Tips for delivering great payment experiences, anywhere in the world

DACH Regional Manager, Fredrik Neumann, offers advice for merchants wanting to maximize success when expanding into new countries.

Enabling cross-border commerce makes sense for retailers who want to increase sales and grow their customer base. However, as retailers who have a global presence will know, whilst the gains can be considerable, if the right global payment strategy isn’t in place, the pains may be too. We can help retailers ensure they’re set up for international success from the start.

Treat your shopper as a local

In our recent Payments Performance for Retail survey, 39% of our global respondents told us they had made a cross-border purchase in the last year. When looking at what deters the other 61%, a considerable opportunity comes to light, since almost all their concerns can be mitigated.

Top reasons for not shopping internationally:

Delivery takes a long time – 56%

Risk of fraud – 52%

Harder to return – 47%

High transaction fees – 34%

Hidden fees – 25%

These perceptions can be changed with the right communication, a local payment approach and effective fulfilment solutions. Even when shopping cross-border, customers expect home comforts, so making sure their experience is friction-free and convenient is paramount.

Of those who have shopped internationally, 99% told us they think it’s important for them to be able to pay with their preferred payment method, and 94% expect to pay in their local currency.

Ensuring product descriptions and currencies are kept local can reduce cart abandonment. Nobody likes hidden fees, so make sure additional costs or taxes are clear up front through transparent and reassuring communication. In fact, communicating every step from order to delivery can reduce the risk of chargebacks and keep customer service queries down.

It may make sense to explore warehousing solutions and shipping companies to get items to (and sometimes from) customers quickly. When returns are easy, free and fast, shoppers are more likely to take a leap of faith and buy internationally, strengthening trust and confidence.

Take advantage of global acquiring reach

Navigating the legal, consumer and regulatory requirements of different countries can be complicated, so it helps to have a payment partner who can act as an expert guide. Because of our relationship with local card schemes and global acquiring reach, we help retailers find the right mix of payment types to drive international shoppers through the checkout without fuss.

Processing payments locally can mean costs are lower and authorization rates are higher, which is better for shoppers and retailers alike. When payments are taken and settled in the local currency, things are simpler, clearer and carry less risk posed by fluctuating exchange rates and confused shoppers who may otherwise be perplexed by unexpected amounts on their bank statements.

Know your market

Every country has nuances, values and trends that factor into how people shop, with what frequency and how they want to pay. Getting to know your global audience through valuable insights can ensure a targeted global approach that has greater impact. Do you need a Buy Now Pay Later solution at checkout? Do you need to enable pay-by-link or bank transfer?

Working with a payment provider who has an end-to-end solution across acquiring, gateway and omnichannel can ensure every data point gathered converges into a commercially astute view of customers as the individuals they are. Harnessing data effectively can help you identify where to expand next, what products and messages are likely to work for whom and keep your business safe from fraud.

Finally, make sure you have a copy of our Global Payments Report at hand to explore how people pay across the globe.

Your checklist for a great cross-border experience:

• Use local acquiring to get the best conversion rate and lowest costs per transaction
• No hidden fees – show taxes up-front
• Allow customers to shop and pay in their own currency
• Have clear, reassuring communication at every point of the shopper journey
• Get items to customers fast, possibly using local warehousing solutions
• Offer free and fast returns that replicate a local shopping experience