Sunil Jhamb, Newgen Payments: "Small merchants are alike around the world"

Could you briefly describe Newgen’s business approach and target audience?

Newgen is focused on providing an end-to-end ecommerce solution for SMEs in India and the Netherlands, expanding to other European countries in 2016. Unlike most players in the space, we have a managed service approach, doing all the heavy lifting for our merchants. We provide ecommerce design and hosting, payments, and a range of digital marketing services.

By this we not only fully optimise our merchant’s conversion rate, we actually generate conversion by attracting online shoppers to our merchants’ websites through a unique portfolio of digital marketing services.

Newgen also offer payment services to e-tailers, among others. What market trends have made you consider this business model and how it is different from other payment processors?

As payments become increasingly seamless, we see less and less distinction between ecommerce and payments, especially, from the merchant’s point of view. Merchants want to be able to accept payments via whichever channel they serve and in any market their customers want to buy from.

Having an end-to-end solution enables them to focus on their core business and not worry about integrations, new payment methods, new geographies, or other concerns. All this is done at a very competitive price.

How is Newgen protecting its customers from fraudulent actions in the online medium?

Working with leading experts, Newgen has developed a custom fraud prevention tool to detect and prevent online fraud in real-time. The tool utilizes machine learning, predictive analytics and business rule algorithms to provide instant decisions on transactions – across verticals and user behaviour. Newgen also offers this tool to other PSPs as a white-label solution.

How would you define the current state of affairs in the Indian electronic payments industry and what should be done, from a regulatory standpoint, to leverage business operations?

India is at an early stage for ecommerce, but is growing quickly. Around 243 million Indian consumers are online (19% of the population), and an estimated 100,000 new consumers go online every day. Ecommerce turnover growth is 34% yearly and expected to be USD 22 billion in 2015. Regulatory restrictions on repatriation of funds and limitations on foreign direct investment (FDI) in ecommerce are definitely holding the market back and preventing large multi-national retailers from entering what should be a very lucrative and fast growing market.

Could you draw some similarities between India and Europe in terms of merchant needs and expectations from ecommerce services providers like Newgen in tapping online?

Small merchants are alike around the world. They are all small shops with not nearly enough employees and more than enough work to handle. Small merchants rarely understand ecommerce and almost never understand payments. Having a trusted partner to enable both ecommerce and payments in such a way that the merchant only needs to make key decisions is crucial for them to be able to focus on their core business.

What are the main impediments to cross-border payments and how could they be mitigated?

Repatriation and Taxation are the two main impediments for international merchants. A trusted local partner can help and guide them to overcome these barriers. Newgen is working with international acquirers, PSPs and merchants in repatriating their funds into their home country.

In your opinion, what should a payment processor consider when entering a complex market like India?

As you said, India is one of the most complex markets in the world. Regulations are complicated, open to interpretation, and constantly shifting. Even mundane tasks require approval of chartered accountants and frequently the Reserve Bank of India (RBI). Most payment processors should not directly enter India; rather they should look for a trusted partner to handle local operations.

Newgen plans to expand in a number of European countries in 2016, such as UK, Spain and Germany. In this light, what trends and developments could you identify for 2016 as far as cross-border ecommerce is concerned?

Newgen is exhibiting at the Webwinkel Vakdagen trade show in January, 2016, in The Netherlands, to focus on the SMEs that are increasingly looking to use a single provider offering the widest possible range of payment methods across Europe, as this drives convenience for their clients and reduces merchant’s total cost of ownership.

As a relative newcomer, Newgen is very pleased to join this market space by offering localised payment services across borders coupled with web development and digital marketing, all in one service package. We have an attractive welcome offer prepared for Webwinkel Vakdagen visitors.

About Sunil Jhamb

Sunil has over 15 years of experience in international sales and business consulting. Prior to founding Newgen, Sunil was responsible for Global Collect’s global sales planning and strategy, where he developed corporate strategies that drove new revenue opportunities. Sunil holds an MBA from the University of Amsterdam.

About Newgen Payments

Newgen Payments is a multi-channel ecommerce platform, international payment gateway, and digital marketing company with offices in India and The Netherlands. Newgen serves merchants and retailers internationally with a variety of ecommerce and Payments services. Their international team are experts in ecommerce, payments, and digital marketing - bringing over 60 years of combined experience in providing ecommerce solutions across the globe.