Researchers predict that global cross-border online sales will double in the next five years1, with European cross-border online sales projected to grow 27% year on year. In Argentina, 40% of digital buyers made a cross-border transaction in 2015, with 60% of digital buyers in Mexico and Canada making cross-border transactions that year. This puts you in a great position to make the most of existing and potential export markets. Having a solid and secure strategy in place for your cross-border payments will help you achieve this.
Making borderless payments
It’s quicker and easier than ever to expand your business into new markets. Likewise, it has never been easier for customers to find you, no matter where they are in the world. But, do they conduct their payments in the same way as you? Are their banks aligned with yours? Any glitches or complications in the payment process are likely to stop a cross-border financial transaction in its tracks.
Be flexible in how you conduct your financial transactions with your export market. Don’t limit yourself. Market Finder can show you how to adapt to your customers’ preferred payment method. Offer them familiar payment methods. and you’ll reap the rewards that come from listening to local markets.
Protect yourself, too. Research the different fees and fraud risks associated with the country where you are selling your products. To ensure that all your cross-border payments are a success, plan to have a secure payments strategy embedded in every step of your expansion plan.
Research carried out in 20162 found that one in ten UK online retailers were totally dissatisfied with their international payments, and 69% felt that localization was a very important part of any retailer’s success.
To gain loyal customers, be sensitive to their regional cultural differences. Supporting the most popular payment methods for each of your new markets will help build trust and increase sales.
A hefty 25% of all online sales fizzle out at the online checkout. Confusing design, distracting ads or unfamiliar payment methods all play a part in this. This is doubly the case in foreign markets.
To make sure that this doesn’t happen to you, consider:
- designing your site in your export market’s language
- including local payment methods
- designing the checkout page so that it looks familiar.
- researching competitor sites to see what formats they use
- keeping the checkout page simple
Put in a bit of homework to find out the many payment options available globally. Market Finder has a detailed description of the most popular methods used. Payment options can range from ewallets to online bank transfers, credit cards or mobile payments.
A payment vendor is a third party who will carry out the transfer of funds between you and your customer. This is a safe, reliable way of conducting financial transactions, as your third party vendor will know all the local regulations. This is handy if you are based in Paris and your buyer is in Tokyo.
The internet has opened up trading opportunities for small and medium businesses on a global scale. However, taking your business into new export markets can be as complex as it is exciting. Market Finder helps make sure that your cross-border financial transactions are not one of those complexities. It shows you how to embed a secure payment strategy from the moment you say “hello” to a new export market.
Learn more: For more free hands-on support from Export Development Canada, check out this list of resources.