The payment industry is going aggressively digital. This discussion takes stock of the ecosystem and its trends.
Sramana Mitra: Let’s start by introducing our audience to 2Checkout and yourself.
Erich Litch: I’m Erich Litch. I’m the Chief Revenue Officer for 2Checkout. 2Checkout is a leading payment and e-commerce company. We do business all over the world supporting over 10,000 merchants in every part of the world and handle payment processing, e-commerce management, subscription billing and management, and all kinds of things that enable businesses to seamlessly and easily sell all over the world.
Sramana Mitra: Can you double-click down a little bit and talk about what kind of customers are the ones that you are going after?
Erich Litch: They have to be selling goods digitally and preferably, selling internationally. They should want to sell beyond their home country. We make that much easier for them than if they were to do that through a number of different providers. Especially, if you’re a software or subscription company, we allow you to sell your product in every single country all over the world and can do that pretty much overnight because of the way we’ve set up our systems. We enable you to do that without having to deal with any of that complexity.
Sramana Mitra: What would be helpful for our audience is to have you walk us through an ecosystem map in your space. We have talked to other companies that do similar things. The whole subscription management and payment processing for digital goods is an area that has other players. If you could help us understand the ecosystem map, that will be great.
Erich Litch: Let’s just use a subscription company. You’ve got a unique offering. Let’s take a customer of ours, Netflix. You want to bring it to market and sell it to customers all over the world. First, you need a content management system on the front end. You’ve got your website. Then you need some kind of engine to hold your product catalog. You need an e-commerce engine.
You might need to supplement that e-commerce engine with email marketing tools or different promotions engines. Then you’re going to have to also have something that manages the subscription billing aspects such as the ability to setup different recurring models, manage those recurring payments, and make sure that those are maximized in terms of durability to continually and successfully process those payments on a recurring basis.
Then you’re going to need a payment processor that’s going to be able to process the actual payment itself whether you’re processing PayPal or American Express. You’re going to need multiple processors to handle all of that payment processing. They’re going to have to be able to do fraud and security monitoring. You’re going to have to manage the outcome of those in terms of fraud, refunds, chargebacks, and provide support for all the people that buy your product and subscribe to it. You’re going to staff a call center or somehow have the phone answered so that you could handle people’s questions related to their purchases or their subscriptions.
For software and subscription companies, one of the things that we’re really unique in what we do is right after the content management piece. We handle pretty much everything from that point on. We have a solution that handles everything from the subscription experience all the way through to chargebacks, refunds, renewals, recurring payments. We have one admin tool and one reporting engine that allows you to see everything end to end so you can manage things like upsells and cross sells.
You can manage abandonment tools to recapture them if, for some reason during the subscription process, they are abandoned. We can reach out to customers to update their payment information. There’s a lot of functionality that we provide that makes this really easy for a company to focus on their business and not worry about all the stuff that I talked about. If you’re selling in China, Turkey, or Australia, you also have to worry about regulatory compliance whether it be from a privacy or security standpoint. We also handle all of that as well. We really reduce the complexity of doing business globally.