The Top 4 Ways to Increase Cross-Border Payments
With a projected 216 million online shoppers in the United States by the end of 2024, it is no wonder many companies focus their efforts right here at home. Yet, while 216 million is no small number to ignore, expanding e-commerce to new countries will broaden businesses to new audiences. As many as 2.77 billion will shop globally by the end of the year, opening the door to increased sales through cross-border payments exponentially.
Uncover the top four ways to increase international purchases and continue building revenue.
What are Cross Border Payments?
Cross-border payments are purchases that cross international borders. This means the shop is not located in the same country as the customer making the purchase, facilitating the need for a currency exchange to complete the transaction.
1. Roll Out at the Right Pace
First and foremost, when jumping from asking the initial question, what are cross-border payments to starting to expand into international markets, the key to success is to roll out at the correct pace. With logistics such as shipping and international compliance to plan and adhere to, going global instantaneously is not an ideal strategy.
Instead, start with market research such as your social media audience’s location and web analytics dashboard to identify potential countries already showing interest in the product. From there, focus on expanding into one country at a time to ensure a smooth and streamlined expansion.
2. Select Reliable Cross-Border Payment Solutions
While many sales platforms like WooCommerce allow business owners to offer products across the globe, one critical step in the customer journey that can bolster international activity is creating a seamless checkout process. In fact, the more simple the cross-border payment solution, the less likely brands will experience cart abandonment.
Choosing reliable payment merchants such as Stripe, PayPal, or Braintree is critical for an ideal checkout experience. These merchants not only emphasize customer satisfaction, they also offer a range of cross-border payment options. Stripe, for example, offers payment processing in over 135 currencies, allowing international customers an easy checkout.
3. Determine Additional Fees and Be Transparent
Most merchants will have a small transfer/conversion fee. Customers don’t like surprises when it comes to costs like currency conversion, service fees, and taxes. Show all these additional charges clearly, so customers know exactly what they’re paying for. It’s also important to have real-time calculations of these fees so customers see the costs as they go through the transaction. Being clear and transparent with fees not only avoids customer frustration but also builds trust, which is crucial for keeping customers in the long run.
4. Offer Cross Border Payment Incentives
Offering cross-border payment incentives is a key strategy for businesses looking to expand their international user base. This approach means reducing the costs and complexities associated with international transactions. Effective incentives might include lowering transaction fees, offering loyalty points, or providing cashback rewards for frequent users. These incentives should be customized to cater to various markets and customer preferences, to acknowledge the diverse needs of users across different regions. Additionally, forming partnerships with local and international businesses can create unique offers.
Starting on the Right Foot
Effective cross border payments are essential for businesses looking to succeed globally. Payment Plugins simplify international transactions and make them more user-friendly and efficient. These plugins offer clarity on fees and incentives tailored to different markets, and they adapt well to changing global economic conditions. By integrating the right payment plugin, businesses can not only ease the transaction process for their customers but also tap into new global markets and enhance growth and customer satisfaction.
