E-tailers are increasingly turning towards international markets and online payment can be a major barrier to successful internationalisation. It is always possible to choose to sell internationally via marketplaces to avoid this obstacle, but apart from that, here are 3 tips for avoiding the pitfalls of international online payment.
Developing your ecommerce business internationally can lead to several administrative complexities. When you want to receive payments outside of your country via your online store, you must comply with local regulations regarding online payment, secure online transactions and adjust payment methods in relation to the preferences of local customers.
A payment service provider (PSP) can be used to overcome these regulatory and technical constraints. A PSP offers shops online services for accepting electronic payments by a variety of payment methods. It manages the different currencies and contracts for distance selling internationally.
The preferred payment method can vary significantly from country to country. For example, in France, Credit Card and Paypal are the most popular payment methods, whereas German shoppers often prefer settling their online purchases by bank transfer or payment invoice. However, when selling in the Netherlands, it is critical to provide the iDEAL payment method.
Online payment specialists recommend adapting the payment options for each market, and offering 3-6 payment methods, taking into account local preferences.
At this year’s Lengow Ecommerce Day, Renan Aulanier from Be2bill made an interesting link between the security of a website’s payment system and it’s the impact on conversion rate. He mentioned some important prerequisites, such as having a multilingual payment page, and having the choice of paying in multiple currencies and via multiple methods.
Furthermore, the subject expert recommended finding the balance between transaction amount and risk of fraud, and their effect on e-commerce conversion. Below a certain purchase amount, two-factor authentication devices such as 3D Secure can result in lost sales, particularly for the smaller shopping carts. It is sometimes preferable to accept a slight security risk to keep the payment process simply and fluid and reduce the drop-out rate at this stage.