Mobile devices are steadily becoming the go-to tool for online shopping. In 2021 e-commerce accounted for nearly 19% of retail sales globally and, by 2026, the online segment is predicted to represent nearer to a quarter of total global retail sales. Smartphones and tablets are responsible for this trend, as well as shopping apps, which are becoming more convenient and easier to use by the minute. It is no surprise then that mobile payments are now a key component of cross-border e-commerce.
Research shows that mobiles reign when it comes to the most straightforward way for a brand to take cross-border transactions. A rise in fintech companies and payment options highlights how important the personal user experience is in order to achieve higher conversion rates. Surveys conducted by Google and Ipsos revealed that a whopping 62% of users are less likely to buy from a business again if they have a negative experience on a mobile site.
Whatever the payment method, it ought to be fully integrated into your website on e-commerce platforms. In addition, from a technical point of view, your website must be apt for mobile devices and the user experience simple and positive across all platforms.
It is essential that your business is aware of cross-border rules and regulations and complies with all applicable legislation. Investing time into ensuring your website is compliant with the latest Payment Card Industry Security Standards helps guarantee that customers’ personal and financial information is protected. Licences and permits from the local authorities will need to be applied for in order for mobile payments to be legally accepted. Finally, make sure you have a reliable payment processor that supports mobile payments in your target market.
Where Most Brands Make Mistakes in Mobile Payments
E-commerce is booming across the globe. Yet brands tend to forget the key role localisation plays in business and products being well-received in other countries. Localisation is especially key when local payment methods and local regulations enter into play.
What’s more, it is often localised apps which facilitate cross-border e-commerce. For example, 98% of Dutch customers can now pay using iDEAL, with most opting to do so. Klarna, another localised app, works with 70,000 merchants, offering solutions to over 60 million users in Europe and North America. WeChat Pay and Alipay are China’s top dogs. All this clearly goes to show that brands need to offer various geolocalized options if they are to appeal to global consumers wanting to use their preferred payment methods.
Various types of mobile payments are used across the globe. These include SMS payments, Unstructured Supplementary Service Data (USSD) payments, QR code payments and near-field communication (NFC) payments. It is wise to acquaint yourself with these mobile payment options in your target countries. Lastly, make sure that the entire customer experience (from selection to checkout) is optimised for mobile devices, as this is your customers’ daily gateway to your brand.
The Evolution of Mobile Payments
In the coming years, significant regulation in fintech – for which e-commerce is the strongest driver with an annual growth rate of nearly 12% – will likely dictate how easy it is for companies to have a global presence when expanding cross-border and what kinds of regulations are required.
If the regulations become stricter, we might see a scenario in which some large companies are seriously regulated and have a lot of influence in their own countries, but not globally. If, however, more flexible regulations come into play, ones which promote decentralised finance (DeFi), crypto and other new tech tools, such companies could enjoy a level of globalisation. For this reason, brands must take into account both the technical and legal aspects of activating mobile payments for successful cross-border e-commerce, as they will no doubt have an impact on how easy, or complex, it is to expand globally.
3 Strategies to Accelerate Mobile Payments within Cross-Border E-Commerce
1. Be local.
Go Global Ecommerce carried out research into the impact localisation is having and found that its Dutch customers were using iDeal more and more frequently for online payments. Local payment methods such as iDeal, PayPal in the United States, and Alipay in China, have a greater impact on conversion than international credit cards. On top of that, when local payment options were included in cross-border e-commerce strategies, CR grew by 40% for stores, taking over $6 million annually.
2. Focus on the user experience.
A bad user experience (UX) with regard to payment has a negative effect on customer satisfaction and has a knock-on effect on consumers’ confidence in the brand. With mobiles being the preferred device to use when shopping and making payments, the process should be both smooth and transparent. Our research showed that a negative UX, such as having to leave the website for transactions or a payment not integrating correctly, led customers to halt the process or even stop it completely..
3. Be safe.
Your company must take steps to make sure that customers are always in control of their information and data, rather than one or more companies being in possession of it. Having a bad reputation where data management is concerned is very unwise in the digital age. In recent years we have lowered our fraud rate to below 0.02% by using safer technology and human-in-the-loop solutions. By strengthening security measures and conforming to global payment regulations, customer data is safe and secure and this generates trust in the brand.
How Go Global Ecommerce Can Help Your Business’ Cross-Border Mobile Payments
As a Merchant of Record, Go Global Ecommerce has connections with multiple payment providers worldwide. We work efficiently – on an economy of scale – and are flexible due to having connections that allow our clients to do transactions in various local currencies. Gone are the days where brands must negotiate with waves of payment providers. Go Global Ecommerce simplifies business matters for you and protects you from payment-related inconveniences.
If you’d like to find out more about how the Go Global Ecommerce team can help your business set itself up to enjoy successful cross-border e-commerce, get in contact with us today.