The Pros and Cons for Accepting Bitcoin for Global Small Business Payments

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Whether you think Bitcoin is going to keep going up or is due for a correction, you should consider these pros and cons  – benefits and risks – before accepting Bitcoin as a payment method in your global small business. 

And it is important to know that PayPal is getting into cryptocurrency for its customers, too.

Today in Global Small Business: Unlocking the Potential of Women's Businesses in Africa

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What's affecting me, my clients, my colleagues and other global small business owners:

• Profiting From Parity:  Unlocking the Potential of Women's Businesses in Africa (report)
• 'Black swan' coronavirus casts its shadow over the global economy.
• Quote of the week: “I don’t like when investment bankers talk about EBITDA, which I call bulls--- earnings.” – Charlie Munger, Vice Chairman, Berkshire Hathaway
• Speaking of Munger, he warns there are 'lots of trouble coming' because of 'too much wretched excess'.
• The coronavirus is disrupting the global economy, including e-commerce.
• How PayPal is future-proofing its business.

Healthy Appetite for E-Commerce in the APAC Region

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According to a recent study released by PayPal and Ipsos, there is a healthy appetite for e-commerce in APAC (Asia-Pacific region), with 48 percent of consumers shopping cross-border in the last 12 months.

Ipsos recently released the 2018 PayPal Cross-Border Consumer Research, which investigates the online shopping habits of approximately 34,000 consumers in 31 countries [1]— including the Philippines. It reveals a growing cross-border e-commerce scene, with the US and China being the biggest markets in terms of online spend.

The study highlights three key findings:

1. Cross-border opportunities abound for Filipino merchants
2. Cosmetics are on the rise for APAC consumers
3. Security is a key driver of cross-border trade

Read more about how cross-border trade accelerates expansion opportunities for Filipino SMEs.

Access full report here.

Global One-Stop Solution for SMEs

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Known through inner circles as the "Square of Europe," iZettle (Sweden), a small-business tools and payments provider, has been acquired by PayPal for $2.2 billion.

PayPal CEO Dan Schulman said: "iZettle and PayPal are a strategic fit, with a shared mission, values and culture -- and complementary product offerings and geographies. With nearly half a million merchants on their platform, Jacob de Geer and his team [at iZettle] add best-in-class capabilities and talent that will expand PayPal's market opportunity to be a global one-stop solution for omni-channel commerce."

I've always been a big fan of PayPal yet I also love Square.  Don't underestimate Square (USA) -- they've rolled out a ton of new offerings that are super cool for SMEs.  Pay them a visit to find out more.

Consumers Who Shop Internationally Spend More Than Those Who Shop Locally

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Quiz of the day.  Name the top markets for e-commerce?  Who are the next big players?  Think you know?  I thought I did too until I interviewed Melissa O'Malley, PayPal’s Director, Global Initiatives and Communications.

Read the entire interview here.

Meanwhile, Melissa O'Malley says:

Our research finds that consumers who shop internationally spend nearly twice as much as those who shop only domestically–clearly, cross-border sales can be a vital source of incremental revenue for merchants. 

And related to cross-border sales, every so often I send out an Exporting Guide newsletter.  My goal is for you to love learning about how to export.  Are you on the list?  Sign up on the right sidebar where it says Subscribe.

PayPal Extends Its Global Reach by Buying iZettle

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Holy cow!  PayPal has reached a deal to buy iZettle, Europe’s answer to the mobile payments company Square, for about $2.2 billion.

PayPal’s chief executive, Dan Schulman, says, "Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile."

The deal is considered the company’s biggest takeover — and would underscore the arms race in the world of payments, especially as digital and mobile transactions are increasingly being adopted across the world.

Read more about PayPal agreeing to the $2.2 billion deal for European payments start-up iZettle.

How to Export Online

Getting Trust Back From New Zealand Small Business Owners

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Ouch.  A glitch with global online payment company PayPal has hit a number of New Zealand small businesses in their wallets.

Here's what one small business owner says:

"A lot of people don't trust PayPal anymore. For me its not about screw-ups, technical screw-ups happen all the time, you can't get angry - it's just the society we live in. But it's the way the company has reacted and I don't think I've ever seen such a poor reaction from a massive company to its clients. We just don't feel like they care."

