Study: U.K. CNP Firms Not Ready for International Expansion
July 15, 2010
Thirty percent of CNP businesses in the U.K. have international growth plans within the next one-to-two years, but most do not have the payment systems in place to properly support European customers, according to the results of a new survey. Payments processor Chase Paymentech Europe Limited commissioned the study that surveyed 200 businesses that accepted card-not-present transactions. With Western European online retail sales projected to grow 11 percent to £153 billion ($236 billion) by 2014, many organizations are looking to cross-border sales to build or increase their European customer base. When questioned, however, 79 percent of finance directors felt that their payment systems were not ready. “There is no doubt that e-commerce remains the most profitable channel for retailers but it does come with its own challenges especially as organizations look to make the move beyond their domestic market,” said Shane Fitzpatrick, President and Managing Director, Chase Paymentech Europe Limited. “Having a single payment system in place which allows an organization to trade in multiple markets in a wide range of currencies is advantageous both in keeping overheads low; helping increase checkout conversion rates and providing customers with a first-class experience.” The survey sampled 200 merchants of all sizes across all industries that derived at least some of their sales from CNP purchases. The survey was administered in spring 2010.