Offering local payment methods significantly boosts online revenues
Payments processing is often overlooked by retailers when launching a web presence in overseas markets but this is a mistake especially if they do not recognise the importance of offering the popular local payment types. By Glynn Davis
Ahead of payments service provider Ogone speaking at The Retail Bulletin International Expansion Summit 2013 on March 26th, its head of sales for UK & Ireland Julian Wallis highlights the importance of payment methods when expanding internationally.
“There are lots to consider when expanding overseas. Retailers need to think about localising the offering as this gives a better chance of success. This involves using the local language and having a specific website per country that has a local domain name. However, the payments side is often left until the end and is [often] an afterthought,” he explains.
This is a mistake, he argues, because it means retailers will have invariably spent lots of money and effort to get people to the site but then when they arrive at the checkout they find the local payment methods are not available. This leads to abandoned carts.
“There is a presumption that everywhere accepts credit cards and many UK-centric businesses simply don’t know local markets. They might know of some of the bigger alternative payment types like iDEAL in The Netherlands but not the likes of Open Invoice in Germany that is a newer method,” suggests Wallis.
Part of the reluctance of retailers to adopt alternative payment types has been the effort involved in dealing with individual payment contracts with each of the various providers. With a multitude of payment types around the world the complexity and effort required can mount. Highlighting the numbers of methods out there, Wallis reveals that Ogone has recently introduced 10 new Brazilian payment types to its Collect product offering.
Wallis says Ogone has set itself up as the one-stop-shop for payment types around the world whereby retailers sign one contract with its Ogone Collect proposition and this gives them access to numerous global payment methods.
“Retailers will be aware of acquirer contracts with Visa and MasterCard and it is the same with alternative payment types [around the world],” he says. As well as saving merchants the time and effort of dealing with myriad contracts Wallis says Ogone has negotiated a competitive rate for merchants using its service as it collectively deals with higher transaction volumes than a single retailer could achieve.
He says retailers are also benefiting from the ease-of-use of the Ogone Collect proposition to help them “dip their toe into new markets” and cites Schuh as having implemented the Schuh.eu site for taking European transactions with varying payment methods accepted. “It’s got an EU site now and will localise over time as it takes the markets one at a time,” he says.
Although Wallis suggests retailers in the UK are “catching up slowly” with the need to adopt local payment methods he admits that they still need some convincing. Often this can be easily done as he says a simple switch from only accepting credit cards to also offering local payment types can see immediate increases in transaction volumes of 25%.
Julian joins an impressive list of speakers from George International, Alliance Boots, Austin Reed, The Mothercare Group, The Hamleys Group, Costa Coffee, Bench International, The Javelin Group, Hobbs, Icon Live, Field Fisher Waterhouse, Codex Global. To view the programme and register for this timely eventc in London on 26th March 2013, click here.
