Choosing online payment methods is one of the most important decisions when setting up an eCommerce store. The more options you offer users, the more opportunities you create to convert. But you need to study every aspect carefully: the market the online store targets, the customer profile, the product being sold, the fees charged, etc.
Does the type of product we sell matter?
The major gains in efficiency by leading logistics companies and the use of dropshipping business models make it easier to sell any product online. While buying furniture, home décor or large appliances online is no longer unusual, a few years ago it was unthinkable due to their size, weight or higher price.
The product is a key factor when deciding which payment methods to offer an online store’s customers.
When we sell high-value products, conversions can drop if we only accept immediate payment of 100% of the price. This is where financing or installment payments come into play.
Companies offering these micro-loans have evolved as the online market demanded. They can now pre-approve installment payments in real time and have cut down the paperwork, making access easier for customers and management faster for merchants. So much so that many online stores let customers conveniently pay in installments through providers such as Cetelem, Cofidis or Paga + tarde, among others.
And does the country we want to expand into affect the decision?
A good strategy to grow an eCommerce business’s sales is, without a doubt, selling in other countries. Going international is a smart move, but it requires thorough research to make the right decisions, including which logistics companies to work with, pricing and competition in each country and, of course, which payment methods to offer customers.
Every country has its own particularities shaped by culture, climate, technological development, economic and political situation, etc., so something we consider normal at home may be less common elsewhere or face restrictions that prevent it from being implemented properly.
Closer to home, Spain has a very specific case: the Canary Islands. Due to their tax and invoicing complexity, plus some customs issues, many merchants choose not to sell there. For this specific case there are solutions such as Click Canarias, which makes it easier for merchants to open an eCommerce channel in this market.
Using a payment method that isn’t widespread in a given country can lead to very low conversion rates due to lack of user trust.
PayPal is an international payment method widely accepted by internet users almost everywhere, but it isn’t allowed in every country (Andorra, for example), and in other countries different platforms have much deeper market penetration.
To avoid this, it’s common to use payment aggregation platforms focused on different markets. If we make a very broad split of the markets we might try to enter, we’d find these options to implement, among many others:
Payment methods for the global market
- PayPal: widely used worldwide, with conversion into more than 25 currencies, it’s one of the most popular options thanks to its ease of use and the trust its buyer protection programs inspire, although there are exceptions in some countries.
- Adyen: offers a worldwide bundle of payment methods that can be configured on demand within its system depending on the countries we want to enter. From Visa, MasterCard and American Express card payments to country-specific gateways such as iDeal (Netherlands), GiroPay (Germany), Boleto (Brazil), JCB (Japan) and many more.
Payment methods for the European market (mainly the Nordic countries)
- Payex: payment aggregation platform focused mainly on Sweden, Norway, Denmark and Finland
- Paysera: although aimed at the global market, it’s strongest in Poland, Lithuania, Latvia, Russia and Bulgaria
Payment methods for the North American market (mainly the USA and Canada)
- Net: covers payments with the main cards (Visa, MasterCard, AMEX, Discover, JBC) as well as payment gateways widely used in that market such as PayPal, Apple Pay or Visa Checkout.
- WorldPay: likewise covers payments with the main cards (Visa, MasterCard, AMEX, Discover, JBC) and payment gateways widely used in that market such as PayPal or V.me by Visa.
Payment methods for the Asian market
AsiaPay: a solution bundling payment gateways for countries such as Indonesia, Malaysia, Thailand, Japan, Singapore, Hong Kong, etc.
Payment methods for the Chinese market
The main payment gateways in China are Alipay, WeChat Pay and China Pay. PayPal also has a specific gateway for this country, since its global solution isn’t allowed there, like most global gateways. Because of China’s bureaucratic complexity, opening a business to this market isn’t easy. In fact, you need a company in the country and, above all, the support of international firms already established in China to ease your entry into this complex market.
Although there are many options, defining the product and the target market are clearly the two big initial filters when you start thinking about this. Our project managers can help you define your customers’ needs in more detail, so they feel confident buying your products in your online store
Don’t hesitate to contact us if you’d like more information.
