With the ongoing increase in online purchasing behaviours, both before and post-pandemic, now is the time for businesses to economise on this opportunity and seriously consider global expansion. Although growing into new markets can come with its own set of challenges, leveraging the support of a global payment service provider can ensure the reward outweighs the effort in the long run. We take a look at a good global expansion business case before exploring the ins and outs of going global with the right payment services provider.
Navigating challenges that come with expanding into new markets
The growth of virtual knitting hub LoveCrafts is a fantastic story of a young business expanding into new territories thanks to online opportunities, and highlights 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. Let’s look at how going global is more achievable for businesses when they partner with the right PSP.
Nigel Whiteoak explains some of the 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 goods have been delivered. Whereas in Brazil and Turkey they tend to use local credit cards and pay in instalments.”
However, Whiteoak goes on to explain 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 to get a foothold in those markets.
Growing internationally with a global payment service provider
Discerning the payment nuances and habits of the demographics you’re looking 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 just under 70%, with reasons cited including extra costs like shipping, slow loading times, complex checkout processes with too many form fields, and needing to reenter information more than once.
By addressing checkout pain points like these, 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 and optimisation.
How working with the right global payment service provider can ensure your expansion plans are a success
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. They will also keep their eye on the shopping and payment habits of the markets you wish to attract so you can offer the best service possible to your new customer base from day one.
For example, did you know that Alipay accounts for 95% of online sales in China and the iDEAL payment system represents around half of the 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 go global, and utilising them in the right way could prove to be a key part of your growth efforts.
Keeping ahead of the curve globally and showing your brand really listens to and cares about making your customers’ lives easier can go a long way in future-proofing your business against evolving payment technologies, no matter where your customers are located.
Payment service providers can support you in planning your entry into new markets and addressing any challenges. A good provider will have the experience, expertise and technology to help you scope out your market entry strategy for the regions you’re targeting and determine the key requirements and considerations.
For more information about market entry strategies and how PSPs can support you, check out our blog: What to consider when entering a new market.
How Fibonatix makes global expansion easy
At Fibonatix, we pride ourselves on giving businesses the payment solutions they need to succeed, especially when expanding into a new market, including bespoke payment processing solutions and risk management support.
As a leading global payment services provider, we also understand the importance of keeping up to date with different payment regulations around the world and helping businesses to meet their compliance requirements. Our global expertise lets us match the right solutions to your specific needs, provide growing businesses with:
- Payment gateway solutions with advanced payment services, customisation capabilities and integrations with a wide range of platforms
- Comprehensive reporting and analytics, including real-time transactional data
- Risk management expertise
- Business intelligence
- Seamless onboarding and ongoing support
Fibonatix also works with you to tackle international payment issues, allowing you to concentrate on your business and building relationships that matter. Explore our payment solutions or get in touch to discuss your business’ globalisation goals.
This article was first published in October 2019 but was updated in April 2022.