With the advances in technology, businesses no longer need to set up physical stores in multiple countries in order to gain a global footprint. Retail expansion is increasingly occurring through online channels as a way to tap into growth markets, build brands, and learn about consumers, while investing less capital than in traditional formats. An e-commerce site provides retailers with a low-risk option to test new markets and complement existing store footprint. As a result, a number of e-commerce retailers have been aggressively expanding their global customer base in the last decade.
Businesses now face the challenge of handling a larger volume of cross-border transactions. In addition, they also have to take into account consumers' preferences in different countries, their diverse rules and regulations, banks, payment processors, and most importantly, payment security requirements.
Pursuing international online expansion often means battling with already established domestic e-commerce players that typically own a large market share. Competing against these domestic players requires understanding of online consumers within each market and tailoring e-commerce operations accordingly. Hence, there is a clear need for businesses to deploy a robust global payment acceptance platform to fully realise the business potential of international e-commerce.
Here are five key things businesses should consider while choosing a global payment acceptance platform that will enable them to extend the reach of their business beyond borders.
1. Understanding unique payment preferences, while expanding reach
Taking into account the thriving growth of cross-border transactions, businesses need to be aware that payment preferences of consumers generally differ across continents, countries, and even cities. Adopting a payment management solution that would cover a variety of currencies and payment options would offer customers a vast range of payment options.
Funding and settlement in multiple currencies offers customers flexibility and convenience. This allows for seamless cross-border expansion, making it easier for businesses to penetrate into more markets.
2. Full visibility, whenever you need it
E-commerce transactions form a complex web of payment management procedures, involving multiple channels of worldwide banks and processors. This creates an even more complicated process for the merchant in reconciling payment activity to bank statements. In light of this, businesses need to look for efficient, simplified connections.
Getting access to a full range of reports that standardise payment reporting across banks and processors can simplify the tedious process of reconciliation. In addition, complementing these reports with automated payment reconciliation services may assist businesses in eliminating many of the manual processes associated with payment reconciliation and chargeback management.
Automatic reporting and reconciliation is dependent on the ability of a payment platform to integrate the processes with the payment data into a central reporting system. With an integrated administration interface, businesses can obtain access to reports, case status and administration for simplified payment management.
Sign up for CIO Asia eNewsletters.