International payments allow global customers to easily send money when paying for your company’s products or services. Wherever your customers are in the world, international payments enable them to enjoy your products or services with minimal inconvenience.
Many businesses only accept local payments, regardless of the customer's location. However, cross-shopping or international markets are growing. Facilitating the payment process by accepting international payments can help you grow your business on a global scale.
To cater to your global customers, you can use credit cards, wire transfers, or e-payments as methods of receiving payment internationally. Here are three advantages to accepting international payments for your business’s goods or services:
- Decrease Cart Abandonment Rate
Online shoppers are willing to pay a reasonable amount for products they need. For instance, if shoppers want an authentic brand of shoes, they are likely to buy that brand, regardless of the price or location. However, if your shop only accepts local payments upon checkout, the customer may abandon your site and look for the product elsewhere.. If this scenario occurs repeatedly, you will lose business and potential customers.
On the other hand, if your business accepts cross-border transfers, cart abandonment will decrease. There are a few ways to keep your customers from abandoning their carts:
- Use Exit-intent Popup Software - install it on your cart or checkout pages so it can detect when customers are leaving a page. When detected, it will pop up and offer a deal such as coupons or discounts, to encourage them to stay.
- Keep Carts Visible - a cart icon that is visible on a user’s screen allows them to save items they intend to purchase later on. Also, it reminds them that they have not completed their transaction yet.
- Display Security Badges - security badges reassure shoppers that sharing their credit card information or other important banking data is safe. It gives them confidence and trust to make purchases from your shop.
- Create Market Differentiation
Market differentiation is a business strategy that helps distinguish your business from other similar businesses in the same industry. It gives your business a competitive advantage in instances where large companies dominate the market. This strategy gives a message to consumers that your business is different from other similar companies. If you are planning to do business in the US or other countries, this strategy will help you grow your business and make a global expansion.
One way to make your business stand out from similar businesses is to accept international payments. When you offer international payments, it gives you an upper hand. For example, with so many companies selling their own products, getting your brand known can be difficult. When you offer your brand to multiple nationalities, your local products may be recognized all over the world, setting you apart from local businesses who only cater to local customers. But to do that, you need to accept international payments.
Here are more advantages of market differentiation for your business:
- Non-price Competition - frees your business to focus on the quality of your products or services instead of focusing on competitive pricing.
- Brand Loyalty - as mentioned, your brand is recognized when your products are offered internationally. You build customer loyalty when your business delivers high-quality goods or services in exchange for international payments.
- No Perceived Substitute - even if you have competitors, when you establish market differentiation, customers will see your products as unique from others.
- Establish Global Expansion
Once you have established your brand in your home market, the next step to growth is to establish it globally. However, it is not easy to expand your business internationally, since you need to prove that your products or services will sell on the global market. With the help of cross-border payments, you will gain a lot of global customers. Creating a tracker of which nationalities are engaging in your industry will give you an idea of which countries are most feasible for your business expansion.
Making it in the global market requires knowledge about payment preferences and shopping behaviors. Here are some payment preferences for various countries that you can incorporate into your business plan for receiving payments:
- Brazil - payment methods in Brazil range from online payments to installments, and Boleto Nancario is most often used by those who do not have bank accounts. For online payments, Brazillians use credit cards, especially when making cross-border payments.
- China - shoppers mostly use Alipay, China UnionPay, or WeChat Pay to purchase products from abroad.
- Russia - e-wallets like Qiwi are popular for Russian shoppers, and some prefer the cash-on-delivery method.
To grow your business, you need to reach beyond your local arena and offer your products or services to the world. By limiting your business to local payments, you also limit your customer base. With limited customers, your business will have fewer sales and less opportunity for expansion. Accepting international payments will help your business grow rapidly by giving global customers access to your products.