Advantages of Localizing Payments
August 3rd, 2020
Whatever you are selling, you want to sell more and offer more people access to your product or service. Cross-border selling has increased by 25% from 2015 to 2020. Additionally, cross-border e-commerce sellers manage to boost their sales by an average of 10 to 15%. When expanding to new markets, you will need a strategy to entice buyers to make the purchase. One key aspect of your plan is payment processing.
Globally, the traditional payment methods are bank wire, checks, and credit cards. Online payment gateways are becoming more popular as they offer different types of payment options in different currencies in different markets. While some markets still use cash, others are app-based. Knowing each market trend can be daunting to a business. Smart business owners use payment hubs to provide information about gateways and offer solutions that benefit the company and the shopper. Familiarity when attracting new customers in new markets is essential.
Shoppers want to see what the product costs in their local currency. In some countries, selling online can be more difficult for foreign companies. Brazil, Chile, and Argentina have strict currency laws that make it illegal to publish prices in anything but the local currency. Navigating these laws and rules is simplified with a payment hub company. Start with one local payment method and see how that affects sales. If the results are promising, then you can add additional local payment offerings.
When offering local payment methods, you are establishing a level of trust with the consumer. The familiarity of seeing a website in their language, product price in their local currency, and checkout pages in their preferred payment method show that your company understands its market.
Beyond the initial transaction, you will want to add other tools to gain repeat customers. Will you offer additional services like credit card updating, subscription services, smart payment routing, or resubmit or correction options if the initial transaction declines? These added conveniences are standard options that customers expect to see from your website.
When choosing the payment hub for your business, do your research, and ask the questions to expand your business. For more specific information about international payments, read this article: https://www.forbes.com/sites/forbestechcouncil/2020/02/14/international-payment-processing/#6875bd863dbb.
Photo Credit https://stories.freepik.com/finance”>Illustration by Freepik Stories</a>
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