Quick, Intuitive, Customer-friendly: These are the defining traits of any business, especially in a modern technology-driven world.
E-commerce is a prime example of an industry adhering to these standards. The global online retail market was worth over $3.53 trillion in 2019, accounting for 16.4% of the global retail sales. Industry experts are expecting a double-digit growth of the online retail industry in the upcoming years.
While growth numbers are impressive across multiple segments and regions, online retailers must address the inherent challenges of online marketplaces, especially in cross-border retail purchases.
Cart Abandonment – a critical issue in global e-commerce
A study finds that at least three out of four online shoppers abandon their carts after adding items because of various reasons, such as: extra high costs, complex checkout process and a lack of preferred payment options.
“Cart abandonment is a major reason for revenue churn among online retailers,” says Adam J Clarke, CEO of Macropay, a proprietary platform for local and alternative payment methods. “’In most cases, cart abandonment from a payment perspective is due to a long-winded execution of payment or the customers’ favorite payment method not being available to them,” adds Clarke.
A study of more than 30,000 online shoppers finds that 92.2% of online customers prefer to shop in their local currency, with over a third likely to abandon the purchase if the pricing is in USD only.
What makes these findings crucial is the fact that 57% of online shoppers purchase products from international retailers, with shoppers from the EU (63.4%) leading this trend, followed by Asia-Pacific (57.9%), Africa (55.5%), and Latin America (54.6%).
Adding local payment methods to their online stores can help retailers improve their cart abandonment rates. A diversity in local payment preferences is something that most retailers ignore or do not understand. Payment methods that work in the US may not work for other regions.
Alternative payment methods offer a solution
Alternative payment methods could be the answer to payment-related challenges. According to a new report, alternative payment methods are outpacing, once dominant, card transactions in the global e-commerce market. The report further finds that e-wallets are expected to account for more than half of the worldwide e-commerce transactions by 2022.
China has the largest e-commerce marketplace, outsizing the US by one-third, and it’s a perfect example of how alternative payment methods are dominating the online retail industry.
A similar trend is witnessed in Brazil as well as India. While Boleto Bancário is the most popular alternative payment option in Brazil. India is witnessing disruption in the payments space from local players like Paytm.
Clarke states that “alternative payment methods allow online retailers to cover both bases: local and global payment options, giving them a compelling solution for payment-related revenue churn”.
Alternative payment methods offer a simple and fast way to global expansion for online retailers. Working with an alternative payment solution provider can help online store owners break cross-border payment barriers.
Macropay: An intuitive payments platform for online retailers
Instead of relying on a handful of payment options, online retailers can add alternative payment methods to their e-commerce platform. Macropay brings the sophistication of local payment methods to international sellers.
A critical component of winning over local shoppers is to provide them with a means to pay in their native currency. Macropay understands the psychology of online customers, and that’s why it has put together as many as 13 payment methods (and counting) within its payment solutions. It supports major preferred payment options such as: EPS, Giropay, iDeal, Multibanco, POLI, Sofort, Trustly, Boleto Bancário, SEPA, and Bancontact.
Macropay understands the hard work online retailers put forth in their e-commerce stores, so it only makes sense to offer a payment solution that doesn’t complicate the entire process. As a part of its intuitive design concept, Macropay has created a single dashboard to control all the transactions happening on an e-commerce store. Online retailers can tap a single button to view the entire financial aspect of their business, let it be tracking refunds, converting multiple local currencies to a single currency, or identifying the most popular payment method among shoppers.
Online retailers often must go through a tiresome, numbing onboarding process, which could sometimes take weeks and a dozen of contracts. Macropay streamlines the entire customer onboarding process, using a single contract to get started. The team believes that online retailers should get the flexibility and time to focus on their primary business instead of trying to figure out the best payment solution.
Macropay puts special emphasis on the security of online payments, and that’s why it has integrated cutting-edge security features, including automated ID verification, facial recognition, and two-step authentication.
E-commerce store owners have access to live 24/7 customer support, which means they no longer have to generate tickets or work with legacy chat support system.
Every online retailer needs a payment solution provider he can count on. Macropay bridges that gap between their revenue targets and current sales with its seamless payment interface.
If you’re interested in finding out more about Macropay, click here to get a quote.