international payment strategies
TRANSCRIPT
International Payment Strategies
Expanding Ecommerce Across Borders
Julian WallisCountry Manager - UKOgone Payment ServicesMob: 07884 [email protected]
Borders? What borders?I’m already
selling online...
My site can be accessed from anywhere in the world...
24 hours a day...
English is the international language...
I accept international credit cards...
The whole world is my
market place!
But...
• Are you appealing to local markets overseas?
• Are you thinking the way local people think?
• Are you possibly excluding potential buyers?
Are you really maximising your online sales opportunities?
Cart AbandonmentVs
Increasing Conversions
Consider this...• Visa and MasterCard represent over 100 million credit & debit cards in the UK alone.
• Amex, Diners and JCB Another 25 million.
• Since 2000, UK internet shoppers have spent an estimated £200bn online, rising from £0.8bn to an estimated £58 billion last year.
• The UK accounts for the highest purchase volume in Europe
• 50% year on year growth rates…18% 2010
Sources: IMRG / Nilson Report
Some say...the UK market is maturing.
online sales set to continue to grow in western continental Europe
However...
How to expand your e-commerce borders?
Local payment methods
??
??
??
Local payment methods
Only credit cards?In the UK...
Source: Ogone Research 2010
Across the borders of the UK...d = less than 15%
The use of debit and credit card is much lower in some countries
Spain >> ?Germany >> ?Austria >> ?Holland >> ?
...less than 65%
...less than 40%
...less than 35%
...less than 15%
Source: Ogone Research 2010
Fact is...60% of all on-line cross-border transactions are not completed because the merchant trader does not provide adequate payment methods for international payments.
Source: Study by European Commission on e-commerce for consumers
Think outside the credit card box
Source: Ogone Research 2010
A variety of payment methods...
Credit Cards
Debit Cards
Online Bank Transfer and Pay Buttons
Micro-payments and e-Wallets
Direct Debit / Offline
Online Consumption Credit
B2B purchasing
Guidelines...
• The landscape offers a huge range of payment methods.
• Consider which countries or regions you are looking to target.
• Choose a payment service provider (PSP) that can provide consultancy.
• Specialist knowledge on local and international payment methods is an essential ingredient for successful international ecommerce.
The barriers to entry can be low but consider these guidelines....
Mapping Payment MethodsNetherlandsiDEAL
Denmark Dankort
Germany ELV
FranceCarte Bleue
BelgiumMister Cash
Austria EPS
Switzerland PostFinance
Local payment methods
Local languages
??
??
Local languages
Multilingual payment pages
How many languages!
Chinese Mandarin Danish Dutch English Flemish French German Italian Japanese Norwegian Polish Portuguese Russian Spanish Swedish Turkish etc…
Consider your payment pages...Who is your target market?
UK Cardholder
English text
UK acquirer
Multilingual payment pages
French cardholder
French text
French acquirer
Multilingual payment pages
Dutch local payment method
Airline industry payment method
Multilingual payment pages
Multilingual payment pages
Multilingual payment pages
German text
German local payment method
Multilingual payment pages
Local payment methods
Local languages
Local currencies
??
Local currencies
Multi-currency options...
Local currencies for local markets... Accepting Euros =
big advantage
Dynamic Currency Conversion = extra revenue!
Consider other currencies ...but balance with the
practical realities
Dynamic currency conversion
Now seeing increasing trend in merchants offering on-line
dynamic currency conversion
www.global-blue.com
www.fexco.com
Multi-Currency DCCAutomatically offer your customers
the choice of paying in their own currency and benefit from an
additional revenue stream
Find a DCC partner
DCC – process flow
€ 75 (DCC amount incl. margin)
$100 (Merchant currency amount)
Customer opts for payment in €
Authorisation in €Transaction processing
$100
€75
Conversion to consumer currency by DCC provider
$ 100,-
Selection of goods
Customer
$ 100,- €
Pay with CC
Customer
Credit card statement
€ 75
Customer
Bank Account/Acq. Statement
$100
Merchant
Query to DCC provider
DCC – cardholder has choice
Local payment methods
Local languages
Local currencies
Acquiring options
Acquiring options
United Kingdom
Other countries
Local vs international
Other considerations
BenefitsCost Savings
Economies of scaleAccelerated expansion
More customersGreater market penetrationReduced cart abandonment
Increased conversionsIncreased revenues
Grow your business...
Local Vs international suppliers
Consolidation of suppliers
Local reporting Vs central reporting
Currency fluctuations
Pricing across borders
Logistics / distribution
Management / staffing
Final thoughts
The whole world can be your market
place!
66% of EU SMEs claim that they only accept transactions from customers who live in the same country
If you want to be really successful you have to consider international trade
Providing a seamless journey during the checkout process will make the customer far more comfortable and give you a better chance of success
The size of the UK market is huge but it’s a lot bigger when you consider an international client base
Find a Payment Service Provider (PSP) that will work with you on a consultancy basis to provide guidance on the best possible approach to developing an international payment strategy
Selling across borders will lead towards increased revenues for UK online retailers. Cross-border e-commerce is the best strategy for success for UK companies in 2011
Going cross border: a logical way to expand your business!
