When you’re a company providing services to both merchants and consumers, you have a unique vantage point on the needs in the marketplace, Paysafe COO Danny Chazanoff said.
Mr. Chazonoff said Paysafe has three unique divisions. Their wallet division, which includes the brands Neteller and Skrill, operate mostly in Europe. Their prepaid division offers a product to Europeans that many North Americans may not be familiar with.
“It’s not prepaid the way North Americans think,” Mr. Chazonoff said. “It’s a cash-based product where consumers, through 600,000 distributors and outlets we have in Europe and elsewhere, can go and buy a voucher for cash. You pay €20 and get a voucher with a 16-digit unique PIN that you can spend at 5,000 merchants accepting Paysafe.”
Paysafe also has a consumer credit arm providing payment processing and group alternative payment offerings for credit and debit cards in North America, Europe and other regions.
“One thing that is unique about Paysafe besides the international footprint is we service both consumers and merchants,” Mr. Chazonoff said.
Brexit fallout both helps and hurts Paysafe, Mr. Chazonoff said. Exchange rate shifts have helped revenue, though only about five per cent is of it is from the pound. The challenge comes as Paysafe has used the UK as the focal point of their passporting license through Europe.
“So we’re looking at other options to explore where we would make the main holder of some of our licenses that we require,” Mr. Chazonoff said.
The balance between customer experience and security is one Paysafe spends plenty of time on, he added. Paysafe has authored two volumes of Lost in Transactions to address conceptions of what indeed is most important to the consumer (Read volume one here, and volume two here).
“We have both consumers and merchants we call clients,” Mr. Chazonoff said. “There seemed to be a difference of opinion with respect to what is more important to consumer.”
While most merchants believe consumers value convenience over security, that is not true, he explained. PaySafe surveyed 3,000 consumers and 300 merchants and learned more about why they are concerned about security.
“Consumers are prepared to take an extra step,” Mr. Chazonoff said. “Although it adds a little bit of overhead to the process, they gain the comfort and are prepared to take that extra time to sacrifice some convenience for security.”
Regular reports of data breaches at name retailers have consumers more concerned about how their financial information is stored there.
“It’s been eye opening for us,” Mr. Chazonoff admitted. “The consumer says one thing but the merchant says something else about consumer behavior.”
The best solution is to cater to both opinions in a sense. Provide more secure authentication and approval services that are quickly converted without security issues. Both sides win. That is why companies spend significant percentages of their revenue on developing quicker and safer ways to transact online. Learn from others’ breaches, continually test, and complete thorough due diligence on technology partners.
“People say bad publicity is better than no publicity but I don’t believe it when it comes to this,” Mr. Chazonoff said.