The European Commission has recently published its greenpaper, Towards an Integrated European Market for Card, Internet and Mobile. In the paper, the European Commission outlines some of the current payment issues caused by the lack of regulation, as well as some suggestions on how to improve, with the aim of creating a single European payment market.
By Gabriel Hopkins, head of eCommerce products, WorldPay
Perhaps one of the most important reasons for this integration is to encourage a competitive market between service providers. This will expand business opportunity and provide incentives for innovation as businesses look to cater for developing technologies and customer preferences. Customers will have better and faster payment experiences, encouraging them to spend more, and do so more frequently.
Both merchants and customers will also benefit from increasingly secure payment methods, giving peace of mind, clarity, and reassurance that both sides of the transaction are protected from fraudulent activity.
That said until the guidelines are updated to be consistent across Europe, it remains essential that business use comprehensive fraud and risk management strategies to stay protected against the ever-more sophisticated activity of online fraudsters, and regularly speak to their payment providers to ensure the latest threats are monitored.
The European Commission also needs to take into consideration the impact of new payment methods, as the lines between ePayments and mPayments become increasingly blurred. However, there still needs to be due consideration given to the specific needs and regulations of each method on a separate basis.
For example, each country currently self-regulates when it comes to mobile payments, which obviously is not an ideal scenario when the ultimate aim is for consistent and efficient guidelines in the long-term, and the European Commission needs to keep these requirements front of mind.
The European Commission’s greenpaper is a positive step forward in the efforts to make it easier for consumers and merchants to transact throughout Europe. However, if no changes are effectively implemented, the situation could be even more confusing for all parties than it currently is.
The lack of unified standards means that merchants can be susceptible to fraud from overseas customers, as local knowledge is needed to identify and protect themselves against fraudulent transactions from less well-known territories. While fraud and risk solutions still need to be a part of a merchant’s toolkit, unified standards across multiple geographies will make the process of identifying fraud a lot easier in terms of management and deterrence.
If the European Commission is successful in its efforts to make payments simpler and safer through single payment regulations, merchants and consumers alike will have peace of mind and a greater opportunity to take advantage of the trading possibilities across Europe.
Ultimately, the unification of payment methods is something that will benefit sellers and buyers in Europe, and promote retail opportunities at a time when the economy is looking for a vital cash injection.
The appetite is certainly there for increased buying and selling opportunities. As such, the key for the European Commission is to make sure that these proposals become a working reality, and don’t get stuck in an endless circle of bureaucracy.
