Q&A: Yuval Ziv, Managing Director, Digital Payments, Nuvei
Yuval Ziv is an industry veteran of seventeen years, his role includes facilitating Nuvei’s growth strategy and leading the company’s commercial teams around the world. In this interview, he discusses an exciting new white paper on the subject of online marketplace payments.
Can you tell us about your company?
Nuvei is the payment technology provider of thriving brands. We provide end-to-end payment solutions for online businesses around the world, helping them optimize their revenue and supporting them as they scale.
What have you guys been up to lately?
We’ve been busy expanding our global reach, now offering over 470 payment methods, recently adding 30 recent new integrations, helping our clients connect with more customers worldwide. These include eWallets such as Tingg and Pesalink that have hundreds of millions of users throughout Africa, as well as the most popular payment methods in countries across Latin American, from Chile to Guatemala. We’ve also launched our Pay With Crypto service, an innovative solution allowing merchants to accept 40 of the leading cryptocurrencies as seamlessly as they accept fiat money. This is particularly important because of the impressive payout capabilities of crypto, so the benefits to merchants go beyond just offering another innovative payment method.
Our growth strategy and focus on innovation is all geared towards helping our merchants reach more clients and effectively retain them, while boosting conversions and supporting them as they expand. For example, one of our recent APM integrations – PIX in Brazil – has more than 65 million users, and now it’s available to our merchants as part of our APM directory, providing a key to a dynamic market that accounts for more than half of all LATAM eCommerce. In parallel with this, we’ve announced some exciting acquisitions this quarter, which also stand to provide more value to our merchants.
What trends do you see in eCommerce at the moment?
The main trend we’re seeing in online retail is a shift to the use of online marketplaces, both for consumers and businesses. Did you know that more than 60 percent of all online purchases are made from marketplaces? And not only that – marketplace sales are growing twice as fast as purchases from other forms of online business. This has been one of the effects of the boom in online sales which we saw throughout 2020. We think it’s fair to say that marketplaces are the future of eCommerce. Because of this, we produced a white paper in collaboration with Edgar, Dunn & Company, entitled “The Evolving Needs of Today’s Marketplace – leveraging payment technology as a growth catalyst”. We believe it’s important that merchants be aware of the opportunities to be gained by joining or creating a marketplace, as well as being fully schooled as to the risks involved.
What payment challenges do online marketplaces face?
That’s a great question. Marketplaces present a unique challenge to providers because they are considerably more complex than single online stores. But at the same time the shopper experience should be seamless. Take split payments, for example. A customer visiting a marketplace may fill up their shopping cart with goods from multiple sellers, and the customer expects to pay for all of these items in a single transaction. A payment provider must be able to distribute the funds accurately with robust payout applications, taking into account reconciliation and marketplaces fees, with no interruption to the customer’s payment experience.
Another area where marketplaces present a payment challenge is to do with localization. It’s known that an online business has to provide payment options and interfaces relevant to the markets in which it operates. With an online marketplace, which may include businesses from many different locations and industries, this requirement is multiplied manyfold.
And what about fraud?
Online marketplaces are more difficult to defend against fraud because there are so many parties involved in the organization. They have to contend with seller fraud such as money laundering operations and fake sellers on top of regular eCommerce worries such as credit card theft and chargeback abuse.
At the same time, the growing success of marketplaces makes them more attractive to fraudsters, so they are increasingly susceptible to attacks.
In parallel to this are their regulatory obligations, which are more complex than lone businesses because they often operate across multiple industries and jurisdictions.
Where can we read this white paper?
A copy can be downloaded here. The research provides a full analysis of the marketplace ecosystem, a comprehensive dive into the challenges involved, and presents best practices to optimize revenue. Our research concluded that payment technology is perhaps the single most important factor in the operation of these organizations, so we recommend that all merchants read it
How has Nuvei adapted to this new trend?
We’ve actually been aware of this trend for a long time, publishing our first white paper on the subject of marketplaces back in 2017. That’s why our marketplace solution is so effective – we’ve been working on it for years!
Nuvei Marketplace offers a comprehensive package for setting up the payment infrastructure for new marketplaces, as well as tools to optimize existing ones. For example, our solution offers complete protection from fraud with a range of applications such as automated onboarding with know-your-customer (KYC) and know-your-business (KYB) processes, features which also reduce time to market for sellers that want to join an existing marketplace. It includes a highly effective split payment system with built-in reconciliation, and our Payout Suite integrated with solutions including Visa Direct, Mastercard Send, bank transfers, ACH, and more.
At Nuvei, we pride ourselves on making the world a local marketplace, and online marketplaces provide an opportunity to showcase this strength. Nuvei Marketplace solution gives businesses the ability to accept more than 470 alternative payment methods and 150 currencies worldwide, as well as 40 cryptocurrencies – and we’re continually adding more.
We believe that it’s the responsibility of a payment provider to support online businesses by ensuring that their customers’ payment experiences are completely seamless. As more and more online business is concentrated on marketplaces – revenue is expected to surpass $7 trillion by 2023 – we think that end-to-end marketplaces solutions will become an absolutely vital part of a payment provider’s offering.