Consumers worldwide are now accustomed to the speed and convenience that online shopping offers and many have even made their first forays into international eCommerce in recent months. Cross-border shopping is only expected to grow in popularity. In fact, the global business-to-consumer (B2C) eCommerce market’s projected compound annual growth rate (CAGR) of nearly 10% through 2028 is a testament to this trend.
This is not to say that eCommerce merchants will have an easy time serving customers in new markets, even though their global growth potential is considerable. Customers want to make purchases — even those from international merchants — using the local payment methods they favor, and merchants will be tasked with incorporating a myriad of payment methods to help them operate internationally more efficiently.
One solution, in particular, can help merchants optimize their payments as they expand: payments orchestration. Payments orchestration layers provide merchants with a single access point through which they can add or remove various capabilities to or from their payment stacks, helping them accelerate the time to new markets and ease entry.
The “Accelerating Time To New Markets Playbook,” a PYMNTS and Spreedly collaboration, examines the payment management considerations that cross-border merchants must make when they enter new markets — and how payments orchestration can help.
eCommerce activity is booming worldwide, especially in markets like Latin America, where cash use has historically reigned supreme. The use of digital payments rose by approximately 59% in Colombia between 2019 and 2020, for example, with more than 1.6 million of the nation’s consumers downloading and activating digital wallets for the first time. This growth is exhibited across the region, with consumers there conducting 5% more of their mobile purchases via mobile app year over year in 2021.
Merchants will have to provide the right mix of digital payment types to succeed in Latin America and elsewhere, but operational efficiency will also play a role in their success. Minimizing false declines will be a big part of this, especially as payment declines cost merchants $7.6 billion in 2019 alone. Even more money is likely to be on the line in the future if merchants do not get a handle on false declines.
For more on these stories and other payments orchestration headlines, read the Playbook’s News and Trends.
Payment flexibility is the name of the game for travel businesses entering new markets, but adopting the localized payment capabilities they need to adequately serve potential customers can take time and resources.
In this month’s feature story, Michael Gradek, co-founder and chief technology officer of travel service Busbud, dishes on how payments orchestration has helped the company accelerate its time to market and better negotiate with payment service providers (PSPs).
eCommerce merchants have to move fast when adding and removing payment capabilities from their payment stacks as they enter new markets, but it can be challenging to determine which options will give them the best return on investment (ROI) before committing to a solution.
This month’s Deep Dive examines how payments orchestration layers can help merchants ascertain which payment gateways may be best for them and how this can give them more leeway as they bargain with PSPs.
The “Accelerating Time To New Markets Playbook,” a PYMNTS and Spreedly collaboration, examines how payments orchestration can help eCommerce businesses supercharge their payment strategies and power international growth.
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