Most shoppers who tilted towards online during the pandemic will maintain their digital habits and projections reveal that e Commerce accounts for a growing share in cross-border. It is estimated that the value of global cross-border payments in the retail sector is estimated to touch $3.6 trillion by the following year. Hence, it represents a vast opportunity for international merchants and diverse challenges to flourish on this world stage.
A study discovered that more than 450 local digital payment methods are practised around the globe. For merchants seeking to expand internationally, they should add the ability to offer payment preferences. To succeed, focusing on a specific market will serve as a chief determinant of whether they will succeed. In addition, offering local languages web pages and preferred payment methods in international currencies. More is better when it is about payment benefaction. Research shows that providing the top three preferred payment methods in any market can boost conversion rates up to 30% instead of just the top favourite.
Merchants who have adopted a new strategy to enhance sales through cross-border payments benefits from deploying payment gateways. Simultaneously multiple payment gateways present intelligent routing that efficiently and securely directs customers on merchants' sites to their desired digital payment options. It can optimise the checkout process for international customers to win and keep their loyalty.
Significance of Alternative Payment Methods to Cross-Border Success
Nowadays, unique local payment methods have been established in many nations. Research indicates that local or alternative payment methods have increased at astounding rates during the pandemic. Digital financial services witnessed a 27% increase in new users in 2020, and payment methods in Europe achieved triple-digit growth during this time.
As cross-border eCommerce transactions become more prevalent, retailers are bound to offer more than one payment option to attract, retain customers and avoid cart abandonment. According to the survey, there was 70% eCommerce cart abandonment in 2020. At the same time, there was a 35% improvement in checkout options. Other research on shopper habits indicates that 18% of customers cancel or abandon their orders due to complicated checkout processes, and 7% lack payment options.
Gateways Route Customers toward Desired Payment Options
When integrated into merchants' websites, international payment gateway software enables online consumers to complete transactions securely and swiftly. Countless retailers use a payment service provider (PSP) to efficiently manage payment gateways, shopping carts, value-added tax, and foreign exchange (FX) rates. Deploying multiple international payment gateways gives international customers more customisable payment options and simplifies their checkouts. Leveraging various payment gateways also empowers retailers to analyse and obtain shopping data that optimises every transaction for every market.
Apart from safe and various payment options, eCommerce retailers should ensure that online transactions are transparent, efficient, and straightforward to navigate. Therefore, having complete knowledge of one's market and tailoring the checkout experience to its needs drives customer engagement and retention, facilitating retailers to continue growing their eCommerce footprint. Mobile devices have become the most rated and most accessible mode of payment, with 81% of cart abandonment. Shopping on mobile devices has accelerated in many global markets.
