The growth of virtual knitting hub LoveCrafts is a fantastic story of a young business expanding into new territories thanks to the internet, and underlines how modernising your payment systems and keeping abreast of financial trends can help other brands do the same if they partner with an experienced global payment service provider.
Available to read on the BBC, co-founder Nigel Whiteoak explains some of the regional payment problems that he came up against when trying to grow his company globally.
"One of the biggest realisations we had when looking to expand was that credit card penetration is generally much lower in most markets outside the UK and US," he says.
"In Germany, open invoices are very common where you process the payment using a third party, deliver the goods directly to the customer, and then they pay that third party once we have delivered their crafts. Whereas in Brazil and Turkey they tend to use local credit cards and pay in instalments."
Whiteoak goes on to explain though that as soon as he was able to navigate those problems with a global payment service provider the business began to skyrocket internationally. As well as having to identify the payment habits of people in foreign territories, he also had to identify market information relevant to his business too to get a foothold in those markets.
Growing globally with the right global payment service provider
Discerning the payment nuances and habits of the demographics you wish to target abroad is crucial to international expansion and getting new customers onside; something that a global payment service provider as committed to your growth as you are can help with.
The average documented online shopping cart abandonment rate stands at approximately 69%, with reasons cited including websites being difficult to navigate, too many forms to fill out during the checkout process, a lack of payment options such as PayPal and much more besides
Fix those and brands looking to grow on an international level could almost immediately see an upturn in their financial fortunes. That’s just one part of the problem though and centres mostly around web design.
A good global payment service provider will work much harder to streamline your brand’s internal and external payment systems to cater for advancing technology including contactless card and smartphone payments, keeping their eye on the shopping and payment habits of the markets you wish to attract so you can offer the absolute best service possible to them from day one.
That can also go a long way to futureproofing your businesses against evolving payment technologies, keeping you ahead of the curve globally and showing you as a brand that really listens to and cares about making your customers’ lives easier.
Did you know for instance that Alipay accounts for 54% of online sales in China and the iDEAL payment system represents 44% of sales in the Netherlands? Approaching these systems in the right way is an essential part of your overall market research efforts when you’re looking to expand, and utilising them in the right way could prove to be a key part of your growth efforts.
Fibonatix will also work with you to take issues of international payment compliance from your shoulders, allowing you to concentrate on your business and building relationships that matter. Contact us for more information.