Q: What was the founding vision behind PlanetPayment? How has your organisation grown since then?

A: The founders of Planet Payment wanted to allow merchants of any size, in any country, the ability to conduct e-commerce in any currency, anywhere. We have our roots in international law and consulting. Planet Payment began processing credit cards for its first merchant on October 1, 1999. After just 10 months of operations, Planet Payment has merchants in 33 countries, including India, Sri Lanka, China, Hong Kong, Singapore, and Vietnam.

The company is headquartered in New York and has operating subsidiaries in Bermuda, the British Virgin Islands, Ireland, and the Isle of Man. Planet Payment Asia Pacific has just opened its doors in Singapore to coordinate all operations in Asia and the Pacific Rim. We have set up call centre facilities in Scotland, and will be adding additional facilities in Singapore in late 2000. The company now has approximately 75 employees worldwide.

Our strategic partners today for technology and re-selling are American Express, Authorize.Net, Bank of Bermuda, Cable & Wireless and DXstorm.com; some of our clients for our gateway and billing solutions in Asia include the trade site MeetChina.com. We currently handle 162 currencies, including 10 from the Asia/Pacific. We plan to increase our merchant base to 100,000 in two years; the number of subscribed merchants is doubling every month.

Q: What are the key trends you have noticed in online payment, and what can we expect to see in the coming year?

A: The major single trend we have seen is continuous and growing demand by merchants worldwide for affordable payment solutions. Even today, in 2000, most merchants around the world believe that there is no realistic way for them to get paid. Planet Payment was created, in part, to provide an affordable global payment solution for these merchants.

The newest trend, which will become much greater in coming years, is the need to localise payment in the currency of one's customers. This, too, Planet Payment provides. In coming years, even small online merchants will be global merchants, and as such will need to manage multi-currency businesses - this is a true revolution in global commerce.

Q: Is digital cash dead, or will it reappear in new incarnations?

A: Dead. Credit card, stored value cards, and even debit cards and its variants, will rule.

Q: What are the top three misconceptions you notice in the way companies approach online payment?

A:

1. "Getting a merchant account for an Internet business is easy as obtaining one for a physical world store." This is not so due to bank concerns of merchant fraud associated with card-not-present transactions. Planet Payment has developed both technical and business systems which mitigate bank risk and allow them to provide these services to companies which were previously outside of their acceptable risk profiles. But still, the application process is more time consuming than most merchants anticipate.

2. Merchants underestimate the risk associated with accepting orders online. Unlike the physical world, it is much more difficult to verify the identity of your customers, or judge in advance whether they will be honorable or dishonest.

3. "Build it and they will come." Merchants must aggressively promote their online businesses in order to build a client base and repeat business. Simply having a website is not sufficient.

Q: What are some of the most affordable payment platforms/technologies available for small and medium businesses (as opposed to the Big Guys)?

A: I would say Planet Payment is a very affordable payment solution for SMEs. With our solution, companies do not have to form a foreign subsidiary in order to obtain a merchant account, they do not have to purchase expensive and complicated gateway software (i.e. Cybercash), they do not have to pay any cash deposit, and we have low discount rates and transaction fees.

We provide affordable Internet payment solutions, including credit card merchant accounts and payment gateway services, to Internet merchants anywhere selling their goods and services online in real time. Planet Payment allows merchants to sell goods and services in multiple currencies, and is compatible with over 60 widely available shopping cart technologies using a state-of-the-art payment gateway powered by Authorize.net, which is the most reliable gateway service provider in the U.S.

Q: Do you see concerns over Internet security abating, or are they still unaddressed?

A: Security will always be a concern - just as it is in the physical world. Do you know anyone who leaves their shop unlocked when they go home? Who leaves his cash drawer open when he walks around the counter? There will always be ingenious criminals, and always a reason to develop better, more secure systems.

Q: How do you see the online payment market evolving in India? What are the key drivers, inhibitors and dynamics involved here in such emerging economies?

A: India is a huge market, with a sophisticated technology sector. We see India as being one of the major e-commerce markets in coming years. The key inhibitor has been bank reluctance to provide merchants with facilities to handle card-not-present transactions. This is due to fear of merchant fraud. Planet Payment has developed a solution which mitigates bank risk, while at the same time providing merchants with what they need to conduct their global businesses.

For the original article, click here.