The explosion of mobile device use has revolutionized the way in which consumers and businesses make transactions today. At one time, the only way to make a payment was in person or through the mail. But the rapid development of Internet technology enables individuals to conduct business with a few keystrokes or button clicks.

The mobile payment system developed even further this past October, as it was at this time that tech giant Apple unveiled its Apply Pay system. After a simple download, anyone who has an IPhone or iPad can make a payment with relative ease, thanks to being affiliated with major payment networks like American Express, Bank of America and Wells Fargo.

“The reaction to Apple Pay has been amazing,” said Eddy Cue, senior vice president of Apple’s Internet software and services division. “We continue to add more Apple Pay ready banks, credit card companies and merchants, and think our users will love paying with Apple Pay.”

As with most developments that the California-based consumer electronics corporation comes out with, Apple Pay will likely be a huge hit with the Internet-using public, but the system could experience problems in emerging markets, mainly because access to credit and banking facilities is limited.

As noted recently in an opinion piece published by Quartz, a study performed by Upstream found that more than 1 in 5 consumers in developing nations don’t have access to credit or banking facilities. This, in effect, prevents them from taking advantage of payment services like Apple Pay.

Obstacles can be overcome through localization
Marco Veremis, Upstream CEO, indicated that a potential solution to this issue is by using a localized payment approach.

“Apple Pay’s approach in emerging markets would need to be tailored to the ways in which consumers make their purchases, but also to what they are purchasing,” said Veremis. He added that in Brazil, for instance, music is in high demand in regards to content that can be accessed and paid for through credit payment services.

Additionally, in countries like Brazil where alternative payment instruments like Boleto Bancário are commonly used or installment payments are part of the purchasing experience, Apple Pay will have to adapt.

Scott Lewin, Invoiceware International CEO, indicated that a movement to epayments is not a singular decision as many of these countries also require electronic invoicing. There are compliance rules that need to be understood as Internet orders are often governed by the same domestic invoicing policies as is the case in Brazil with the requirement of Nota Fiscal or Mexico with the usage of CFDI. As companies and consumers look to adopt epayments in the emerging markets, e-invoicing, alternative payment methods, purchasing behavior and the availability of credit and bank accounts will all become either accelerators or limiting factors in the adoption of epayments. 

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