According to Statista 2020, 20% of customers will stop shopping with a company if they can’t pay the way they want. Baymard Institute, in its lastest checkout study found, that 20% of customers will leave the shopping if the payment checkout is too complicated.
As it comes out of the statistics, the choice of payment gateway for your business is a key point of providing successful business activity. That’s why building out cross-border e-commerce infrastructure must involve a global payments network.
In our previous article, we talked about how to set up the payment infrastructure and localize the business, in this article we will take a deeper look at the organization and optimization of payment processes while choosing the payment gateway.
Payment gateway to increase payments efficiency
Accept Multiple Payment Methods
- To scale your business, it’s important to take into consideration the different ways and methods that will be used by your customers during shopping. That’s why your payment gateway should comprise comprehensive payment services and methods. Make sure your payment gateway supports VISA, Mastercard, UnionPay, JCB payment systems, to extend your market reach. If you’re opening an online store, check out if you are provided with WeChat Pay, PayPal, Alipay, Mastercard, UnionPay International payment methods that enable customers with the choice opportunities. In general, it should be kept in mind that localization defines the preferable payment method use. For example, if your target market is China or one of the Asian countries, then the implication of Alipay, UnionPay, WeChat Pay is more than obligatory, as Visa and Mastercard make up a tiny proportion of the payments there, as opposed to Europe, for example. Apple Pay, Google Pay and Samsung Pay payment methods, on the other hand, dominate the markets in the Western World.
- To adapt your business to reach local customers means in the first place the acceptance of the local currency. Of course, it’s more convenient if your international customers prefer to make purchases in EUR or USD. However, statistics show that people prefer to use local currency for purchases, even in international E-commerce, as they don’t need to go through the hassle of currency conversions If you don’t provide your customers with this option, you risk losing them for good as a sign of customers abandon checkouts due to avoidable difficulties they face at the time of making payment. While enhancing customer experience should be applied altogether with the improved settlement currency implication as the possibility of additional transaction fees make negatively impacts the profitability of the business. The best way to meet the E-commerce expectation and customer satisfaction is to work with the right payment processing providers that comprise different currencies in order not to incur FX fees for currency conversion. It means that the ability to negotiate in the local currency should simplify the payments for service providers could help you lower operational costs overseas.
Payment gateway to remove payments obstacles while maintaining the security
In most cases, during payment processing, the regularity and smooth interaction of your payment processor and banks depend on the way your acquirer settles the local payments. In cases when the acquirer sends requests to the local bank - the bank that matches best geographically and then, currency type is chosen. However, in our previous article, we described in detail the pros and cons of such a variant. The obvious barrier here is that the bank may be unfamiliar with your payment processor d, therefore, decline the settlement request and prevent the possibility of fraud.
So, the best way to smooth the payment routing process and ensure frictionless checkout - approval - settlement is to choose a payment gateway with numerous licenses around the globe.
- Frictionless and seamless payments mean you offer your shoppers smooth and reliable payment checkout processing. This is especially relevant in cross-border E-commerce. To build trust with your customers and guarantee risk-free payments to be sure your payment gateway integrates effective fraud prevention and security measures. Another factor that shouldn’t be overlooked - the convenience of fraud detection tools for customers. The additional password entries, the redirections to another page - all this negatively affects the customer’s impression and causes the cart abandonment.
As you can see the choice of the payment gateway is the core principle of successful cross-border E-commerce. An agile and comprehensive payment gateway can simplify, improve and promote the success of the cross-border E-commerce business and allow merchants to expand the market reach across borders.