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 Payment Almanac.
Here are 7 of the key advantages to your business that local payment methods offer:
- Local language
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.
- Local currency
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.
- Liability shift
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 transaction.
- Enhanced security
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.
- Speed at the checkout
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.
- Familiarity
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.
- Customer 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!
