Chinese payment-service pioneer PayEase announced today that it has signed a new agreement with CyberSource, a Visa company (NYSE Code: V) and one of the world's largest providers of eCommerce payment management services, for the provision of fraud management services to protect Chinese domestic online payments.
For CyberSource, the agreement builds on a business relationship with PayEase, started back in 2009 when PayEase became the first mainland China payment service provider (PSP) to use CyberSource's Decision Manager for cross-border transactions. The significance of this expanded deal is that it will cover PayEase's domestic China business -- another first.
"PayEase has successfully used Decision Manager for cross-border fraud control over the past few years and recognizes the value it brings to their growing and expanding business," said Poon Khye Wei, Regional Director of Greater China and Korea for Cybersource. "Decision Manager helps detect fraudulent behavior using a wide array of tests. PayEase will continue to benefit from this powerful feature when it starts to use Decision Manager for managing domestic fraud. This will enable PayEase to provide a more convenient, safer method of payment in the domestic market."
The add-on development work has been completed and the enhanced service is now available.
"PayEase is determined to offer its customers in China the same market-leading technology and best practice that has proved so effective in our cross-border business," said Kino Kwok, EVP of PayEase. "We strive to continuously improve our service to our customers in China by leveraging innovation and technology, and CyberSource helps us to deliver that."
Online retail sales in China have soared in recent years and are expected to hit US$360 billion by 2015, according to The Boston Consulting Group, up from around US$121 billion in 2011.
PayEase is one of the leading PSPs in China, with offices worldwide. It essentially provides a service and goods purchase confirmation platform that delivers immediately following the completion of the payment, anywhere, anytime throughout China. PayEase processes payments from a variety of different channels, including mobile payments via SMS, RFID eWallet payments, mobile dongle POS, internet banking, call centers and point of sale terminals.
"When existing customers want to expand their business with us, it says a lot about the quality and effectiveness of the technology and service we provide," said Michael Bradley, APAC Managing Director, CyberSource. "We enable merchants and third parties to convert more sales into revenue, with increased security and reduced payment risk. It means our customers, such as PayEase, are able to capture and keep more revenue worldwide. We believe it's a compelling proposition."
By mid-2012, China's internet population numbered 538 million. According to the China Electronic Commerce Association, in the year to June 30, 198 million internet users in China shopped online. However, with online fraud, one consequence is the continued practice of shopping online and paying cash on delivery, a costly and inefficient process for merchants. As such, addressing payment security and fraud management is fundamental to enabling the growth of China's eCommerce space.