Here at BlueSnap, we know that cross-border commerce presents both new growth opportunities and new challenges for businesses. An amazing 57% of shoppers have made a cross-border purchase in the last 6 months. This presents significant growth opportunities for businesses. But, to get this right, businesses need to be prepared to address three main challenges.
1. Checkout abandonment
2. Payment acceptance
3. Increased fees
Checkout abandonment happens when a shopper intends to purchase the items within the cart, but doesn’t complete the checkout process. In cross-border commerce, this often happens because the checkout isn’t localized to the shopper – it doesn’t have the preferred payment methods, currency or language. For example, in the Netherlands, 57% of eCommerce flows through the Dutch direct banking payment method, iDeal. So, if businesses are selling into that market without offering iDeal, there’s a good chance they’re losing sales.
When it comes to payment acceptance, banks can become very uncomfortable about accepting cards issued in another country or region. If you’re taking a card issued in France, for example, and trying to process it cross-border to a bank in the U.S., the likelihood of that payment being declined is much higher than if the payment was processed in Europe. This mismatch of where the card was issued and where the payment is processed, also results in the business incurring a high cross-border fee assessed by the card networks, usually up to 1%. And if the transaction occurs in one currency and settles in another, businesses can incur additional foreign exchange fees.
At BlueSnap, we give businesses a better way to accept payments globally. Our All-in-One Payment Platform, connects businesses to a network of more than 30 global banks, which increases payment conversion and lowers costs in multiple ways. It helps keep payments local, to improve payment acceptance and lower cross-border and FX fees. It intelligently routes payments to the bank most likely to approve the transaction. We also help businesses deliver a localized checkout experience for shoppers. 100 shopper currencies, more than 100 global payment types and eWallets and 29 languages. With BlueSnap’s All-in-One Payment Platform, businesses have the tools they need to increase sales and lower costs on a global scale.
To learn more about how BlueSnap helps businesses increase payment conversions, visit bluesnap.com
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