The significance of integrating local payment methods for expanding your business.
Check-out process refer to a customer's journey starting with the 'Buy Now' button. According to a study, 87 percent of eCommerce shoppers abandon their carts at checkout. This data suggests how essential a good check out experience is essential to any store. Moreover, nearly 4.2 billion eCommerce shoppers will be active by 2023. If online businesses fail to look at their checkout process, this can result in financial losses as well as a drop in customer retention rate.
Customers have different preferences over processes including preferred payment method. To position your store as a global brand servicing customers across different borders, it is advisable to facilitate payment options within their reach. The best way to do this is by implementing local payment methods.
What are Local Payment Methods?
Also called LPMs, local payment methods are alternative methods of making and accepting payments that are supported in specific regions. They could be open invoicing, mobile payments, bank transfers, digital wallets,s or local debit networks.
The best way to build an inclusive checkout experience is by implementing a local payment gateway that goes beyond traditional payment solutions and credit/debit cards. An effective gateway is trustworthy, easy to use, and secure. The right payment gateway ensures that your customers access their local payment methods. This further ensures that your customer retention rate in the checkout process is increased.
In this article, we look at how to build an inclusive checkout process by integrating local payment methods.
Benefits of Inclusive Local Payment Methods to a Business
Choosing a diverse local payment methods gateway reflects a brand’s motivation to serve all its customers. This drives more conversion, boosting trust, enhancing customer experience, and strengthens customer loyalty.
Trustworthy - Customers are impressed by local payment methods because they make them feel at home with a store. Trust is granted, and this builds customer loyalty. Besides, this is a payment method they understand and will go a long way in simplifying the checkout process.
Driving conversion - A customer will abandon their cart if they fail to see their preferred local payment method. This could be even more annoying if the customer spent lots of their time navigating your store to find a product only to waste their frantic efforts through a foreign payment gateway. Offering local payment methods boosts conversions by eliminating such frustrations.
Boosting customer experience - Bring convenience to your customers through an easy checkout process. Customers want simplicity, or else you risk having lots of abandoned carts.
Which Businesses Need Local Payment Methods
The shift to digital payment methods is being observed in all kinds of businesses to increase their user-base and boost sales in local as well as international markets. Let's look at some of the segments that are most likely to benefit from integrating local payment options within their infrastructure.
Freelance Business - Freelancing has gathered huge momentum after covid-19. The trend of skilled workers is leading to more businesses opting for freelancers to work on a contractual basis. To expand their operations and build their individual brands, it is vital for freelancers to offer local payment methods to their clients.
Online Marketplaces - Online marketplaces are gaining popularity with an increasing number of people buying goods and services online. Furthermore, these marketplaces encompass global customers from all across the world. To grow their user-base and offer an optimized experience, it is vital for marketplaces to offer local payment methods to their consumers.
B2B - As businesses begin transacting with each other on a global network, there needs to be an innovative framework for payment solutions that caters to their needs. With local payment methods, the transaction processes between two enterprises in different geographical locations becomes considerably simpler.
B2C - The B2C marketplaces are no longer restricted to conducting their operations in their localized boundaries. Additionally, a robust supply chain network ensures that enterprises can directly reach their cross-border consumers in an effective manner. Hence it is important for B2C solutions to implement local payment methods within their infrastructure to connect to a wider audience.
How Can I Accept Local Payment Methods for my Business?
XanPay offers an innovative solution for facilitating local payment methods in multiple countries in a much faster, cheaper, and easier manner. By integrating XanPay into your infrastructure, you can start offering local payments to more than 15 countries. Moreover, the payment gateway solution enables to receive payments in your preferable payment option. In contrast to other leading payment service providers, XanPay charges a very low transaction fee and incorporates a faster process for merchants to receive their funds.
Paypal and Credit cards might be the world’s most popular payment methods, however the traditional financial payment gateway solutions have several drawbacks. In fact, Paypal restricts users in most countries and finds it a nuisance. Bring a convenient customer experience to your shoppers by adding local payment methods that are reflective of your customer’s respective geographies. If you sell products in multiple countries, it is advisable to offer the local currency payment facility to the customers to reduce cart abandonment and grow your sales and revenue.