Consumers’ interest in making cross-border eCommerce purchases continues to grow, with the value of global cross-border retail payments predicted to increase from $1.95 trillion in 2016 to $3.56 trillion in 2022. Yet, consumers have not always expressed satisfaction with these experiences. eTailers looking to succeed outside their home markets must localize their customers’ buying journeys, including tailoring payment offerings to each market they serve. Global merchants must also ensure that their eCommerce sites are streamlined, transparent and secure.
In the January edition of “Cross-Border Retail Payments Tracker®,” PYMNTS explores how the pandemic-driven boom continues to drive cross-border commerce and how consumers increasingly expect a localized and frictionless shopping and payment experience.
Around the Cross-Border Retail Payments Space
More than three out of four online consumers in Australia, Canada, China, France, Germany, Japan, the United Kingdom and the United States have shopped with eTailers outside their home countries this past year, up 69% from 2019, according to recent research. With cross-border eCommerce on the rise, the time is ripe for companies to launch or expand their global eCommerce efforts, but challenges remain. Approximately half of the cross-border shoppers cited high shipping costs and long delivery times as major deterrents to shopping across borders, and global consumers also expect transparency regarding taxes and duty costs.
While cross-border merchants are adding local payment options to their sites, adoption is not as widespread as it could be. Chuck Huang, founder and CEO of Citcon, cites two important considerations for merchants implementing new payment gateways to support localized transactions. These include gateway support for enough payment methods to cover an extensive customer base and ensuring that the gateway integrates seamlessly into the site to avoid slowing the checkout process.
For more on these stories and other cross-border retail payment developments, read the Tracker’s News and Trends section.
GiftBasketsOverseas on Overcoming Cross-Border eCommerce Challenges
The pandemic has prompted many retailers to move to online and mobile platforms and develop global footprints. This move has led to a boom of new cross-border eCommerce activity and several new challenges to navigate as organizations engage with more international consumers.
In this month’s Feature Story, Dmitriy Peregudov, CEO of GiftBasketsOverseas, explains how the company supports multiple local payment options in regions around the globe and works to meet consumers’ expectations for a localized shopping experience.
Deep Dive: How Digital Payment Options Impact Cross-Border Customer Satisfaction
As the health crisis continues, cross-border shopping continues to gain popularity. To support the increased volume of cross-border transactions, global merchants will need to find ways to reduce current cross-border frictions.
This month’s Deep Dive explores how cross-border eTailers enhance consumer satisfaction and engagement by providing a localized and frictionless cross-border eCommerce experience.
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