Local Payment Methods: Why are they Important For Your Business?

The significance of integrating local payment methods for expanding your business.

Check-out process refers to a customer's journey starting with the 'Buy Now' button. According to a study, 87 percent of eCommerce shoppers abandon their carts at checkout. This data suggests that a good checkout experience is essential to any store. Moreover, nearly 4.2 billion eCommerce shoppers will be active by 2023. If online businesses fail to look at their checkout process, this can result in financial losses and a drop in customer retention rate.

Customers have different preferences over processes including preferred payment methods. To position your store as a global brand servicing customers across different borders, it is advisable to facilitate payment options within their reach. The best way to do this is by implementing local payment methods.

What are Local Payment Methods?

XanPay - Local payment methods: why are they important to grow

Also called LPMs, local payment methods are alternative methods of making and accepting payments supported in specific regions. They could be open invoicing, mobile payments, bank transfers, digital wallets, or local debit networks.

The best way to build an inclusive checkout experience is by implementing a local payment gateway beyond traditional payment solutions and credit/debit cards. An effective gateway is trustworthy, easy to use, and secure. The right payment gateway ensures that your customers access their local payment methods. This further ensures that your customer retention rate in the checkout process is increased.

In this article, we look at how to build an inclusive checkout process by integrating local payment methods.

Benefits of Inclusive Local Payment Methods to a Business

Choosing a diverse local payment method gateway reflects a brand’s motivation to serve all its customers. This drives more conversion, boosts trust, enhances customer experience, and strengthens customer loyalty.

  • Trustworthy - Customers are impressed by local payment methods because they make them feel at home with a store. Trust is granted, and this builds customer loyalty. Besides, this is a payment method they understand and will go a long way in simplifying the checkout process.

  • Driving conversion - Customers will abandon their cart if they fail to see their preferred local payment method. This could be even more annoying if the customer spent lots of time navigating your store to find a product only to waste their frantic efforts through a foreign payment gateway. Offering local payment methods boosts conversions by eliminating such frustrations.

  • Boosting customer experience - Bring convenience to your customers through an easy checkout. Customers want simplicity, or else you risk having lots of abandoned carts.

Which Businesses Need Local Payment Methods

xanPay - which businesses need local payment methods

The shift to digital payment methods is being observed in businesses to increase their user base and boost sales in local and international markets. Let's look at some segments most likely to benefit from integrating local payment options within their infrastructure.

  • Freelance Business - Freelancing has gathered huge momentum after covid-19. The trend of skilled workers is leading to more businesses opting for freelancers to work on a contractual basis. To expand their operations and build their brands, freelancers need to offer local payment methods to their clients.

  • Online Marketplaces - Online marketplaces are gaining popularity with an increasing number of people buying goods and services online. Furthermore, these marketplaces encompass global customers from all across the world. To grow their user base and offer an optimized experience, marketplaces need to offer local payment methods to their consumers.

  • B2B - As businesses begin transacting with each other on a global network, there needs to be an innovative framework for payment solutions that cater to their needs. With local payment methods, the transaction processes between two enterprises in different geographical locations become considerably simpler.

  • B2C - The B2C marketplaces are no longer restricted to conducting their operations within their localized boundaries. Additionally, a robust supply chain network ensures that enterprises can directly and effectively reach their cross-border consumers. Hence B2C solutions need to implement local payment methods within their infrastructure to connect to a wider audience.

How Can I Accept Local Payment Methods for my Business?

XanPay offers an innovative solution for facilitating local payment methods in multiple countries in a much faster, cheaper, and easier manner. By integrating XanPay into your infrastructure, you can start offering local payments to more than 15 countries. Moreover, the payment gateway solution enables you to receive payments in your preferred payment option. In contrast to leading payment service providers, XanPay charges a very low transaction fee and incorporates a faster process for merchants to receive their funds.

Bottom Line

Paypal and Credit cards might be the world’s most popular payment methods, however, the traditional financial payment gateway solutions have several drawbacks. Paypal restricts users in most countries and finds it a nuisance. Bring a convenient customer experience to your shoppers by adding local payment methods that reflect your customer’s respective geographies. If you sell products in multiple countries, you should offer the local currency payment facility to the customers to reduce cart abandonment and grow your sales and revenue.

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