Planet Payment Inc. (NASDAQ: PLPM) is teaming up with RBM Redeban Multicolor to simplify digital payment for Colombians and tourists to the country. But the partners are targeting the merchant market and they believe they have unique value propositions that will enable them to succeed.
First, Planet Payment Inc. (NASDAQ: PLPM) and Redeban are leaders in their respective market segments. While Planet Payment is a leading global processor of multicurrency payments, Redeban is a leading processor of electronic payments in Colombia with a growing list of merchant customers.
What’s the combination about?
Planet Payment and Redeban are coming together to support personalized payments and they call the offering Pay in Your Currency. It is a service that will be rolled out to Redeban’s merchant clients in Colombia with the hope that it will eliminate payment processing challenges that those merchants and their customers still face.
How Pay in Your Currency works
Planet Payment Inc. (NASDAQ: PLPM) and Redeban recently shared details about how their Pay in Your Currency service works. The services works by enabling customers to select the currency that they want to use to settle their bills. For example, a customer can select to pay with Colombian Pesos or the currency they own or the one that they think they know best. As such, Pay in Your Currency is just about payment convenience for shoppers.
As for Colombian merchants, it doesn’t matter what currency their customers use to pay their bills because they will receive their settlement in domestic currency: Pesos.
Planet Payment and Redeban have been testing the service for some time and they feel they are ready to roll it out in this quarter.
Any chance of success for Planet Payment Inc. (NASDAQ: PLPM)?
Planet Payment Inc. (NASDAQ: PLPM) and Redeban have done their assessment and established that Pay in Your Currency is a solution coming to a dress an important problem. The rise of tourism in Colombia has seen an increase of foreign visitors to the country and many of those visitors face challenge when it comes to settling bills. More than 2.5 million foreign tourists flocked to Colombia in 2014, indicating an increase of 12.1% compared to the previous year.
As such, Planet Payment Inc (NASDAQ:PLPM) and Redeban see a massive addressable market with Pay in Your Currency.