The next Alternative Payment Method (APM) we look at in our series is SafetyPay. In this blog post we’ll identify how you, as a merchant, can benefit from offering SafetyPay. We’ll also look at possible future opportunities for you, along with its market penetration and the verticals it’s optimised for.
We looked at Sweden-based Trustly previously, which can be viewed here.
What is SafetyPay?
SafetyPay enables consumers to pay in their local currency from their own bank account. This service is optimised to process both cash and non-cash transactions. Cash transactions are completed over the counter at the bank after the online order has been placed.
What territories and verticals are currently served by SafetyPay?
SafetyPay serves 15 markets worldwide. At the moment, 11 of these are integrated with emerchantpay: Austria, Belgium, Brazil, Chile, Costa Rica, Germany, Ecuador, Spain, Mexico, the Netherlands and Peru.
Payments can be taken from customers in travel and airlines, as well as forex, retail and gambling.
How big is SafetyPay’s market penetration?
Allowing for non-card payments increases SafetyPay’s reach by a significant amount, especially for merchants operating in Latin America. According to PPRO, just under a quarter (23%) of consumers in this region still use cash payments. Moreover, bank account penetration stands at little over half (51%) – 11% below the global average. These findings highlight the importance of cash payment services for merchants in these markets.
SafetyPay’s bank transfer capabilities means that it’s also useful for merchants in Western Europe. In the Netherlands, for example, PPRO highlighted that way over half (59%) of payments are made via bank transfer. Considering that almost all of the country’s 17.1 million population (99%) own a bank account, merchants that adopt this service will be well-poised to satisfy customer needs.
How popular is SafetyPay?
Throughout Latin America, SafetyPay has over 50,000 collection points in Brazil and more than 20,000 in Mexico. Along with this, there are in excess of 70,000 in the United States. SafetyPay’s reputability can also be demonstrated by the names of its international clients, which include both Skype and Spotify.
What opportunities are there for using SafetyPay?
Integrated with over 100 banks worldwide, SafetyPay has a potential reach of over 300 million customers. While cash payments are a beneficial addition in Latin America, in the current landscape, the versatility of its offerings mean that it’ll be an effective payment option if consumers in this region adopt more of a cashless approach in years to come.
Because customers are using familiar and trusted payment methods, the conversion ratio is also close to maximum. The diversity of SafetyPay’s capabilities, along with its no risk for fraud and chargebacks, also mean that merchants wishing to expand into more of SafetyPay’s served markets will be well-placed to do so.