The challenge

Our client is a leading financial services provider that enables local and cross-border payments and innovative financial services across 50+ emerging markets.  

The client engaged EDC to assess market attractiveness relating to e-commerce, m-commerceand online payments for multiple key markets in LatAm, Central & EasternEurope, Southeast Asia and Africa.

One of the key objectives of the project was to inform and educate potential investors about the current market dynamics, key market and regional opportunities.

How EDC helped

EDC first developed an overview of the attractiveness of each in-scope market with respect to eCommerce and online payments based on the following core criteria:

· Growth in payments (both historical and projected over 5-year time horizon)

· Market concentration (of payment players)

· eCommerce penetration

· Qualitative assessment of barriers to entry

· Flexibility of regulatory policies and ease of licensing; local availability of payments and fintech talent, and other more qualitative market attractiveness indicators

Another key requirement was to market size domestic and cross-border e-commerce and payments measured by value and volume of transactions, current and projected (over a 5-year time horizon).

Next, EDC developed a detailed market sizing model featuring current and projected volumes of cross-border e-commerce and payments measured by value and volume of transactions, compared with domestic / local e-commerce and payments measured by value and volume of transactions. Each of the forecast models was built over a 5-year time horizon. We provided expert perspective, commentary and rational to help our client understand market trends that are supporting the growth projections

Finally, we conducted a thorough competitive analysis covering major players including their market position and payment methods supported, local presence (offices, licenses) and key products / services offered (e.g. acquiring, processing, gateway, risk management, lending).

Our entire analysis was then packaged into a report that was presented and discussed with our client.  

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