Accept Local Payments to Enhance Trust and Loyalty Among the Customers in your Business Vertical
Online shopping and payments are at an all-time high in 2020, up 129 percent from the same time last year, but how safe is online payments?
When online payments were first introduced, there was widespread disbelief about how safe it was to give your credit card information over the internet, and while online payment security has improved significantly, some consumers (typically older generations) and businesses remain hesitant to take the plunge.
With online shopping is described as a "sticky habit" (42 percent of consumers intend to shop online more from now on). There's no better time than now to educate yourself on the security of online payments. The ability to accept them is becoming a requirement rather than an option for businesses seeking success.
What are Local Payment Methods?
Local payment methods, also known as alternative payment methods (APMs), are regional payment types that are not credit cards. Digital wallets, bank transfers, cash vouchers, local debit networks, open invoices, and other methods used to pay for goods and services in-store and online are examples.
Merchants have a huge opportunity to expand their markets beyond their domestic borders:
Between 2020 and 2024, the global eCommerce market has grown by $100.63 billion.
When compared to the same period last year, cross-border sales increased by 21% between January 1 and June 14, this year2.
Cross-border eCommerce will take into account 22% of physical eCommerce shipments by 2022.
Cross-Border Customer Engagement Requires:
Knowing what they want from a product
Channelization of communication
Providing payment methods that customers trust and use
To effectively reach an international audience, you'll need a local payment gateway that offers payment options other than PayPal to your customers. You need next-generation payment solutions that support all of the payment methods that consumers expect, including local cards and local payment methods like bank transfers, e-wallets, and cash.
Payment options that do not require a bank account are in higher demand in countries with lower levels of financial inclusion.
A fundamental requirement for an effective payment solution is support for local payment methods. And the ability to dynamically present those methods that customers recognize and trust.
Three reasons to Accept Local Payments-
1. Online shopping accounts for 63% of all purchases.
Whether the final sale is made in-store or online, nearly two-thirds of consumers go online first to research their options and average price points and compare the market.
That means that if you don't have a strong online presence and multiple paths to purchase, you'll lose out to a competitor who does - at least some of the time.
2. Mobile shopping accounts for nearly half of all purchases.
Yes, nearly half of all consumers use their smartphones to make purchases instead of going to the store, and no small business can afford to ignore nearly half of their potential audience's preferences.
3. You could lose up to 48% of your potential sales.
Nearly half of consumers admit they intend to avoid congested shopping areas for the foreseeable future. And 17.2 million shoppers are expected to permanently change their purchasing habits. You could potentially cut your customer base in half if you don't allow them to buy from you online.
Are you ready to board the online train? Now, let's take a look at your options for accepting payments online.
Accepting Local Payments Drive International Success
Physical borders no longer limit businesses. Understanding customers' payment preferences and providing local payment options results in an optimal checkout experience that boosts sales.
This guide examines how culture, behavior, and available technology influence how customers pay in their respective markets. It explains why offering local payment options is important and demonstrates how businesses can easily accept and make payments that correspond to the preferences of their customers.
What Are the Advantages of Using Accept Local Payment Methods for my business?
Offering local payment options that correspond to customer expectations results in a positive user experience, increased conversions, and the development of brand trust and loyalty.
Improved customer experience -
A seamless checkout experience is critical for a business expanding into new markets and developing a cross-border customer base. Local payment options that customers recognize and find convenient need to reach out to the largest possible portion of the market while minimizing cart abandonment.
Increased conversions -
If customers do not see their preferred payment options, merchants risk losing them forever. The customer may have spent time searching for the product, but the actual conversion was let down by the checkout process's limitations. Conversion rates can be increased by accepting local payment methods.
Trust and loyalty -
Trust and loyalty flourish by offering customers their preferred payment methods, language, and currency. Customers get the impression that they are buying from a local merchant with a physical presence in the market when they use local payment methods. This can increase trust in a transaction and aid in the development of brand loyalty over time.
What are the various Accepting Payment methods?
Merchants must understand the various options available to them for collecting payments from cross-border customers. As well as the local preferences in their target markets. Aligning to recognized and trusted local payment methods will increase sales, reduce cart abandonment, and develop a loyal global customer base. The following is a list of the most popular local payment methods.
Credit Cards -
Depending on the country, customers may be restricted to only making domestic purchases with their credit cards. Merchants must be able to process "domestic only" cards through a local entity to handle transactions from customers in other countries.
Digital Wallets -
Digital wallets, also known as e-wallets, provide both security and convenience. And it may account for half of the global eCommerce sales by 2023. Users' payment information and passwords are securely stored in an e-wallet, which allows them to make and receive electronic payments. The digital wallet software is downloaded as a smartphone app or in other formats for a physical device. Mobile wallets such as GrabPay and AliPay do not require a bank account to be linked to them. And it can be topped up with cash deposits at convenience stores and other participating locations.
Installments and Pay Later -
"Buy Now, Pay Later" options allow customers to pay for their purchases over a longer time and are becoming increasingly popular. In the region, payment in installments is a common service expectation, particularly for more expensive items. For these payment options, the merchant pays the provider a percentage of the transaction amount plus a fixed fee.
Cash on Delivery -
Cash on Delivery (COD) is a transaction in which the recipient pays at the time of delivery. CODs account for 5% of global e-commerce and are popular in countries with limited financial infrastructure and low bank account and credit card penetration.
Instantcharge is keeping an eye on merchants who want to Accept Local Payments. Give your business more wings. And you can easily accept online payments through credit card processing. Allow us to investigate your company's needs and locate the best prices in your industry. We do not only approach local credit card processors, but also global processors who can help you reduce transaction fees and monthly account charges.