When you think about expanding your business, it sounds big. You may look immediately to focus on the biggest payment options: the Visa and MasterCard payment systems. This is important, but it only serves as part of the puzzle. To reach more effectively across borders, you should look at ways to take local payment options as well.
Growing Across Borders
The eCommerce market continues to grow unabated. According to Digital Commerce 360, eCommerce sales grew for U.S. merchants by 14.9% in 2019. This growth comes in part from a greater ability than ever to grow not only within your local region, but across the globe. With internet access freely available, you need only build a website that people can find and sell something they want. Once you can do this, your reach is only limited by your imagination and appeal.
To be able to sell across borders, though, you have to do the groundwork. This means understanding and adhering to regulations and tax laws that apply to other countries. Beyond this, you have to be able to process their payments. For the large credit card providers, this may be easy. If all you take are credit cards, though, you limit your potential by at least half. Accepting alternative payment methods drastically broadens your reach.
What Are Alternative Payments?
Different regions and countries tend to favor different forms of payment. This can include transfers from local banks, digital wallets that allow customers to pay through smartphones or in online marketplaces, and prepaid cards or cash vouchers. Each of these categories of payment types holds variations across the world. Depending on the region you target for sales, you may need to ensure particular compatibility for payment methods within any or even all of the categories.
For many of your potential customers, they come with a greater sense of security and peace of mind. Rather than attempt to procure and use a major credit card, they will simply limit their online shopping to businesses able and willing to take their preferred payment types. Choosing not to accept alternative payment methods closes you off from those people.
Opportunities and Choices
Of course, there may be reasons for you to elect not to pursue customers in some regions. You know your products and services, and should have a sense of what customer bases may be interested. If you will never sell product in Asian markets, for example, you may choose to focus on payment compatibility in Europe, North America, or other regions.
Still, taking a broader range of payment options usually means more opportunity for you to grow. Working with more alternative payments now not only gives you greater access in the moment, but less work if you do become ready to expand further over time. To get the most out of your cross-border expansion, work with a payment processor able to maximize your alternative payment accessibility. This gives you fewer limitations and more room to grow.