SOURCE: EntroPay

EntroPay

September 22, 2009 09:32 ET

Survey: US Affiliate Marketers See Big Opportunities Overseas but High Costs and Big Delays With International Payments

20 Percent of Affiliate Marketers See Payment Processing as One of the Biggest Challenges Facing the Industry

LONDON and NEW YORK, NY--(Marketwire - September 22, 2009) - EntroPay, the first provider of virtual prepaid cards in Europe, today announced the results of a survey conducted at the recent Affiliate Summit East 2009 in New York City, the premier event for the affiliate marketing industry. A survey of 100 show attendees including merchants, affiliates, and affiliate networks found that 98 percent of US affiliate marketers are primed for expansion overseas but most were unprepared to manage the costs and delay of international payments.

"Affiliate marketing is a powerful tool for driving traffic and ecommerce sales especially when executed on a global scale," said Alex Mifsud, chief executive officer of EntroPay. "Despite immense international growth and advancement in the affiliate marketing industry, today most affiliate networks still rely on archaic and costly bank checks and wire transfers that are just not suitable for international transactions."

Survey respondents ranged from affiliates with 2 or 3 brands, to over 1,000. Over half of the affiliate marketers surveyed were already making payments abroad. Of those with experience making or receiving international payments, over 63 percent were dissatisfied with the speed and cost associated with international payments. 20 percent saw payment processing as one of the biggest challenges facing the industry.

Administrative costs associated with international transactions can be as high as $40 per transaction in terms of processing costs. This does not factor in the cost of currency exchange that is often left to the affiliate to cover when sending payments across international borders. Over 67 percent of those surveyed still use the slow and expensive bank transfers and checks as their predominant payment method, rather than the more efficient pre-pay solutions. Only 23% of respondents were using a pre-pay solution which can reduce this cost substantially.

Speed proved to be an even bigger concern for these North American affiliates, which is not surprising since cash flow can be a challenge to growing affiliates. Over 50% of respondents were dissatisfied with the speed in which payments were made, and almost 20% felt it was the biggest challenge to the affiliate marketing industry.

EntroPay and Affiliate Marketing

According to a Jupiter Research report, spend on affiliate marketing will hit $3.3 billion in 2012. However, the industry is not without its challenges. Decreased marketing budgets, developing an industry standard for making payments and increasing speed were the top three challenges that EntroPay's survey respondents identified at the Affiliate Summit East. Fraud was also identified as a pain point.

In recognition of the increasing importance of international payment processing to the affiliate marketers, EntroPay hosted a booth at the event where they demonstrated their 'simple, instant, global' payment service.

"The success of our presence at ASE 2009 this year proved just how global the ambitions of the affiliate marketing industry have become," said Alex Mifsud, Chief Executive Officer, EntroPay. "That said, the numerous questions posed at our booth demonstrations indicated that there is a desire amongst North American marketers to improve their international payment processes as they embrace cross-border expansion."

EntroPay offers a simple, cost-effective alternative for merchants to pay customers and affiliates quickly, securely and efficiently. Merchants can avoid the high cost of issuing checks and make payments anywhere in the world with no currency conversion issues.

Please contact Matt Lloyd at matt@m2l2communications.com to request a full report on EntroPay's findings from Affiliate Summit East 2009, along with previous reports on affiliate marketing activities in Europe.

About EntroPay

EntroPay is one of the most cost-effective, convenient and rapid means for businesses and consumers to make safe and controlled online purchases and to remit funds around the world. EntroPay has operated since 2003 by Ixaris Systems, Ltd, which is certified to issue e-Money for EntroPay by the UK Financial Services Authority and is registered as a Money Service Business with the HM Revenues and Customs in the UK. For more information, visit www.entropay.com.

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