PayPal is urging Aussie small business owners to capitalise on the expected surge in cross-border trade by leveraging technology platforms, the country’s ‘e-trade readiness’ and global demand for Aussie products and services.
PayPal believes Australian small businesses are in an enviable position to benefit from the rising demand for local goods and services. PayPal research shows that six core markets – Australia, US, UK, Germany, Brazil, and China – are collectively expected to triple online cross-border purchases to $307-billion by 2018. The impact on SMEs will be equally impressive, says PayPal, with Australian online sales to foreign buyers forecast to grow threefold to $16.1-billion by 2018.
In a PayPal White Paper on cross-border trade released last week, Emma Hunt, Director Small Business, PayPal Australia, identified key factors fuelling the growing potential for Australian SMEs.
“Real and virtual barriers to trade are rapidly disappearing, helped by the growing use of the internet for commerce and enabling payment platforms,” Hunt said. These factors, combined with resource-rich economies entering the global online marketplace and Australia’s reputation for producing quality goods and service, have all created unprecedented opportunity for our small businesses to expand into new markets, find new customers, and diversify their income streams.”
“While some business is still being done in a simple buyer-seller format, increasingly, Australian companies are seeking new channels for sales – and online business is a good example – by contributing sophisticated products or services that form part of a global value chain,” Bruce Gosper, CEO of Austrade, added.
“Austrade is targeting a lot of its advice and information to support the development of online commerce and by so doing helping Australian businesses remain in touch with these digital developments,” he said.
Australian businesses are particularly well prepared to ride the wave of global trade activity, given the country’s ranking as the top e-trade ready nation in the G20. It has a leadership position in its use of electronic payments coupled with affordable internet access and high smartphone penetration, and is supported by a well-developed regulatory framework for commerce.
In June, PayPal launched PassPort, giving SMEs access to verified information about relevant rules and regulations in key countries, including ‘how-tos’ about leveraging the national characteristics and traits of export markets to maximum advantage.
“Increasingly Aussie SME owners understand that cross-border trade is essential for successful business development, but they are often constrained by two scarce resources – time and money,” Hunt explains. “By continuing to enhance the digital and market literacy of our merchant partners with tools such as the PassPort website, PayPal helps SME owners save valuable time; time better spent honing their craft and connecting with new customers across the globe.”
For more information, visit the PayPal PassPort website now.
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