The future of revenue growth in the payment sector is looking bright, thanks to instant payments tech and the popularity of digital wallets around the world. According to McKinsey’s 2023 Global Payments Report, the volume of electronic transactions has grown 17%, outshining the 6% growth in payments revenue over the last 5 years. This trend points to a shift in how people prefer to pay, a move towards more convenient payment options.
As an online merchant, if you’re looking for ways to boost your cross-border conversion, you’re in the right place. In this article, we’ll share some tips to unlock a whole new dimension of cross-border success with the power of local payment methods.
Let’s Start with Cross-Border Conversion
Cross-border conversions refer to successful transactions where a customer in one country makes a purchase from a business located in another country. Today, this often occurs online, allowing businesses to sell their products or services globally.
Why is this important? When you operate in different countries, you have to consider a lot more than just language barriers. Everything from currency and payment methods to shipping options and local laws can impact whether a customer completes a purchase or abandons their shopping cart. Optimizing these variables for each market you’re in, increases the likelihood of successful cross-border conversions.
In short, cross-border conversion is not just about selling; it’s all about turning global interest into global revenue.
Break Boundaries, Embrace Local
When it comes to boosting cross-border conversions, projecting a local presence is essential. Using local payment methods is a powerful way to achieve that goal. We’re talking about seamless transactions, happy customers, and a global business that’s thriving like never before.
By offering payment options that your customers know and trust, you’ll witness a surge in your conversion rates.
Why You Should Implement Local Payment Methods
Breaking into foreign territories becomes smoother when you provide payment options that locals are accustomed to. It’s like speaking their language—literally and figuratively.
When you provide payment options that your customers are familiar with and trust, it shows that you understand their needs. This boosts confidence and leaves them satisfied with their shopping experience — leading to high conversions and increased sales.
Another perk of using local payment methods is the access to regional payment networks, which frequently offer the advantage of lower transaction fees compared to their international counterparts. This means you can keep more of your hard-earned revenue while providing seamless payment experiences to your customers.
Supporting local currencies enhances convenience and transparency, resulting in happier customers who are more likely to complete their transactions.
Popular Local Payment Methods Around the Globe
The world is a diverse tapestry of payment preferences, so it’s crucial to understand both international credit cards and local payment methods. While international credit cards are used worldwide, this article specifically delves into the most popular local payment methods.
Let’s explore the specifics in more detail.
Bank Transfers
Customers can pay directly from their bank accounts, making transactions seamless. Options like iDEAL in the Netherlands and Pay Now (formerly SOFORT) in parts of Europe offer hassle-free bank-to-bank transactions.
Direct Debits
This method allows consumers to set up automatic recurring payments for subscriptions and bills. SEPA Direct Debit, for instance, makes recurring payments a breeze, especially for subscription models.
Local Card Schemes
Similar to global schemes, these domestic card schemes process transactions locally. For example, cards like Bancontact in Belgium and Cartes Bancaires in France serve as local heroes in the payment universe.
eWallets
Mobile apps offer users the convenience of storing payment details for various payment options. From Alipay in China to Google Pay globally, eWallets provide a fast and secure payment experience.
Prepaid Cards
Across Europe, prepaid cards and vouchers are widely popular payment methods. Paysafecard is the most commonly used payment method of this kind due to its anonymity, security and convenience.
Cash-Based Payments
With this method, customers make online purchases without using traditional online payment methods like credit or debit cards. Instead, they visit a physical store, such as OXXO in Mexico or Boleto Bancário in Brazil. At the store, they pay for their online purchase in cash at a kiosk or service counter, and they receive a unique barcode.
This barcode serves as proof of payment and is then used to complete the online transaction. It is a convenient solution for individuals who do not have access to traditional banking services.
Installments and Invoice Payments
Customers have the flexibility to pay after receiving the goods or in installments with added interest. Options from providers like Klarna enable deferred or installment-based payments, adding to customer convenience.
How to Implement Local Payment Methods
Looking to expand your customer reach? Local payment methods are key. They can skyrocket your conversion rates and build customer loyalty. Let’s unpack the must-knows of implementing local payment methods to supercharge your business.
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Explore, Discover, and Research
Dive into the exciting world of your target markets. Find out what local payment methods are popular among consumers. Do market research, seek advice from local experts, or team up with knowledgeable payment service providers (PSPs) who know the lay of the land.
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Stay Ahead of the Game
Keep your finger on the pulse of market trends and consumer preferences. Regularly analyze the performance of each local payment method. Monitor conversion rates, customer satisfaction, and transaction costs like a pro. With this data in hand, you’ll be ready to adapt and optimize your payment offerings for maximum impact.
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Flexibility is Your Superpower
The global marketplace is ever-changing, and your payment strategies should be, too. Be prepared to adjust your offerings based on market dynamics. Embrace new technologies, innovative solutions, and emerging payment trends to stay ahead of the curve.
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Embrace Collaboration
Don’t go it alone! Collaborate with trusted PSPs who have expertise in international markets. They can provide valuable guidance, seamless integration, and ongoing support to ensure your payment implementation is a roaring success.
Expand Your Business with Local Payment Methods
Ready to go from local hero to global superstar and take your cross-border conversions to the next level? Embrace the power of local payment methods and watch your global revenue soar.
Dive into the diverse world of payment preferences, explore new horizons, and tailor your offerings to meet the unique needs of each market. Flexibility, collaboration, and staying ahead of the game are your secret weapons.
Need help with unlocking the potential of local payment methods today and propelling your business to new heights of success? We’re here to help!