Read more:  Small businesses struggling after PayPal glitch

Business Funds Quickly But With a Catch

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Meredith Wood, Head of Content and Editor-in-Chief at Fundera, an online marketplace for small business loans, writes about three (3) global giants that lend to small businesses but with a catch.

1. PayPal -- the catch?  "As long as you’ve been using your account to accept payments for three months or longer and have processed $20,000 in sales within the past 12 months, you’ll be eligible for a loan."  More here.
2. Square Capital -- the catch?  "With a Square Capital Loan, your eligibility is determined by your processing volume, account history, and payment frequency. Again, this means there is no credit check to determine your loan eligibility, but you must be a current customer."
3. Amazon Lending -- the catch?  "To qualify for a business loan through Amazon, your inventory needs to be stored in their FBA warehouse, and you must have about a year of sales history. You are essentially borrowing against your inventory and future sales.  The caveat, however, is that financing through Amazon is invite-only, so simply having an account with them is not enough to warrant a loan."

Read more:  The 3 Global Giants that Lend to Small Businesses

And for globalizing companies, there's TradeUp Fund, which helps export-driven companies raise flexible financing (not a loan company) that accommodates each company's unique aspiration. Let's not forget Kabbage either.  And the latest news on money-lending practices.

Taking Your Business to the Global Level via a Twitter Chat

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On Wednesday, April 6, 2016, PayPal will host an hour long Twitter Chat from the @PayPal4Business handle with successful entrepreneurs who have taken their companies to the global level.

What can you expect?  You will hear four different perspectives from four different online merchants -- each sharing key insights and tips for those looking to start a new business or for those who are trying to get their products and services into the hands of international customers.

Learn more:  Tips to Help you Launch a Global eCommerce Business

Diving Into Cross-Border Trade With SBA and PayPal

SBA and PayPal present a webinar on how to export online.

Foreign Markets Made Easy: Say "Hello" to PassPort

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Passport to opportunity one country at a time.  Local style made global. Find new customers wherever they may be.  Foreign markets made easy.  Say "hello" to PayPal's new PassPort, a website designed to educate and empower small businesses with free tools to expand their global sales.

PassPort provides country-specific guidance on seasonal sales peaks, including holidays and events; cultural customs, taboos and trends; shipping and distribution logistics; currency exchange and fees; and customs procedures and taxes. - Source:  PayPal Launches PassPort to Help Small Businesses Around the World Increase Global Sales

Take a tour:  PayPal PassPort 

Collecting Online Payments Worldwide

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When you get that first bite -- real buying interest -- from an overseas customer, how do you handle getting paid?  Do you leave it to chance (referred to as open account), ask for a wire transfer of funds in advance of the sale or talk to your banker to figure out your best payment options?

Here we outline how PayPal can be effective collecting payment on smaller international transactions.

PayPal:  A Way to Pay or Get Paid Across Borders

Should You Take The Leap to Go Global?

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Founders of Billpoint, Inc. (not sure how successful it's been), Achievo Corporation, and Israel-based FraudSciences Corporation (which appears to have been bought by PayPal) talk about what it's like to start a company and take it global.

Chen says about his leap to go global:

"You look out over the cliff, and it's exhilarating. It looks like a lot of fun. But sometimes you want to jump off," Chen said with a laugh.

It's not quite like that. Every experience is different. But doing a little homework helps immensely to reduce risks and the fear factor. That's why we created this blog!

Note: After a some cyber-searching, it looks like Billpoint, Inc. was bought by PayPal too!

Taking Your Online Business Global

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The lure of selling internationally and right from your couch is undeniable. What easier way to expand your marketplace than to move beyond the United States? The numbers speak for themselves - a market of billions rather than millions. As the late but oft-quoted business guru Peter Drucker said: “E-commerce does not merely master distance, it eliminates it.”

What should you consider before you start cross-border selling? Find out here.

Note: The article referenced may have been removed since 2006 or, as in this case, been taken over by another company. We apologize for any inconvenience.