Global expansion is a top priority for eCommerce businesses. By expanding their customer base and reaching new demographics, they can increase their profits, creating a win-win situation. However, achieving international growth requires strategic inventory management, streamlined logistics, and a global payment system. To establish successful cash flows worldwide, it’s crucial to ensure your payments are secure and accessible from any corner of the globe. But how can you achieve this? Keep reading to find out!
In this blog, we will explore what a global payment method is and how it can help merchants send or receive funds from customers, regardless of their location. We will also discuss eCommerce localization, a strategy that allows you to adapt your websites and apps to different countries based on the user’s location. In essence, this blog will help streamline payments for your business, making it easier for you to expand and go global.
Understanding Global Payment Methods
A global payment method allows merchants to accept payments from customers worldwide, regardless of their location. In such transactions, the issuing brand (in the case of debit/credit cards) and the merchant’s payment processor are situated in different countries. For example, if your business is located in Russia and a customer with a credit or debit card issued by a French brand makes a purchase, it constitutes a global payment. Debit/credit cards are just one example of international payment methods, with others including digital wallets, credit and debit cards, contactless payments, buy-now-pay-later options, and more.
Global payments benefit both customers and merchants. Customers gain the freedom to make purchases from anywhere, enhancing accessibility. For merchants, it means they can expand their businesses without significant logistical barriers.
What Is eCommerce Localization?
eCommerce localization is the process by which an online business customizes its content to cater to different locations or markets. Consider Amazon as an example. The Amazon website in the USA is in English and offers global and local payment methods available in the United States. On the other hand, the Amazon website in Mexico has a different URL, uses the Spanish language, and provides payment methods specific to Mexico.
The benefits of eCommerce localization are numerous, including:
Competitive Advantage: Offering a personalized experience to customers can give your business a competitive edge. Research shows that 47% of consumers consider a local presence a significant factor in their choice of online stores.
Improved Customer Satisfaction: Personalizing the website, language, and payment methods can enhance the customer experience, leading to higher satisfaction rates. Personalized websites reportedly experience 20% higher customer satisfaction.
Global Market Reach: eCommerce localization allows you to reach a broader customer base, tapping into global markets and driving growth and increased revenue.
Better Conversions: A localized interface is easier for customers to navigate, leading to increased conversions and higher sales.
Benefits of Offering Global Payment Methods
Businesses stand to gain numerous advantages by offering global payment methods, including:
Enhanced Market Reach: One of the most significant benefits of offering global payment methods is expanding your market reach. With support for various payment methods, you can sell your products or services to customers anywhere in the world, regardless of your business’s location. This wider reach can significantly boost your bottom line.
Boosted Checkout Conversion Rates: Lack of suitable payment options is a significant reason for cart abandonment, leading to lower checkout conversion rates. By integrating multiple global payment methods, you provide customers with a range of choices, reducing cart abandonment rates and increasing conversion rates.
Cost Reduction: Traditional payment methods like credit or debit cards can be expensive for businesses due to processing fees. Alternative payment methods such as digital wallets, buy-now-pay-later, and bank transfers typically have lower fees, saving businesses money while offering a better customer experience.
Types of Global Payment Methods
Here are some common and trending global payment methods:
Credit and Debit Cards: These cards, issued by global brands like Visa and MasterCard, are widely accepted for both in-store and online transactions.
Digital Wallets: Popular digital wallets like Apple Pay, Google Pay, and PayPal allow customers to load funds and make payments using their bank accounts or credit cards.
Bank Transfers: Customers can transfer funds directly from their bank accounts to a merchant’s account, both domestically and internationally.
Buy-Now-Pay-Later Installments: This method allows customers to purchase expensive items and pay for them in installments, increasing accessibility and sales for merchants.
Offline Payment Methods: These require customers to be physically present, such as making payments in brick-and-mortar stores using cards or digital wallets.
Cryptocurrency: While less common, the use of cryptocurrencies like Bitcoin, Ether, and Ripple for online and offline payments is steadily increasing.
Top Payment Method Providers Globally
Here are some popular brands that offer global payment methods:
Debit and Credit Card Brands: Visa, MasterCard, and Maestro are prominent brands offering international debit and credit cards.
Digital Wallets: Apple Pay, Google Pay, and PayPal are widely used digital payment platforms available in multiple countries.
How Web Technology Expert Supports Global Payment Method Transactions
Web Technology Expert is a global payments integration platform that can help you integrate over 30 payment gateways supporting more than 300 international and local payment methods across 200 countries/regions. This means you don’t have to integrate each payment method individually. By partnering with Web Technology Expert, you can access an end-to-end payment solution, simplifying your ability to send or receive payments globally.
By accepting global payment method transactions, your eCommerce business can expand its customer base, gain a competitive advantage, and significantly increase revenue. Supporting both local and global payment methods enhances the convenience of the customer buying experience, which is essential for your business’s growth. Don’t hesitate to explore how Web Technology Expert can help you enable global payment method transactions and boost your revenue.