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Cross-Border E-Commerce: A Step Towards Global Business Payments

COVID-19 accelerated the adoption of digital payment in the Finance industry all over the world and prompted the further emergence of Cross-Border Payments. Despite the lockdown and impossibilities to travel, Cross-Border payments happened to be a consolidating tool that integrates different spheres, countries, and payments. 

On the other side, the pandemic, with its ability to digitalize all sectors, has experienced a surge in online shopping. E-commerce becomes a driving force in the emergence of digital payments. 

The rise in digital payments has removed frictions and burdens in the transactions. Cost, speed, and reliability improvement reasoned a wider adoption of the Cross-Border payments for E-commerce.  Cross-border payments breaking down traditional shopping borders has created opportunities for businesses, making it easier for them to expand to new markets and attract a broader range of customers. E-commerce entrepreneurs try to get used to the efficient payment processing opportunities offered by Cross-border payments. 

The breaking down of traditional shopping borders created opportunities for businesses to reach new markets and attract a broader range of customers. And now, due to advancements in the payment and digital sector, small and large companies alike can easily accept and reconcile payments anywhere on the globe. 

However, despite the innumerable benefits,  cross-border e-commerce still leaves a place for doubts. The questions posed are:  

what differentiates Cross-border E-commerce from Local e-commerce? 

How to optimize your E-commerce for international trade? 

Let’s take a deeper look at the most vital part of the Cross-Border E-commerce - payments. 


    The establishment of cross-border E-commerce payment infrastructure must involve the choice of the right acquirer. The standard scheme: payment method - payment gateway - acquiring bank - issuing bank - processing - issuer approval - shopper’s confirmation - settlement - reconciliation got more complicated and nuanced if applied in a cross-border environment.

Local acquirer - Local E-commerce

  • Local acquirer means that local acquirer meets the best the needs of a local bank and its settings configured according to the bank’s demands what provides secure frictionless payment transactions without chargebacks. In general, locally processed transactions tend to generate higher authorization rates in comparison with cross-border transactions. At first sight, the choice of local acquirement in each country seems to perfectly fit the idea of seamless cross-border payments, but consider the additional workload, challenging and tangled process with a separate acquirer in each market what requires separate contracts, separate service agreements, and separate functionalities for each country. 

Cross-border Acquirer

  • Some acquirers do not see the necessity to establish local relationships with the domestic payment infrastructure of the countries where they work. At first instance, a fast,  convenient, and overload-free process can cause chargebacks and be the reason for customers’ dissatisfaction and looking for a better service provider. When a bank gets an authorization request from an unknown acquirer it isn’t familiar with, the transaction has a much bigger probability to be rejected because of caution from the bank’s side. 

Cross-border acquirer with local license

  • The best way for effective cross-border eCommerce payments is to have a single partner with local acquiring licenses in all the markets in which you operate. The choice of the right payment provider is crucial because providers with an extensive partnership network of global banks and financial services providers are an optimized variant for frictionless and seamless transactions with faster settlements, reduced chargebacks, and lower transaction costs. The businesses get the chance to balance with agility in payments across different countries and regions. Moreover, the acquirer with a local license can propose payment methods that are popular and characteristic of the region, which leads to more promotion and conversions. 

E-commerce Localization

    To make your cross-border E-commerce experience successful, the first thing that should be paid attention to is the specifications of the location. While preparing your E-commerce for international markets, it is crucial to offer a localized experience.

One should keep in mind that the positive customer experience creates more conversions and leads, so you should put maximum effort to catch your customers’ attention and ensure they remain attracted to your services. 

Speaking about the specifications we mean such nuances as the language. The more language capabilities your site provides, the better. Your customers get a more comprehensive notion of your services, easily navigate the pages and more willingly cross over to the checkout process. 

Another factor that is often underestimated is the choice of payment methods according to geography. Consumer buying habits and payment preferences differ based on geography. 

No matter what country your shopper is in, they should be offered to use whatever method of payment they use normally. Make sure you are able to accept the preferred payment methods in the regions you wish to sell. Of course, extensive choice of payment methods may lead to complexity, still, the localization of your E-commerce business demands the payment methods, widely used in this popularity. Whereas in one country people are used to paying by WeChat or Alipay, in another corner of the world the customers are just now getting habits of using plastic card payments. 

A frictionless checkout experience means satisfied customers, higher conversion rates, and increased sales - it is what you should expect when your E-commerce goes Cross-Border. It should be simple and comfortable for your customers, profitable, and hassle-free for you.  


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