Suitable Payment Systems for eCommerce Sites

by TRILOGI Press

Choosing online payment systems is one of the most important decisions for setting up an eCommerce site. The bigger the number of options you give users, the bigger the number of opportunities you have to generate conversions. But you need to study every aspect: the market targeted, the customer profile, the product, any commissions, etc.

Does Product Type Affect the Decision?

Major improvements in main logistics firms’ efficiency and drop shipping business models facilitate online sales for any product. It’s now normal to buy furniture, design items or large home appliances online, although this was unthinkable only a few years ago, due to their size, weight and value.

It’s worth paying close attention to your product when deciding which payment systems to offer online customers.

Conversion rates may decrease if you only accept 100% up-front payment when selling high-value items. This is the scenario in which finance and installment payments start to play a role.

The companies dedicated to this kind of micro-loans have evolved with the needs of the online market. They are now capable of providing pre-approvals for installment payment plans in real time, and have also reduced the volume of steps required to facilitate access to customers and to make managing these transactions quicker for sellers. Now numerous online stores offer customers the option of paying comfortably for their online purchases in installments through specialist organizations.

Does the Country you want to Launch Influence the Decision?

Opening sales in another country is unquestionably a good strategy for increasing eCommerce sales. Internationalization is a good decision, but it requires rigorous market studies to make the right decisions about subjects including which logistics companies to work with, price comparisons and studies of the competition, as well as of the payment systems you are going to offer customers.

Each country has its own characteristics due to culture, climate, technological evolution, the economic and political situation, etc. This means that something you take for granted at home may not be as established abroad or may suffer from restrictions that make it impossible to operate correctly.

Using a little known payment system in a country may lead to very low conversion rates due to a lack of user confidence.

The PayPal international payment system is widely approved by internet users globally, but it’s banned in some countries, like Andorra, while other countries have other platforms with a much bigger market penetration.

Sellers often use grouped payment system platforms targeting different markets to avoid this situation. Here’s an overview of some of the options you  could implement for the various markets you may wish to launch:

Global payment systems

  • PayPal: rolled out across the world and operating in over 25 currencies, this is one of the most popular options as it’s easy to use and offers strong protection programs to buyers (except in some countries).
  • Adyen: offers a group of global payment systems and can be configured to suit the seller’s system, according to the countries in which they wish to operate. Ranges from payments with Visa, MasterCard and American Express to country specific payment gateways such as iDeal (Holland), GiroPay (Germany), Boleto (Brazil), JCB (Japan) etc, etc.

Payment systems that focus on the Asian market

  • AsiaPay: solution that groups payment gateways for countries like Indonesia, Malaysia, Thailand, Japan, Singapore, Hong Kong, etc.
  • IPGPay: is a flexible and customizable payment for Hong Kong able to process online payments in over 40 currencies.

European payment systems (mainly for the Nordic countries)

  • Payex: a grouped payment platform focused on Sweden, Norway, Denmark and Finland.
  • Paysera: although this is focused on the global market, it has greatest penetration in Poland, Lithuania, Latvia, Russia and Bulgaria.

Payment systems that focus on the North American market (principally the US and Canada)

  • Net: which covers payments through all major cards (Visa, MasterCard, AMEX, Discover, JBC) as well as payment gateways with major penetration in these markets like PayPal, Apple Pay or Visa Checkout.
  • WorldPay: also covers payments through all major cards (Visa, MasterCard, AMEX, Discover, JBC) as well as payment gateways with major penetration in these markets like PayPal or by Visa.

Payment systems that focus on the Chinese market

In China, the main payment gateways are Alipay, WeChat Pay and China Pay. PayPal has a specific gateway for China as, like most global gateways, its Global solution is prohibited. Given the bureaucratic complexity of China, launching operations in this market is no easy task. In fact, you need a company based in China and the support of international companies already set up there to facilitate entry into this complex market.
Although there are numerous options, the type of product and market you wish to reach are two key aspects that filter your choices when it comes to addressing this issue. We can help you define your customer’s needs in more detail, encouraging them to buy your products from your online store.

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