Providing a combination of micro-commerce privileges and different payment facilities, cross border eCommerce provides a more practical application of international trade. With the introduction of the B2C (From Company to Consumer) trade model, the importance of cross border eCommerce manifests itself. International payment methods make it easier to trade between different countries.
Credit card payment, transfer / EFT payment, alternative payment and payment via mobile applications are among the main payment methods used in cross border eCommerce. Companies and corporations can reach a competitive position in international markets by cooperating with solution partners for cross border eCommerce payment methods.
Payment with Credit Card
Credit card payment is often preferred nowadays due to its ease of use and habit of consumers. However, the popularity of alternative payment methods is pushing the use of credit cards for online shopping to the background in many countries. Especially in European countries, users are favoring alternative payment methods.
For example; while the share of alternative payment methods in online shopping is 75% in the Netherlands, the rate of payment by credit card is around 7%. The situation is 65% to 15% in Germany. In European countries such as England, Italy and Belgium, alternative payment methods are preferred more than credit cards. This situation does not escape the attention of the companies that make cross border eCommerce with Europe. Many domestic companies are also integrating alternative payment methods into their existing payment systems.
Alternative Payment Methods
Consumers want to have control over their shopping experiences. Alternative payment methods offer a number of options that can successfully meet this demand. Alternative payments account for more than 60% of all global trading methods. Sofort, Qiwi, Giropay, Ideal, Stripe and eNETS are among the most widely used alternative payment methods worldwide.
In summary; the days when credit cards are the only way to pay online is now in the past. Cross border eCommerce companies can meet the needs of millions of customers who do not use credit cards in a secure way with alternative payment methods. Companies doing cross border eCommerce can easily optimize their sales by adding alternative payment methods to their online sales platforms besides transfer / EFT payment and credit card payment methods.
Mobile Payment Method
As the world of online shopping and purchasing technologies continue to evolve, customers’ demands and buying habits are becoming more diverse. Businesses prefer to adapt to different payment methods in order to maintain their competitiveness in the crowded e-commerce market. Mobile payment, which has increased in popularity in the last 5 years, makes it possible to shop easily by smartphones.
Mobile payment infrastructures such as Apple Pay, Samsung Pay and Android Pay are often preferred for online shopping besides NFC contact less payment facilities. Users can add credit or debit card information to applications or accounts they have installed on their mobile phones. Thus, secure, easy and fast payment can be made throughout the shopping process.
Money Transfer and EFT Payment
Money transfer / EFT, which is one of the online payment methods, brings some advantages and disadvantages. When payment is made by money transfer and EFT, the price required to purchase service or product is transferred in cash to the bank account of the other party. In order to withdraw cash in return for sales abroad, a SWIFT transaction is required.
In the meantime, the SWIFT code, which provides the standard for electronic funds transfer between international banks, is needed. There is no instalment option for purchases made by the money transfer method. In addition, it is necessary to wait for a certain period of time for the transfer of money between banks and for the approval of the shopping. On the other hand, shopping with money transfer allows attractive discounts, especially for high volume orders.