First Data and Huifu Partner
15 de Abril, 2018
Tiempo estimado de lectura: 2 minutos
The partnership will enable merchants globally to accept multicurrency transactions from a single platform in real time.
This partnership comes at a time when the Chinese payments market is poised to become crowded with US players. Earlier this year, China announced that it would allow foreign companies access to its electronic payments market for the first time, following its decision in 2016 to open its ecosystem to foreign card networks. China also boasts one of the largest payments markets in the world, with firms processing 169 trillion yuan ($26.7 trillion) in 2017, a figure that’s grown at a 75% compound annual growth rate (CAGR) since 2013. The digital payments space is especially competitive, and the cross-border e-commerce market could be a good opportunity for firms to move in on, Bloomberg has noted in the past. But the maturity of the e-commerce market in China might make it hard for First Data to compete, which makes partnering with an existing company a strategic avenue to gain share in the space.
- This Partnership could help First Data onboard more merchants that want to operate in China, which could be a valuable avenue for growth.
International segments have been instrumental in fueling First Data’s growth in recent quarters. The firm’s Global Business Solutions (GBS) revenue in the APAC region grew by 19% annually in the same quarter — an acceleration from 13% in Q2 2017 — demonstrating a strong opportunity for First Data. And China is the world’s largest e-commerce market, with nearly half of the country’s population actively making online purchases, and cross-border e-commerce grew by 80% in China last year. So expanding in the region can bring more volume to First Data and allow it to onboard merchants globally that want to sell in China.
Investing in that high-growth area can allow First Data to find new areas of growth outside of the US. First Data’s North American GBS segment — which represents nearly half of its total segment revenue, weighing heavily on its overall success — has been struggling, seeing slight revenue declines or flat performance in the past few years. But its performance has started to rebound in recent quarters, with revenue growing by 6% of a constant currency basis to reach $1.13 billion in Q2 2018. Earlier this year, First Data sold parts of its European processing business to offload a segment that was “no longer core to its strategy,” according to CEO Frank Bisignano. For the firm, the EMEA region was a slower-growing area, and offloading some of that segment allows it to focus on more meaningful initiatives — including fast-growing markets like APAC.
Fuente: Business Insider
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