The pandemic continues to change the mindsets of merchants and consumers, leading to a proliferation of online marketplaces and more digital transactions around the world.
Ecommerce sales have grown significantly over the past 20 months, and 43% of customers now agree or strongly agree that they will continue to shop through online platforms at the future, according to a survey. Consumers, however, remain reluctant to buy from overseas merchants, with the majority of respondents citing additional fees as their main concern.
There are, however, several ways for merchants to allay consumer concerns. Cross-border cryptocurrency transactions are a promising solution, as they allow customers to waive transaction fees abroad and are significantly faster than many other types of cross-border payments. Buy Now, Pay Later (BNPL) is another attractive option for customers around the world, and 54% of online shoppers say it would increase their willingness to buy from overseas retailers. Diving into the international market requires a multidimensional approach. It is crucial for retailers looking to expand their business in different geographies to consider the unique payment expectations and preferences of their customers.
In the last Cross-border retail payments trackerÂ®, PYMNTS examines how international retailers can increase e-commerce revenue and increase customer loyalty by tailoring their payment technology to meet the demands of each market they serve.
Around the cross-border retail payments space
Responding to various payment requests from consumers is not as simple as it sounds. Customers expect a variety of options when transacting online, but facilitating alternative payment methods for merchants can be a complex process for payment service providers (PSPs). With cross-border e-commerce values ââpoised to reach $ 6.9 trillion by 2025, many organizations are innovating in their payment technology to meet the needs of international customers. Companies with payment platforms ultimately improve their understanding of local payment preferences, payment methods and regional regulations to better suit each market.
Officials are working diligently to regulate the global payments space to ensure a smoother cross-border e-commerce experience for merchants and their customers. In a recent event, the Director of the International Monetary Fund (IMF), Kristalina Georgieva, informed global policymakers that streamlining cross-border regulations could increase the use of cross-border technology. She explained that cross-border payments are not attractive to some consumers as they often lack transparency and cost more than domestic purchases. As cross-border transactions gain momentum in the e-commerce market, finding a solution to these issues is urgent and crucial to sustaining the growth trajectory of cross-border payments.
To learn more about these and other stories, visit the News and Trends report.
Brazilian Bundle Me on How Adopting Regional Payment Preferences Increases Cross-Border Sales
The growth of the cross-border e-commerce space during the pandemic has opened many doors for retailers looking to expand their business geographically. Each region has preferred payment methods, however, an important factor global businesses need to consider to ensure customer satisfaction and loyalty.
Na’Imah Muhammad, owner of Brazilian wig and hair extension retailer Bundle Me, recognized the opportunities that recent cross-border success presented for his business and innovated his payment technology accordingly, ultimately leading to increased sales at abroad.
To learn more about why cross-border e-commerce merchants should consider the payment preferences of the markets they serve, see the report’s featured article.
Focus: Personalized payment options are key to the growth of cross-border e-commerce
Consumers who shopped online during the pandemic have become more comfortable shopping through digital channels and are now more open to doing cross-border transactions than before. Businesses wishing to increase their chances of success in the cross-border e-commerce space should therefore consider implementing a multitude of popular payment options based on the regional preferences of their customers.
To learn more about how alternative payment options are increasing customer satisfaction rates globally, visit Report’s Deep Dive.
About the tracker
The Cross-border retail payments trackerÂ®, produced in collaboration with Lemon, examines the latest developments in cross-border retail payments.