Why you should accept global payments
Entrepreneurs and business owners who are seriously thinking about the global market should consider accepting payments using the most well-known global payment methods not only their home country but in other countries as well. Today, global e-commerce ensures huge opportunities for business owners but, as is often the case with buried treasure, there are many challenges to overcome without any clear road map to follow. Almost 70% of consumers have abandoned an online retail site because of how slow the payment process is. Close to half of the customers have chosen not to complete a transaction because they could not pay with their preferred payment method.
As a business owner, you can understand how crucial it is to offer prospective customers with their preferred local payment method of choice. This also helps you stay on top of new payment options as they become available in the market. In this fast-paced world, business owners have to extend their brand globally and thus adhering to the global payment terms. Accepting payments internationally will always give you a competitive edge. Offering a single payment mode doesn’t cut it anymore. For instance, some countries credit cards don’t use credit cards to pay for purchases, they have other methods.
How to start accepting global payments
The payment processing industry is filled with jargon which requires patience and in-depth understanding. Think of it this way, if you can’t explain it to a kid, you don’t understand it yourself. When a customer gets on your website, picks an item and goes to the checkout or the shopping cart page to pay for it, you should provide them with the payment option that they prefer.
You must understand your market and customer payment preferences and incorporate the best possible solutions to keep customers engaged with your business. Small business owners should also use global payments if they want to capture global markets. You do not need any special licenses or permits to start accepting money from customers globally.
If you are an entrepreneur or SMB owner who is planning to accept global payments for your e-commerce or related businesses, follow these steps:
1. Set up your business account
If you have incorporated your business and have chosen a name, you must first set up a business checking account so that you can deposit checks made out to your company. This is the first step in accepting global payments. Meanwhile, to open a business bank account, you will first need to request a tax ID number from the respective financial body of your country where you intend to do business.
2. Set up a merchant account
A merchant account is essential in case you want to accept credit card payments. To accept credit cards, you need three things:
-A credit card merchant account
-A bank account
-The way to process the actual payment
A merchant account enables your customers to pay their bills through various cards where the fund will be transferred to the bank account you designate. The actual start-up fees for setting up a merchant account would be $50 to $200, plus monthly and per-transaction fees. There are multiple merchant account providers like Paypal, Square, Cayan and more.
When money is involved, you should ensure that your customers’ purchasing experience on your site is seamless and so that your customer’s experience is as positive as possible. There is no denying that Paypal is the best when it comes to accepting and receiving payments online. Alternatively, technology has opened doors for a number of competitors like Due, Stripe, Dwolla by offering cheaper options, faster transactions, and enhanced security provisions. You must be very careful when choosing your payment gateway because each has its own and unique features.
What are some options for accepting global payments in developing countries
If you are planning to expand your business in developing countries, you definitely want to do some research first. For example, countries such as Bangladesh restrict credit card usage among their population where you have to look for alternate payment options. There are many countries that hardly use credit cards such as South Asia, various places in the Middle East, and many areas in North Africa.
Business owners must have alternative payment options to help ensure you have a wide range of business. It’s very important to understand the rules before you start making sales. Be prepared to find payment solutions for your customers, especially in markets that are different from the U.S. Here are some alternative payment options that you could consider in 2019:
Blockchain – Within the realm of e-commerce or any kind of international transfers, the most logical use for blockchain is to expedite the transfer of funds from one party to another. With Blockchain, you can receive funds on behalf of your business from your customers globally directly, securely, and instantly with very low fees.
Amazon Payments – With the technical strength of an established platform you could offer a swift checkout and payment process for your customers to pay for what they purchased on your website. If you are using AWS it can help simplify your internal processing by having everything with 1 company.
Google Wallet – Offer a cool, easy & engaging shopping experience with Google Wallet both in-store or online. There is an option called Wallet Objects API where the merchants have the option to showcase savable offers or integrate a loyalty program.
MasterPass – This is a MasterCard’s solution to streamline the customer’s checkout process. After selecting the MasterPass button on your eCommerce store, a customer can choose the integrated digital wallet to use and then initiate their payment process.
Local Options – Whichever countries you decide you want to see your products to, ensure you research what is popular there, that way you can integrate it.
There are numerous options available to accept global payments online. The one that works best for you depends on the nature and size of your business. The next step would be figuring out your fulfillment services to ensure your customers receive their items. If you are planning to expand your business globally and wanted to build a scalable E-commerce website integrating blockchain & online payment gateways, it is advisable to reach out to a trusted digital partner like SDI. We have helped entrepreneurs, SMB owners & enterprises establish their online empire globally.
Get in touch with Rob LaPointe today for a free consultation at: at email@example.com