Monday, April 07, 2008

Local payment gateway providers still strong despite Paypal availability in the Philippines

With the availability of Paypal in the Philippines, that allows receiving money or "cash-out" to a member's bank account, there were speculations that local payment gateway providers will close shop. However, YesPayments claim not to be affected. This according to company CEO Simon Paice. "Paypal has a slightly different focus. It is a great place to start for a small online business. But it is a big market. We have more than enough to keep us very busy. We always focus on providing a quality service but we are not suited to every merchant needs. The level of service we offer comes at a price. Our discount rates are still very competitive and keeping fraud down to a minimum is a great way for a merchant to cut costs instead of looking for the cheapest solution."

2007 was the best year yet for YesPayments. Simon shared that their monthly processing has more than doubled since Jan 2007 repeating the success of the previous year. "2008 looks set to see similar growth and the current interest in YesPayments and online processing generally gives me great optimism that we will see even better results."

A growing number of social networks have partnered with online payment providers to do e-commerce to its customer base. YesPayments had the opportunity to deal with one of them but things do not always work out like you expect as Simon has learned. "Trying to cross market or tap an existing client base is incredibly efficient but you also have to be able to support the product that you market."

"To successfully launch any kind of service online is not just a case of opening and marketing a website. You need the commercial experience and organization behind you to actually operate the business and provide a quality service or product. There are popular and successful social networks but they are not an online retailer."

"Many people think it's easy but e-commerce is anything but easy. We see many applications from entrepreneurs with little or no experience trying to go 'online' and unfortunately we have to disappoint them and advise them to get their business built first before looking to sell on the Internet. An applicant asked me recently how much money he needed to start an online business like Amazon. I wished him every success and spent some time explaining that the 'physical aspects' of any business needs to come first - not necessarily a traditional shop or office but things like the necessary planning and investment, product development, staff, supply and delivery chain. We do not try to discourage start-up business, quite the opposite in fact and I am happy to say that many learn from us and then come back when the time is right."

Simon joined the company late last year, succeeding after Paul Hubbard. He sees tremendous interest and growth in acceptance of e-commerce this year that will make them extremely busy. "We are in talks with some interesting outfits and who knows we may see the government coming to the arena finally."

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