Why Multi-Currency should be adopted | Powercash21
Many merchants miss the opportunity to enhance their global reach by failing to include multi-currency payment capabilities.
Multi-currency adoption is well worth considering
Now is the time to consider multi-currency adoption as a key consideration within your business strategy. Based on a recent survey:
“China accounted for 38% of most the recent cross-border purchases. This was followed by the US (15%), the UK (10%) and Germany (9%).”
Physical goods like clothing/footwear, consumer electronics, and health/beauty products were the top choices for cross-border shopping. This helps to illustrate why including multi-currency options is essential for all merchants with an online presence.
The benefits of displaying local currency payment prices
A multi-currency website offers many benefits for both merchants and customers. Some of the most notable benefits include:
- High level of convenience for customers – merchants who display the cost of a product or service in the shopper’s preferred currency, enhance the payment experience and improve convenience for customers. Shoppers then don’t have to manually convert the amount to their local currency which means they can proceed with the purchase faster and hassle-free.
- Lower risk of chargebacks – shoppers are more likely to make a chargeback dispute if the purchase made is not in their local currency. This happens because they might not realize the actual cost of the product when it is displayed in a non-familiar currency which results in chargeback disputes.
- Increased levels of trust from buyers – customers paying online in their local currency feel more comfortable to proceed with buying as they gain a sense of trust with the merchant. Eventually, this will make the customer come back again and increase the likelihood of repeat purchases.
- Positive impact on sales – merchants who adopt multi-currency solutions for their online business, will eventually improve their sales as they will attract consumers from countries across the world.
Whether you process payments online or over the phone, you should choose an experienced payment service provider, like Powercash21, to integrate your business to a payment gateway that can securely process multi-currency payments.
How to sell effectively to a global audience
Selling to a global audience is not an easy task but it is definitely worthwhile. Payment processing is an extremely important aspect of your business when it comes to expanding your sales in more countries or regions. A multi-currency account along with a secure payment gateway is needed to process global payments. However, online merchants should not only consider multi-currency solutions but local payment methods as well.
- Process payments in multiple currencies - Merchants should initially choose the countries they would like to target so they can decide which currencies they should adopt on their website and payment page. Customers around the globe should be able to automatically view the price of a product or service in their local currency no matter the country in which they are located, as soon as they are within your targeted reach.
- Accept local payment methods - Apart from currencies, is important to also consider local payment methods when it comes to cross-border selling. Payment methods such as bank-to-bank transfers, prepaid vouchers, and eWallets are chosen from customers who would like to pay without to necessarily use a credit card. Powercash21 offers some of the most popular local payment methods such as Ideal, Sofort, Boleto, Bancontact, and EPS to support your globalization strategy. Depending on the consumer’s location, different local payment methods should be adopted. For instance, Boleto is a cash-based payment method which can serve Brazilians shoppers whereas Sofort is a real-time bank transfer option that is preffered by Germans.
Powercash21 understands the impact of cross-border selling on a business’ growth and enables merchants to process payments in over 200 currencies for payments made with Visa and MasterCard cards. In combination with alternative payment methods, cross-border selling will become easier and more profitable for your business.
The risks involved with e-commerce global offerings
Despite the benefits of global expansion, e-commerce businesses face various risks when selling internationally. The most common risks involved in a global expansion are:
- Credit/Debit Card Fraud – payments with stolen credit/debit cards are a common threat in online selling, and especially when serving an international market. Unauthorized payments have a huge impact on any business as they negatively affect its reputation and lead to significant financial costs. By utilizing features such as 3D Secure, when you accept payments, you minimize the potential of processing fraudulent payments.
- Increased chargebacks – when selling internationally, merchants may experience an increase in chargeback disputes. It is extremely important that online merchants utilize technology to identify any suspicious payment activity or patterns prior to accepting a payment in order to prevent chargebacks.
- Privacy Issues – merchants accepting cross-border transactions should protect their systems to prevent cases of personal data compromisation, identity theft, cyber-attacks, and spammers.
- Payment gateway vulnerabilities – a highly secure payment gateway will safely store the customers’ credit card data and protect it from being stolen. The use of a PCI Compliant Level I certified payment system is vital, as the processing of multi-currency transactions on a global level leads to increased risk.
- Product returns – a large number of product returns may greatly affect the finances of any business. Since the customers do not see the physical product before purchasing, there is a high possibility of product return if it doesn’t match their expectations.
Powercash21 Multi Currency Payment Solutions
If you wish to cater to a global shopping audience, Powercash21 can support you with a range of multi-currency payment solutions. In combination with our suite of fraud and risk management tools, you can focus on expanding your cross-border sales while we take care of secure payment processing.
To find out how Powercash21 can support your global growth and localization strategies through multi-currency payment solutions, please contact our team today!