Digital content & subscriptions
Global expansion
Global expansion
Video
December 4, 2024

Breaking barriers: How Merchant of Record solutions simplify global expansion for subscription platforms

Global expansion
Global expansion
Regulatory compliance
Regulatory compliance
Payment technology
Payment technology
Revenue acceleration
Revenue acceleration

Global expansion has become one of the key priorities for eCommerce and subscription-based platforms, from gaming and streaming services to online education and dating apps. With untapped markets offering a wealth of new subscribers and revenue potential, the business growth appeal of scaling internationally is undeniable.

Behind this promise lies a labyrinth of challenges. Payment technology, local regulations, and customer expectations often create roadblocks that can stall even the most well-planned growth strategies. For businesses seeking a smooth path to global success, rethinking payment strategies—starting with solutions like Merchant of Record (MoR)—is no longer optional. MoR solutions allow businesses to enter new markets up to 97.8% faster, removing barriers to growth and enabling scalable global expansion.

The hidden complexities of going global

Expanding into new markets requires more than translating your platform or setting up a local marketing team—it demands an in-depth understanding of each market’s payment ecosystem.

One of the most significant hurdles is compliance. Each country enforces distinct rules around taxes such as VAT, GST, or sales tax, and staying aligned with these regulations is both time-consuming and critical to avoiding penalties. Internal teams often struggle to keep pace with changing rules, delaying market entry and increasing risks. MoR solutions provide a consolidated approach to tax calculation, collection, and remittance, enabling businesses to launch in new markets faster while maintaining compliance.

Customer expectations add another layer of complexity. 69% of customers prefer to use their local language and currency during the payment process, and failing to meet these expectations can drive cart abandonment and erode trust. Friction at transaction stage—whether from unsupported payment methods or unfamiliar currencies—creates barriers to conversion and retention.

Even when these hurdles are addressed, payment authorization rates remain a stubborn challenge. Cross-border payments processed through international acquiring banks are often flagged or rejected. By processing payments locally, businesses can achieve higher approval rates, while optimizing acceptance costs.

For platforms reliant on subscription models, overcoming these barriers is essential for unlocking the full potential of global markets.

The power of payment-first expansion

Successfully navigating these challenges requires more than traditional payment strategies. Subscription platforms must adopt an approach that simplifies operational complexity, prioritizes customer needs, and adapts seamlessly to regional variations.

Merchant of Record (MoR), local acquiring, and alternative payment methods (APMs) provide the foundation for businesses to expand efficiently while delivering a localized and trustworthy customer experience.

Merchant of Record as the engine for accelerated expansion

A Merchant of Record (MoR) streamlines the financial and legal complexities of entering new markets. By handling tax calculation, collection,and remittance, MoR allows businesses to focus on scaling operations without being burdened by regulatory roadblocks.

Instead of establishing local entities or dedicating internal resourcesto tax compliance, businesses leveraging MoR solutions gain immediate access toglobal markets. This approach accelerates market entry while reducing operational overhead.

The benefits extend to the customer experience as well. When customers see payment options and pricing tailored to their region, they are more likely to trust and engage with the platform. In highly competitive markets, creating trust through seamless and localized payments becomes a powerful driver of recurring revenue.

Direct local acquiring makes payments work harder

Local acquiring plays a crucial role in maximizing transaction approval rates and optimizing payment performance. By routing payments through local acquirers, businesses improve the likelihood of approval while minimizing cross-border transaction fees.

This strategy helps businesses avoid revenue loss caused by declined transactions and reduces the hidden costs of cross-border processing. The 12% boost in authorization rates achieved through local acquiring translates directly into accelerated revenue growth and improved customer retention.

Alternative payment methods to meet customers where they are

Payment preferences differ significantly across regions. While credit cards dominate in North America, mobile wallets and bank transfers are preferred in other parts of the world.

However, success isn’t just about offering a wide range of options—it’s about tailoring the payment mix to each market. Displaying too many or irrelevant methods can lead to checkout fatigue and undermine the user experience. Instead, businesses must focus on a streamlined, localized payment journey that reflects regional preferences, helping increase conversions.

Equally important is having local experts on the ground to design and implement the best payment strategy for each market. Their knowledge of consumer behavior and regulatory nuances ensures the approach is both effective and scalable.

Platforms, such as Nuvei, that support over 700 payment methods, while tailoring them to each region, can minimize cart abandonment and secure predictable revenue. For subscription platforms, this flexibility is critical for delivering seamless experiences and sustaining customer loyalty.

From complexity to opportunity

Global expansion isn’t a one-size-fits-all process; it requires a thoughtful strategy tailored to diverse markets andcustomer needs. Subscription platforms that invest in tools like merchant of record, local acquiring, and alternative payment methods can simplify operations, improve customer trust, and unlock long-term growth opportunities.

These solutions solve immediate challenges, while positioning businesses to thrive in an increasingly interconnected world. For platforms ready to expand, the key lies in balancing operational efficiency with customer-first experiences, creating a foundation for sustainable success in every market they enter.

Further insights

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