-channel behavior, most have not taken major steps in this direction. Interestingly, retailers in Brazil have a particularly big opportunity in this area given that Brazilian consumers frequently supply a CPF (roughly the equivalent of a social security number) when they purchase online or offline – the savviest retailers are leveraging this customer data to identify and target omnichannel shoppers.

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Q&A With Fergal Coburn, Head of Channel Strategy and Development, Allied Irish Banks

Bill Doyle

It's happened. A critical mass of consumers have become "digital first." And the banking industry is no exception. In less than 20 years, Internet-based touchpoints have become the channel of choice for bank customers worldwide. 

Despite this massive shift in channel preferences, few banks have made a radical shift in spending. They still budget far more for their branch networks than for digital channels, and spend much more on traditional broadcast and print marketing than on digital tools like social media. This is why I’m particularly excited to have Fergal Coburn, Head of Channel Strategy and Development for Allied Irish Banks (AIB), speak at our Forum For eBusiness & Channel Strategy Professionals in Chicago on November 5-6

Five years ago, AIB was nearly ruined in the global financial crash. To rebuild its business and restore trust, the bank had to do something radically different -- and decided to transform itself into a digital bank. Fergal has led the design, delivery, and operation of AIB's digital banking capability. Fundamental to his strategy is a widely shared understanding of the need for digital. “Without recognition of this you are doomed to fail,” he notes. 

In the run-up to the event, Fergal was kind enough to answer some questions that we posed to him on what he’s been doing, how his efforts have evolved, and what advice he’d give to others on the journey to digital business. I hope you enjoy his responses as much as I do, and I look forward to seeing many of you in Chicago!

Q. When did your company first start getting serious about digital business?

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Q&A With Paul Barker, Senior Vice President and Chief Digital Officer, Hallmark Digital, Hallmark Cards

Bill Doyle

Digital will become the backbone of your entire business strategy. More than half of eBusiness & Channel Strategy Professionals we speak with agree, yet a mere 20% have mastered yesterday’s basics, such as a seamless handoff between channels.  And as Paul Barker, Senior Vice President and Chief Digital Officer, Hallmark Digital, Hallmark Cards notes:  “Today, digital has to be a part of everything we do at Hallmark.  Digital is a part of product, retail, marketing, in store, and of course on the web and on devices.”

In the run-up to Forrester’s Forum For eBusiness & Channel Strategy Professionals in Chicago on November 5-6, Paul was kind enough to answer some questions that we posed to him. I hope you enjoy his responses as much as I do, and I look forward to seeing many of you in Chicago!

Q. When did your company first start getting serious about digital business?

Hallmark launched its web site in 1997 as an ecommerce site and also free e cards.  We wanted to avoid retail trade conflict so we experimented with selling products and solutions that were not available in our stores.  That led to consumer confusion and an inability to scale.  We then migrated Hallmark.com to mostly a marketing site, with very little commerce and free e cards.  Later, we used Hallmark.com as a launching platform for new businesses such as fresh cut flowers, gifts, home décor and other new businesses.  Today we have embraced an omnichannel strategy, blending our digital solutions with retail solutions for both our stores and our mass-retail partners.  We also are pursuing more digital connecting business concepts as well as offering short- and long-form digital entertainment solutions.

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Global eCommerce In The Age Of The Customer

Zia Daniell Wigder

Last week, Forrester published an updated version of our report on The Age of the Customer (the author, David Cooperstein, blogs about it here). The report discusses the fact that competitive differentiation has been based upon the power of manufacturing, distribution and subsequently information. We’ve now entered an era in which “the only sustainable competitive advantage is knowledge of and engagement with customers.”

The report gives great examples of brands that have used both digital and traditional channels to become customer obsessed and the benefits they’ve realized as a result. Yet for a large number of brands, the journey is just beginning. This early stage is often reflected in brands’ eCommerce offerings around the globe, many of which still reflect a product-centric rather than a customer-centric approach. Today we find that:

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