The rise of cross-border eCommerce has transformed the way we shop and do business. With the growing popularity of using smartphones and digital devices to transact, consumers can now easily purchase products from anywhere at any time. This has led to remarkable growth in eCommerce sales, surpassing traditional retail in many countries: in 2023, the value of international eCommerce market is expected to reach $2.1 trillion, up from $1.9 trillion in 2022.
One of the key factors contributing to successful growth in new markets is an efficient payment system. As online transactions continue to account for a significant portion of global sales, we found that 47% of eCommerce businesses prioritize entering and navigating new markets with the help of Payment Orchestration. In this article, we will discuss how Payment Orchestration can facilitate and accelerate their global expansion objectives, increasing efficiency, profitability and reducing processing costs.
Maximizing revenue potential
To achieve true success in new markets, businesses selling online need to optimize their revenue streams. Increasing approval rates and enhancing customer experience become critical factors in driving revenue growth. By working with local acquirers in their target markets, companies not only minimize processing costs, but also significantly increase the chances of the transaction going through at first attempt.
Establishing local acquiring connections in every high-growth market can be a complicated and expensive task since it means managing multiple payment tools in various regions. 18% of the companies we surveyed are integrated with up to 20 payment providers, while 20% of our respondents want to enhance conversion rates as they consider Payment Orchestration.
Payment Orchestration helps businesses take a strategic approach to payment complexity by centralizing all their payment partners and capabilities into one platform and across all their channels. This enables companies to quickly adapt their checkout process to accommodate each region's most relevant payment methods and reduce acceptance costs. With Payment Orchestration businesses can set rules for smart routing and automatically direct transactions to the most relevant and cost-efficient acquirers, leading to higher conversion rates and maximized revenue.
Embracing alternative payment methods (APMs)
Online payments are witnessing a remarkable shift, with consumers in some regions gravitating towards alternative payment methods at unprecedented speed. In the APAC region alone, an astonishing 69% of online payments were made using a digital wallet in 2022.When it comes to customer experience, 85% of UK-based shoppers consider it very important to have their preferred payment method available, while 49% of both US and UK consumers will abandon their purchases if they can’t use their local payment option. However, our study shows that managing multiple payment partners and capabilities can present challenges for at least 74% businesses, stalling their success in particular markets.
To establish trust and appeal to local customers in new regions, online businesses should consider a Payment Orchestration platform that allows them to easily access and incorporate local payment methods into their checkout process. By customizing the payment mix on a single payment page, businesses can cater to specific local demands. This approach not only fosters credibility and loyalty but also minimizes cart abandonment, ensuring increased success rates and higher return on investment.
Conclusion
Leveraging Payment Orchestration, businesses can accelerate their global expansion, by adapting the payment flow to accommodate region-specific payment methods and efficiently routing transactions to specialized payment partners. These features provide businesses with the flexibility to scale rapidly and accelerate customer retention in new markets.
Download our Payment Orchestration whitepaper to discover how a single platform can transform your P&L through seamless global expansion, cost-efficient payments, and frictionless experience for your customers.
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