CyberSource and PayEase Open Doors to eCommerce in China
Gives U.S., U.K. merchants broad online payment support in high growth market
Reading, UK and HONG KONG, China—29 April, 2008
With a rapidly growing population of online consumers, the Chinese market is a key target for many leading eCommerce brands around the world. However, technical and logistical issues pose significant challenges for merchants wanting to enter the China eCommerce market. CyberSource Ltd (NASDAQ: CYBS) and China-based PayEase Technology Ltd. are collaborating to remove these barriers and facilitate merchants’ entry into the China market.
Past challenges
eCommerce solutions for selling into China have long been problematic. Only 6% of Chinese citizens hold credit cards. The common electronic payment vehicles are Chinese debit cards* , offered by over 20 different key banks in the country. Merchants seeking broad access to the market are required to integrate with each of these disparate institutions, in addition to satisfying regulatory requirements regarding licenses and domicile.
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* People’s Bank of China, as quoted by Xinhua, official press agency of the government of the People's Republic of China, on March 30, 2008.
The PayEase/CyberSource solution
The collaboration between CyberSource and PayEase provides merchants with fast and cost-effective access to the majority of online payment vehicles in China. With the PayEase/CyberSource solution, merchants gain support for both Chinese credit cards as well as debit cards from over 20 key banks. PayEase can also help foreign companies navigate the various regulatory requirements associated with conducting eCommerce in China, such as licensing requirements for Internet Content Providers, by, for example, helping to identify professional advisers in China familiar with such regulatory requirements. PayEase also offers customer loyalty programmes designed to help promote new foreign merchants to Chinese nationals that have previously purchased online.
Full Payment Management Support
The integration between CyberSource and PayEase reaches beyond payment acceptance to tap the full range of CyberSource and PayEase payment management solutions. Merchants can opt for real-time tax calculation for local Chinese value-added tax. CyberSource’s industry-leading fraud management portal, Decision Manager, supports payments through PayEase, including the ability to recognise the Chinese language character set, and incorporates country-specific decisioning rules to automate the acceptance or rejection of orders. Financial transaction reports are available in English to ease reconciliation. For more information on accepting payments in China and internationally, please visit: http://www.cybersource.com/global/.
“We see this alliance with PayEase as an extraordinary opportunity for merchants who wish to expand into the Chinese eCommerce market,” said Scott Cruickshank, CyberSource president and COO. “We believe that PayEase has unmatched credentials for managing eCommerce in China for domestic and foreign companies, drawing upon years of experience working with English-speaking and multinational corporations seeking entry into that arena. We believe our merchants will now have a unique opportunity to engage consumers in China as growth in that market accelerates.”
Fred Sum, CEO of PayEase said, “Electronic payment in China is an underserved market with great potential. CyberSource is one of the world’s most trusted and experienced payment management companies. We believe the combined capabilities of our two companies will offer significant help to U.S. and U.K. merchants that see China as a logical extension of their worldwide sales efforts.”
The PayEase/CyberSource solution is available now. A merchant’s ability to accept credit and debit cards through PayEase is subject to satisfaction of certain eligibility criteria and regulatory requirements.
PayEase’s major shareholder, Capinfo Company Ltd., a public company in Hong Kong, is affiliated with the Beijing municipal government and was initially formed by various Chinese ministries and government entities to promote eCommerce in China.
About CyberSource
CyberSource Ltd is a wholly-owned subsidiary of CyberSource Corporation (NASDAQ: CYBS). CyberSource is a leading provider of electronic payment and risk management solutions. CyberSource solutions enable electronic payment processing for web, call centre, and point-of-sale environments. CyberSource also offers industry leading risk management solutions for merchants accepting card-not-present transactions. CyberSource Professional Services designs, integrates, and optimises commerce transaction processing systems. Over 228,000 businesses use CyberSource solutions, including half the companies comprising the Dow Jones Industrial Average. The company is headquartered in Mountain View, California, and has sales and service offices in Japan, the United Kingdom, and other locations in the United States including Bellevue, Washington and American Fork, Utah. For more information, please visit the CyberSource Ltd web site at www.cybersource.co.uk or email uk@cybersource.com.
About PayEase
PayEase is currently China’s leading payment & loyalty marketing service provider. PayEase is the first payment service provider in China established in 1999. Through Chinese banking relationships (nationwide), PayEase facilitates payments among merchants and unifies functionality through a single interface. PayEase’s secured platform provides a unified solution that includes various channels of payment such as Online, Mobile, POS, Call Centres, and E-wallet. In addition, PayEase supports over 65 different types of debit cards and four international credit cards. Additionally, PayEase offers tailor-made CLP (Consumer Loyalty Programme) to our clients enhancing their strength in building loyal relationships with their customers.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995
Statements in this release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding the company's expectations, objectives, anticipations, plans, hopes, beliefs, intentions or strategies regarding the future. Forward-looking statements in this release include, without limitation, statements regarding: (1) the growth of online consumers in China; (2) Chinese market being a key target for leading eCommerce brands around the world; (3) the CyberSource PayEase relationship being an extraordinary opportunity for merchants; (4) PayEase having unmatched credentials; (5) CyberSource merchants having a unique opportunity to engage consumers in China; (6) growth in the China market accelerating; (7) CyberSource being one of the world’s most trusted and experienced payment management companies; (8) combined capabilities of CyberSource and PayEase offering significant help to U.S. and U.K. merchants. Factors that could cause actual results to differ materially from the forward looking statements include risks and uncertainties such as changes in changes in regulatory requirements, changes in customer needs, the risks of the economy, in general, and online economy, in particular, slowing down, new products and services offerings by the company and its competitors, any unforeseen event or any unforeseen system failures, and other risks indicated in our filings with the Securities and Exchange Commission. It is important to note that actual outcomes could differ materially from those in such forward-looking statements. Readers should also refer to the documents filed by CyberSource with the Securities and Exchange Commission, specifically the annual report filed on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission on March 11, 2008, and our quarterly reports filed on Form 10-Q from time to time, all of which identify important risk factors.
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