Since Adobe acquired the commerce platform, Magento has moved further into the e-commerce market with its newly announced payment and risk management solution.
“We were looking for a partner within e-commerce,” said Shantanu Narayen, CEO of Adobe on centre stage at MagentoLive. “We didn't appreciate quite how much value an e-commerce ecosystem would be. I'd better not compliment them too much or they'll raise their price.”
The combination of Adobe’s content engagement and data analytics capabilities and Magento’s e-commerce management platform and new payments solution will give merchants end to end insight into their e-commerce when it is launched in Q1 2019.
“There’s a network effect with the Magento platform,” Andy Barker, head of payments at Magento, explained on the sidelines of the event. “Historically, the low-level banks, slow to innovate and encumbered with regulatory burdens, were innovated by a variety of payment service providers (PSPs) who sat on top and acted as pseudo gateways; the PSPs focused very narrowly on a handful of acquirers and integrated server to server.
“Then you had the payments 2.0 companies come along like Stripe and Braintree who made payment integration remote and easy. They were able to innovate far more quickly and more agile in the face of legislation, particularly PCI; they were providing value to the end merchants that the banks or PSPs simply couldn’t do.
“The Magento payment solution is effectively integrating and aggregating Stripe, Braintree and Klarna. We can aggregate PSPs for a holistic view, putting them all in the Magento admin panel where our merchants live and breathe for processing orders, meaning they can manage reconciliation, chargebacks and refunds all in the same place.
“This new solution solves the backend operational problem that PSPs are unable to do and provides the merchant with an aggregated, holistic and insightful view of their platform, leaving merchants to focus on their own business,” said Barker.
Despite the Magento network being composed only of select PSP partners, Barker pointed out that control still rests with the merchant. “As well as giving merchants the ability to interoperate with different marketplaces like eBay and amazon, we’re an agnostic partner.
“Ultimately, the merchant has control to select the vendors they want and the beauty of the model is that Magento has to ensure the reliability and excellence of the product or customers will go and use another partner.”
News of Adobe’s acquisition of Magento was no doubt met with great anticipation among the merchant community to leverage the data analytics the parent company brings to the e-commerce world.
“The Magento platform cuts through the chaff in the payments industry,” said Barker, “there are so many shiny new toys and methods that are considered the next best thing. Through analysing the data collected from the entire ecosystem it gives you real insight into which methods work for each individual retailer.”