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That Brexit is not an impediment to Spanish e-commerce

After the new rejection of the British Parliament to the agreement on the Brexit, the ecommerce looks for the way to continue operating with relative calm before the uncertainty.

Theresa May has suffered a new setback, the umpteenth. As the forecasts predicted, the House of Commons of the British Parliament has rejected by 391 against and 242 votes in favor of the agreement on the Brexit negotiated by the Government.

Uncertainty will be installed in both the political and business areas. In the Spanish case, according to data from ICEX, the flow of gross investments of Spain in the country was 1,120 million euros between January and June 2018. Waiting for the data of the last semester, everything predicts that the year will end very far from the 15,612 million of the previous year.

The ecommerce worries about the Brexit

The ecommerce industry seems especially worried. Not in vain, the rate of implementation of electronic commerce in the country is 63% in ecommerce and 48% in Mobile commerce, according to the latest Opinium study.

11% of total online sales in the United Kingdom come from the European Union, as extracted from the data of FinTech Futures. In light of these data, it seems obvious that continuing to operate normally with the United Kingdom is one of the main concerns of European and, specifically, Spanish e-commerce companies.

Payment platform for business peace of mind

Payments are one of the sources of that concern, so having a payment platform that guarantees to continue operating normally is a peace of mind.

The international platform of secure payments Klik & Pay is one of the few that offers this peace of mind to its Spanish customers. By operating with a double license (European and worldwide), it allows Spanish online stores to operate in the United Kingdom without any complications.

Klik & Pay also explains the keys to this process so that its clients can find their bearings in this sea of doubts. In his analysis, it has not been a surprise the result of the last votes of Parliament and points to the date of March 14 as critical. A new vote could allow the United Kingdom to leave the European Union without an agreement (the dreaded no deal).

The no deal and the cash problems

Faced with a possible no deal, the Bank of England recommended to European banks and insurers to start up “contingency plans”, that is, to buy euros to guarantee a certain stability in case the pound sinks.

In addition, the Bank of England, informed banks of the possibility of falling short of cash in two weeks, which is why the May government was forced to open a credit line (in euros) for banks they can continue to operate with total normality.

With less access to cash, in a country where debit and credit card payments are already higher than cash, it is essential that businesses have a variety of payment methods, explains Klik & Pay.

More emphasis on this aspect should still be done by online stores. In the United Kingdom, 77% of adults have purchased online in the last three months. In fact, millennials make 54% of all their purchases online (according to a UPS study). All these data leave no room for doubt, businesses have to prepare for a scenario in which people have less access to cash and turn their purchases to the electronic medium.

Regarding the Spanish ecommerce, the entity ensures that those businesses that have the Klik & Pay payment gateway will be able to continue operating in the United Kingdom as before.

Also published on Medium.

Published inE-commerce

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