Payment processing solutions in North America can seem straightforward: take credit and debit cards, along with some of the best-known mobile payment apps, and move forward from there. In online commerce, though, this leaves a lot of money on the table. The most popular payment methods differ across the globe, with different countries and regions creating different products their citizens use every day. Processing cross-border payments in eCommerce gives you access to far greater revenue opportunities.
Global ECommerce Is Still Exploding
The most obvious reason to take cross-border payments in your eCommerce business comes from the scope of opportunity. Online businesses don't need to limit themselves to selling in their neighborhood, state, or even country. According to Digital Commerce 360, global eCommerce revenue grew by 18% in 2018, to a total of $2.86 trillion--15.2% of all retail sales.
With a pie that large, you would be foolish not to try to take a piece. If you have an eCommerce business, you have the ability to market to people everywhere who have an internet connection. If you have something that they will want or need, there is no reason not to open up your business to everyone.
Payment Methods Vary Across the World
Going global requires accommodating the ways people pay. In the United States and Canada, debit and credit cards continue to rule the day. But in many countries, those options don't predominate as they do in North America.
Take Latin America for example. Access to credit and bank cards is much lower there, so you risk losing out on an entire market if you don’t accept alternative payment method (APM) like the Boleto Bancário. In China, WeChat Pay and Alipay are two of the most popular mobile payment methods.
If you are going to open your eCommerce business to opportunities across borders, you need to be able to process the methods your customers will use to pay. Beyond the method of payment itself, cross-border eCommerce means needing to process payments in multiple currencies. Credit card payments typically include the conversions, but your payment processing platform needs to be able to seamlessly manage conversions and even route transactions to the most cost-efficient acquirer.
Is the Complication Worth It?
All businesses are not created equal. If you run a small business with locally useful goods and services, it may not make sense to try to capitalize on global markets. You have to not only process the payments customers use, but also navigate international shipping, customs, tariffs, and regulatory structures. If your appeal remains in one region, you should plan accordingly.
For large enterprises and multi-national organizations, or for those whose products or services have transcontinental appeal, the opportunity is too great to ignore. The right merchant services provider can help take much of the hassle out of cross-border payments. Opportunities are out there, but you can't expand your sales without reaching out toward them. Working with a payment technology partner like Nuvei can provide the right strategic and commercial guidance to take your business further, faster.