Naturally, global eCommerce businesses need to service customers from all around the world. If you’re new to global eCommerce, you might’ve thought this would be easy — what better customer base to market to than the entire world, right?
Wrong. The truth is, processing cross-border payments is much more complicated, and not every payments provider is up to the task. To succeed in cross-border eCommerce, you need:
- Localized checkout experiences. This means that the checkout page should appear in the native language of the shopper, the price should appear in their local currency, and the checkout options should include local payment methods.
- Bank partners from all around the world. In order to route and process cross-border transactions effectively, the bank they’re routed to should match the regional currency and payment type. Otherwise, they run the risk of being declined or flagged as fraud.
- Like-for-like payout options. Technically, this is a nice-to-have rather than a need-to-have, but by choosing a provider who can settle payments in the same currency as the original transaction, you save tons of money on conversion fees.
- Reconciliation reports. Keeping track of all your transactions becomes a cumbersome issue when you’re accepting multiple currencies from different banks around the world. Global businesses need to receive consolidated, easy-to-read reconciliation statements to ensure accuracy and efficiency.
And that’s just scratching the surface.
Sadly, many businesses who grow globally try to piece together all of these elements by juggling multiple payments providers. Although this is certainly one way to manage payments from different regions around the world, it will likely end up being more trouble than it’s worth, causing a number of pains related to compliance, reporting, and efficiency.
If that sounds familiar, then the smartest next move for your business is to switch to an all-in-one global payments provider. Here’s why.
Why A Global Payments Gateway Will Soothe Your Cross-Border Woes
1. An all-in-one global payments provider will save you money.
If this isn’t enough of a reason to switch, I don’t know what is. A global payments gateway allows you to service your customers from all regions, accept all currencies, and process all payment types — while still benefiting from lower conversion fees and better strategic relationships.
Additionally, consolidating into one provider means that you’re sending a higher volume of payments through that one provider, so you get the benefits of scale. Rather than sending smaller payments through multiple providers, with each provider taking a cut, you can send larger cumulative payments through a single vendor at a lower rate.
2. An all-in-one global payments provider will streamline reporting and reconciliation.
With multiple, disparate payments providers, it can be difficult to perform even the most basic of reconciliation reporting and close your books accurately at the end of the month. Luckily, a global payments gateway can help you avoid this operational headache.
By consolidating into one provider, you receive a single, consolidated report, including every transaction from every region, currency, and payment type. Just imagine how much more efficiently your business could operate without having to decipher multiple reports from different providers.
3. An all-in-one global payments provider will maximize your payment success rates.
Unlike a siloed payment provider, which interferes with approval rates for global payments, an experienced global payments provider understands payments on a global scale and knows how to properly route transactions to maximize payment success and minimize costs. With a provider who can perform intelligent payment routing to send transactions to the bank that best matches the currency and payment type, you’ll have lower decline rates, lower fees, and ultimately, more revenue for your business.
4. An all-in-one global payments provider will improve the customer experience.
Without a doubt, this is our favorite benefit of a consolidated global payments gateway. Localized checkout experiences and flexibility on how to pay means a simpler checkout process, fewer abandoned shopping carts, and happier customers.
Plus, because a global provider can process and settle payments in the currency of the original transaction, shoppers won’t see cross-border fees from their credit card issuer on their statement. With all the right ingredients for an excellent online shopping experience, you’ll improve sentiment for your business and bring in repeat customers.
5. An all-in-one global payments provider will give you the freedom to do more with your business.
What do you get when you add together easier reporting, improved customer satisfaction, operational efficiency, and reduced costs? Well, you get a better business with more room to grow.
That extra money can be funneled into product improvements, satisfied customers are more likely to engage with your brand, and streamlined operations frees up your time to focus on the strategic, long-term vision for your business. With that, you have all the makings of a highly successful global business.
Ready to Grow With A Global Payments Gateway?
It’s clear that consolidating your payments solutions is the way to go. But what’s the first step?
The secret is to make it an iterative process. Rather than ripping out everything at once and replacing it with a global provider, focus first on your biggest pain point and slowly replace the old with the new. Think about the top regions where you sell, the most popular currencies, and the most common customer complaints, and start there. That will minimize the disruption to your business as you make the switch.
As always, if you need advice or information about payments, BlueSnap is happy to help. Start your journey to a better global solution by contacting us today.