Today’s online shoppers are looking to purchase goods from outside of their country’s borders more and more. One in five online payments is now a cross-border transaction. This is great news for e-commerce merchants who are expanding into new global markets. But before brands and retailers dive into international market expansion, there are some important details to consider. At the top of that list: online payment options. Increasing your brand’s engagement with cross border e-commerce customers means including the payment preferences they expect. Online payments can heavily influence buying decisions, and brands who fail to offer the right mix of payment options based on local preferences will suffer the consequences, such as abandoned shopping carts and fewer return customers.
Go Beyond Credit Cards.
There was a time when e-commerce stores only needed to offer one or two payment options to satisfy customers. But as the global move towards digital transformation accelerates, even in emerging markets, new forms of online payments are constantly being developed. In fact, alternative payment methods are expected to not just overtake credit cards by 2020, but according to WorldPay, will eventually replace them altogether. Even in the U.S. domestic market, the historically ubiquitous VISA and Mastercard aren’t sufficient anymore.
Our own Global Research Report on cross-border shopping trends shows that global consumers can be turned off when a cross border merchant doesn’t offer their preferred local payment option. But any e-commerce merchant also knows that adding alternative payments to a localized site brings layers of complexity that requires management and additional resources. It seems like the options are growing all the time. Mobile wallets, such as Google Pay, AfterPay, Klarna, WeChat and Alipay, “buy now, pay later” programs, and cryptocurrency options like Bitcoin are creating a fragmented payments landscape.
What cross border e-commerce retailers need is a customized payment strategy for each market. It’s important for cross-border retailers to research the most popular payment options in each global market and ensure they’re offering the right mix. This requires the ability to offer a mix of payment methods that cater to the needs of local consumers, for both today and tomorrow.
Flow has the flexibility and expertise to help cross border e-commerce merchants demystify the management of online payments. Our console offers support for a broad array of payment options and local methods, both traditional and alternative, enabling maximum conversion and acceptance by each region where your business is selling to local shoppers.
Cross-border shopping shouldn’t be hard for your global customers — and managing their preferred payment methods should be easy, too. Get in touch with a Flow expert today for more information about how we streamline the process for the world’s top global e-commerce vendors. To learn more about which payment preferences are in highest demand by global market, download our free infographic, Payment Preferences for the 12 Largest Global E-commerce Markets.