Why is global coverage necessary?
Effective universal coverage requires the right local acquiring partners, as well as an alternative, locally-preferred payment methods. Payment service providers can boost merchants’ sales by up to 40% by offering the right mix of local acquiring and different payment methods, as they maximize conversions and reduce drop-outs. What is the result? More revenue.
The importance of providing locally preferred different payment methods will continue to grow too, with a report from WorldPay revealing that different payments will eclipse card payments by 2017. Different payment methods accounted for 43% of global e-commerce transactions in 2012, forecast to grow to 59% by 2017. Over the same period, credit card payments are expected to decline from 57% of all online payments to 41%. In Europe, different payments are forecast to grow to more than 20% of the total payments market by 2020, according to a recent report from yStats.
The changing online payments landscape requires that payment service providers can offer online merchants a comprehensive range of alternative payment methods, tailored to suit their market.
Achieving global coverage
When it comes to different payment methods, there is enormous diversity between regions, countries and industries, so sufficient global coverage requires an understanding of alternative payments at a local level.
E-wallets are the most popular alternative payment method in North America, replacing transactions made by debit and credit card, and it is expected that this trend will continue. Many countries also have their preferred payment methods, which while secondary to card payments, account for significant proportions of e-commerce transactions. Konbini, a local store payments process in Japan, accounted for 16.6% of online payments in 2012, so should not be overlooked by any business looking to expand into the Japanese market. In Germany, where credit card use in e-commerce payments is comparatively small (21% in 2012), a range of alternative payment methods is expected, including invoice payments, Direct Debit, and e-wallets.
Due to the multitude of alternative payment methods that prevail in global e-commerce, it is important for both merchants and payment service providers to understand the value in having a flexible and dynamic payment set-up. It maximizes conversions on a world scale by accounting for local preferences and regional e-commerce habits.
Find out more about global coverage
When it comes to expansion into new markets, time is precious, so it’s important for payment service providers to be able to provide merchants with accurate and meaningful information as quickly as possible. Within a constantly evolving global payments landscape. PAY.ON’s dynamic Global Coverage tool recently received a major update, making it easier than ever to access payments valuable and meaningful information for 162 countries, 175 card acquirers and 208 alternative payment methods. Go to the List of Global Coverage to find out more: globalcoverage.payon.com.