Using local payment methods can be a great way to boost your business by eliminating the possibility of chargebacks. These are especially beneficial for digital goods or high ticket items, since they can often have high refund rates. Moreover, adding local payment options allows you to target new markets. Many countries do not have access to goods in their own country, so you can offer them goods at higher price points and lower quality. Hence, if you’re thinking about expanding your business, you should add local payment options to your website.
Reduces cart abandonment
If you’re not yet familiar with email retargeting, it’s an effective way to combat cart abandonment and make a return visit more likely. This type of marketing leverages the cookies embedded in the email messages, which display ads to your customers as they browse the web. Email retargeting is the perfect way to win back lost customers. Extra cost is one of the top reasons for cart abandonment, and the most straightforward solution is to eliminate the extra costs. However, this method requires upfront disclosure and communication.
Providing local payment options and currencies for global customers is crucial. Customers in different countries tend to have different currency expectations. Offering the ability to pay in their native currency increases customer satisfaction and reduces cart abandonment. For merchants, offering local currency processing options is a must-have to avoid losing potential sales. For those who aren’t yet in the market, there are other payment options that will help increase website conversion.
For example, a low flat-rate shipping option is another way to decrease cart abandonment. The lack of local currency, which is used in some countries, is one of the top reasons for cart abandonment in the European Union. The Baymard Institute reports that 20% of European shoppers abandon their shopping carts because they don’t have international payment options. And cash is still the preferred payment option in Brazil. While this may seem like a minor issue, it can turn a loyal customer against you.
The next step in the process is to implement alternate payment options. Using multiple payment methods can reduce the chance of customers identifying fraud alerts. While all technology is subject to technical issues, it’s critical to follow your analytics and review your checkout process to identify the most common reasons for cart abandonment. Ultimately, the best way to reduce cart abandonment is to anticipate and solve problems before they arise.
Makes it easier for customers to pay
One of the key factors in improving customer experience is offering multiple payment methods. Many consumers are confused by fluctuating foreign exchange rates, and making it easier for them to pay using their local currency can reduce shopping cart abandonment by 50%. To increase your revenue by accepting local currency payments, you must offer multiple payment methods and manage the risk of foreign exchange. You can do this with tools like dynamic currency conversion and multi-currency pricing.
Reduces foreign exchange fees
There are two key ways to reduce foreign exchange fees when doing business abroad. One way is to use like-to-like settlement for payments. Like-to-like settlement is the best way to avoid paying excessive fees associated with foreign exchange. The downside is that you need to use a payment processor that will convert the funds before sending them. These rates are typically higher than dedicated FX accounts and you can’t hold foreign currency to reduce your costs. The other option is to use multi-currency pricing or dynamic currency conversion.
In addition to reducing exchange costs, using local payment options and currencies can help you maintain a profit margin. Many businesses are finding multi-currency processing beneficial for administrative reasons. For example, eliminating cross-border fees can result in savings of up to 1%. In addition, like-to-like settlement can save even more. This article will explore this issue in more detail. However, for now, it is best to know the basics of multi-currency processing before diving in.
Another way to reduce foreign exchange fees is to use a no-fee credit card. By using a fee-free credit card, you can make payments and travel abroad without worrying about foreign transaction fees. You should also make sure that your bank’s ATM network includes international ATMs. Avoid converting money at airports and use local currency when charging your credit card. Finally, it’s a good idea to use a currency conversion app to determine the local currency price of goods and services.
Sending money to international vendors in a local currency avoids the risk of currency fluctuations. The exchange rate may change from the time the payment is approved to the time it reaches the vendor’s bank account. Local currency payments can be more convenient and faster than sending wires in foreign currency. By avoiding the middlemen, you’ll avoid the risk of a poor exchange rate. You’ll also reduce your overall payment costs if you send your money in local currency.
Using local payment options and currencies is a great way to increase trust in your business. Local payment options are widely accepted and often preferred by customers in a particular region. Through partnerships with TRU//ST Payments, you can offer multiple payment options from a number of countries. TRU//ST experts will take the time to understand your business objectives and recommend the best local payment method for your specific business model.
Using local payment methods also protects customers’ payment credentials. Many local payment methods require account authentication via an email/password combination, biometric data or a fingerprint. These methods are more convenient than entering credit or debit card details into an unfamiliar website. Additionally, international customers may be unfamiliar with foreign websites. Using a local payment method can give customers confidence in your site and increase sales. Here are just a few reasons why you should accept payment through your local currency and options.