Lack of global payment systems stifling trade

Responding to member concerns about issues with electronic payment platforms, Guernsey Chamber carried out the research which confirmed a number of local businesses are experiencing difficulties or a lack of availability of these essential global systems. This is due to issues around the local jurisdiction and is stifling operations.

‘The survey found that more than half of the businesses which responded reported issues with the lack of major international market leader payment systems such as Stripe and GoCardless,’ said Chamber vice-president Diane de Garis, who initiated the survey after hearing members’ concerns.

While PayPal is still currently available and used by many as another choice, the Chamber said it was aware of organisations being ‘off-boarded’ by this system. There is also concern about the stability of this offer for many others going forward, according to the business group, and it is a more expensive platform.

The survey helped to identify which platforms were ideally required by businesses and what impact the lack of these was having on their operation. One business reported: ‘Stripe not providing access to Guernsey customers is seriously affecting my businesses’ ability to grow and get much needed revenue lost during Covid lockdowns – I was down £35,000 in 2020 and likely similar in 2021.’

Responses showed firms feel they are working at a disadvantage to those throughout the EU and UK that have straightforward and secure access to the global systems. Some have navigated their own way to enable payments with specially-created options but these are more costly and restrictive.

‘Payments options such as Stripe and GoCardless are universal and, in many instances, integrated into other business systems so it would not be effective for the island to try to create or adopt its own approach – we need to facilitate use of these global avenues for our local businesses,’ added the Chamber vice-president.

While many of the businesses that completed the survey are currently using PayPal or online banking, almost all expressed a need for Stripe and GoCardless in particular. Shopify and ApplePay were also seen as helpful. The organisations reported their costs were higher as a result of a lack of the global payment platforms.

A third of respondents said expansion and operation were being negatively impacted, with the restriction creating online trading difficulties and a rise in administration. Investigating options and dealing with off-boarding had taken a substantial amount of time and resource was a recurring message in the feedback as well.

The Chamber said it will work to assist businesses with resolving these issues and is engaging with the Committee for Economic Development, which the business group said had expressed a willingness to help address the problems.

• Full details of the survey findings can be found at www.guernseychamber.com.