Going local for payments is the best international play for U.S. merchants
With all of the advantages U.S. companies have in the global market, branching out globally seems like a strategic no-brainer.
But the tactical execution of receiving payments can appear more challenging. We have found that leveraging local payment methods are the key to unlocking cross-border sales.
LPMs are catered to the needs of specific regions. Global consumers want comfort and convenience when shopping online, and merchants who provide local payments meet both of those desires.
Here’s an example: Think about a shopper in New York and a shopper in the Netherlands. They will have vastly different payment needs. Americans primarily pay for online purchases with a credit card; in fact, 57% of purchases are paid as such.
The Dutch primarily pay for online purchases using a bank transfer payment method. In many global markets payment preferences vary. For instance, in China 49% of payments are made by E-wallet, while 70% of online purchases in Ukraine are handled with cash.
For U.S. merchants to truly tap into global markets, they have to offer local payment methods to cross-border consumers. American brands already have a marketing advantage worldwide; it’s now just a matter of implementation. The rising global middle class is hungry for American products and now it’s time for U.S. merchants to customize payment methods and convert global sales.