Local payment methods, including prepaid cards, mobile
payments, e-wallets, bank transfers, and ‘buy now, pay later’ instant financing,
are a global payments phenomenon. In the UK they constitute around 30% of
e-commerce payment. This may seem like a lot, but this figure is dwarfed by popularity in the
Chinese marketplace, where nearly 70% of online purchases are made using
alternative local payment methods rather than credit or debit cards.
For businesses wanting to go global, offering local payment
methods is an absolute must. In 2020, almost 80% of all cross-border e-commerce
will be paid for using local payment methods, according to PPRO’s
Here are 7 of the key advantages to your business that local
payment methods offer:
Information presented in the customer’s own
language is essential for full clarity at the checkout. Local payment methods
take all the essential information about the purchase and translate it into the
customer’s language, so confusion is avoided.
Cost visibility is essential when the
customer gets to the checkout. Local payment methods convert the cost into the
customer’s own currency, so they see the cost in a context they understand and
there is little scope for unexpected surprises.
When customers use alternative payment methods like Apple Pay,
chargeback liability shifts from the merchant to the payment method provider.
So if, as a merchant, your customer asks for a chargeback, you don’t have to
issue this for the customer, which is what would happen with a regular card
Alternative payment methods are secure for online payments because users don’t share any private information. All they share with the other parties is their address (for example their PayPal email address), which reduces the amount of sensitive information being exchanged in the payment process.
Local payment methods store a customer’s
payment credentials securely so that all that’s needed to enter at the checkout
is account authentication, such as an email/password combination, or biometric
data such as a finger print. This is much quicker than having to re-enter
lengthy card details for every purchase.
For international customers, being on a
foreign business’ website can throw up some unfamiliarities that could be the
difference between converting at the checkout or abandoning the cart. Local
payment methods provide the assurance and familiarity that customers often need
to have trust in the merchant.
choice at the checkout
Local payment methods offer more payment
choice for the customer, besides traditional credit or debit cards. In many
countries they are the preferred payment method, and so by giving the customer
the choice, you are increasing the likelihood of a completed sale.
TRU//ST Payments partner with PPRO to offer a variety of local payment methods popular in different markets all around the world. Our team of experienced payments experts will work with you to understand your business targets, and advise you on which local payment methods are needed to maximise your sales. To find out how TRU//ST can increase the number of payment options you offer and take your business to the next level, please get in touch today!