According to PETER HARVEY, CEO of PayGate, 2015 will see many more new e-commerce start-ups along with continued growth and innovation by established niche players.
“Five years ago we’d load ten start-ups onto our payment gateway for every established business; now the ratio is more like 100 to one,” says Peter Harvey, CEO of PayGate. “The sluggish job market in traditional corporates is driving a lot of young people to start their own businesses. They have little to lose, so even when 60% of these new businesses fail they’re able to adapt and try something else. Things move fast in this market and we can’t predict who the successes will be, but overall about 10% of them do really well.”
Harvey says this rapid growth is partly driven by lower barriers to entry and faster time to market. “Services like PayGate’s PCS mean it’s no longer necessary to get a merchant account from a bank before you can sell online, and we’re putting a lot of effort into supporting the developer community that’s a crucial enabler.”
As new entrants work to gain a foothold, Harvey predicts most of the innovation will come from established niche players including specialist online retailers, airlines, ticketing companies and travel and tourism players. “These are players who’ve been around for a while, who understand their markets, know how to manage risk and are investing strategically. We’re seeing continued demand from these players for more payment methods to offer their customers as they expand into markets where credit cards aren’t common – they need to be able to accept debit cards, international payments like Paypal and cash alternatives.”
The growth of e-commerce will also drive further growth and innovation in logistics and distribution, says Harvey. “The Post Office is increasingly not a viable partner, so distribution is going to be an interesting space to watch. This week’s R20m investment in WantItAll’s logistics startup Parcelninja is probably just the start.”
Across the board, says Harvey, regulatory compliance and risk management will continue to be a key factor. “Banks, merchants and customers all need to manage the risks of fraud, and it’s a complex business. If e-commerce is to carry on growing, payment service providers like PayGate need to take the lead in reducing this complexity and offering easy, affordable fraud protection services.”
* Follow Gadget on Twitter on @GadgetZA
Welcome to world of 2099
The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.
Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.
This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.
Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.
As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.
“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”
The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.
“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube
Use the page links below to continue reading about Tan’s visions.
Win a Poster Heater with Gadget and Takealot.com
This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.
Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.
What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.
However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.
As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.
It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.
The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.
To enter the competition follow the steps below:
Competition entry details:
3. The competition closes on 31 July 2018.
4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.
5. The competition is only open to South African residents.