The X-border rankings are out, and U.S. merchants are once again on top. Not far behind though are Chinese merchants who are getting increasingly better at wooing international shoppers. In the Q4 2016 X-Border Payments Optimization Index™, American retailers scored 67.8 points compared to the Chinese merchants who scored 65.9. Plus, an interview with Michael Dunworth, cofounder and CEO of Wyre, who says blockchain is the answer to unblocking the payment hurdles American and Chinese exporters face.
When it comes to wooing international shoppers, American merchants beat the rest. Once again, American retailers led the pack in our hot-off-the-presses Q4 X-Border Payments Optimization Index™, with a score of 67.8, an increase over the last two quarters. The competition, however, is now far more intense with Chinese merchants improving their score and landing second in place compared to last quarter when they tied with the U.K.
Other key takeaways from the Q4 2016 Index include:
And while the race to attract international shoppers is more intense than ever before, retailers are now taking a step back to ease their payment pain points.
PYMNTS caught up with Michael Dunworth, cofounder and CEO of Wyre, to discuss the cross-border payment hurdles slowing down business between American and Chinese merchants and how blockchain holds the key to providing a faster and secure solution to moving money around the globe.
Here’s a preview:
Dunworth said, with the increasing trade volume between U.S. and China, payments have become a major pain point for retailers who often rely on wire transfers, which can take up to three days to complete.
“P2P remittances between USA and India is extremely efficient, USA and Mexico is really efficient, but B2B transfer between here and China is just very convoluted,” he said. “There’s no simple way to do it. There are no companies that are excelling at it, and that’s what we are are going for.”
The San Francisco, CA-based company, which claims to be the fastest cross-border payment platform, relies on blockchain technology to provide faster payments.
“We are trying to get (merchants) away from the idea that waiting three days for payments is efficient.”
The company currently processes over $1 million in international payments every day and accounts for 90 percent of monthly B2B transaction volume on blockchain-based payment rails.
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About The Index
This quarter, the PYMNTS X-Border Optimization Index™ tracks the journey of 192 merchants who are vying for their share of the global eCommerce windfall.
The index takes the pulse on how merchants are improving on attributes conducive to international eCommerce in countries that include Canada, China, France, Germany, Italy, Japan, Mexico, Spain and the United States. The verdict: The U.S. is still ahead of the rest, but not by much.