In the dynamic world of cross-border payments, achieving high conversions is more essential than ever. By 2024, online sales are projected to make up a significant 21.2% of all retail sales. This underscores the growing importance of international expansion for online merchants.
In this case, achieving high conversions is crucial for merchants looking to expand their reach and tap into new markets. One of the keys to unlocking this potential is localization. In this article, we’ll dive into the critical role of localization and share tips on what to expect from a Payment Service Provider (PSP).
The Power of Payment Localization
Payment localization is your secret weapon for success. It’s all about tailoring your global payment options to match the local payment methods of the countries and customers you serve.
Why is this so crucial, you ask? Well, online shoppers in new markets expect a variety of payment options when they’re ready to hit that “buy” button. To make it happen, you need a solid strategy and the right infrastructure to support these local payment methods.
So, how can you bring local payment methods and currencies into the mix? The solution lies in a payments provider that allows you to effortlessly accept local payment options in multiple currencies. It will supercharge your offerings and keep costs in check. Who doesn’t love that?
We’ve been closely observing our merchants, always on the lookout for ways to elevate their payment strategy. Here is an example of one moment, where we were able to help.
Take a look at how small adjustments can make a big difference to your bottom line:
Problem: One of our leading international eWallet merchants only offered euros (EUR) as a transaction currency, including in India, which was a new market it was trying to penetrate. Our deep analysis and industry benchmarks revealed that this approach was hindering approval rates. Issuers were declining transactions left and right, and shoppers were ghosting the payment process. The merchant was losing precious customer relationships in the process.
Solution: After our analysis, our specialized ePayments team suggested a logical solution: why not offer the local payment currency of Indian Rupees (INR)? By doing so, we predicted a significant boost in approval rates and conversions. The logic was simple: cardholders would be less likely to abandon ship.
Outcome: Our merchant took our advice and swiftly implemented Indian Rupees as a transaction currency in India. And the results were great with a 22% increase in approval rates for all traffic from this country. So, it impacted up to $1M in monthly sales volume.
You Don’t Have to Support All Local Currencies
You don’t have to support every single local currency out there. Consider the markets you’re targeting. It’s all about understanding where your customers reside and what they expect from you. Let’s break it down.
For instance, if you’re not actively serving customers in or from China, there’s no need to dive into the details of UnionPay, Alipay, and WeChat Pay. On the other hand, if you’re a European merchant eyeing the Netherlands or Germany, you definitely don’t want to miss out on direct debits like SEPA or iDeal. By offering your customers their preferred payment methods, you’ll unlock revenue optimization opportunities. It’s a win-win!
To get started, ask yourself these key questions:
- What language do your customers speak?
- Which currency do they use?
- What payment methods do they prefer?
- What regulations govern their specific country?
Now, you might be thinking, “that’s a lot to handle!” We hear you, and that’s exactly why PSPs exist — to be your guiding light through the payment localization process. However, it’s crucial to ensure that your chosen PSP has the necessary data and expertise to analyze your business and provide advice based on industry benchmarks.
Localization Strategy: What to Expect from a PSP?
PSPs are here to assist in facilitating online payments and streamlining your payment process. They understand that every business is unique, which is why they tailor the entire payment experience to fit your specific dynamics and cater to your customer’s preferences.
That means supporting local payment methods, accommodating various languages, and seamlessly handling multiple currencies. With their expertise by your side, you can confidently expand your international presence and simplify the way you do business in new markets.
But that’s not all. A good PSP is your partner in optimizing the checkout process to boost conversions. They know the tricks of the trade and can guide you on enhancing your checkout flow, reducing friction, and delighting your customers every step of the way. It’s all about maximizing conversions and boosting your bottom line.
And let’s not forget about compliance! Operating in multiple markets means you need to stay on top of the regulations and compliance requirements in each one. Lucky for you, a reliable PSP will have your back, ensuring you remain fully compliant in every market you operate in. It’s a weight off your shoulders, allowing you to focus on what you do best — growing your business.
Your Localization Strategy Matters
As online shopping continues to claim a larger slice of the retail pie, getting your localization right is key to unlocking more transactions and higher conversions.
We’ve walked you through various strategies—from knowing what payment options resonate with local customers to leveraging the know-how of a PSP. These practical tips set you on a course to master cross-border payment methods, keep your customers happy, and elevate your business.
If you’re ready to increase your conversions and take your global payment game to new heights, look no further. Connect with us today and let’s explore how we can transform your business with our online payments solutions.