Offer local APAC payment methods or learn to live with high cart abandonment rates.
That’s the memo to U.S., U.K., and Canadian firms trying to tap into the rich eCommerce environment of the Asia-Pacific region, as we found in the new study The Emerging APAC Opportunity: Local Payment Methods edition, a PYMNTS and Citcon collaboration.
With APAC, 41% of omnichannel merchants feeling that not providing local payment options hits them hardest. More surprising is the finding that “just 1.8% of these merchants believe that APAC customers want to use such localized methods, while more than one-quarter incorrectly believe that APAC consumers want to use global credit and debit cards.”
Get the Report: The Emerging APAC Opportunity: Local Payment Methods
Localization of payment methods is crucial for success in the APAC region. As the study states, “41% of the businesses that sell to APAC customers without providing localized payment options say their cart abandonment rates exceed 60%,” compared to just 32% of merchants providing local options reporting abandonment rates at or near that level.
When analyzing factors at work that make local payments clear more sales, the research found that “Specialty eTailers and omnichannel merchants are most likely to attribute cart abandonment to a lack of local payment options: 39% of specialty and 41% of omnichannel retailers say so, whereas 14% of D2C merchants and 25% of online marketplaces say the same.
Additionally, the lack of localized payment options ranks sixth on a list that includes unexpected shopping costs, mandatory account creation, and long checkout processes as reasons for high cart abandonment.
See also: The Emerging APAC Opportunity: Local Payment Methods
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