Ability to accept more payment methods
Offering a wide range of payment method options – especially alternative payment methods – is a key part of doing business inclusively, successfully, and sustainably in emerging markets. From an inclusion perspective, alternative payment methods help more consumers to access digital products and services. From a business perspective, local payment methods help merchants to increase store conversions and deliver a better user journey across the entire checkout process.
According to an industry survey, 92% of global e-commerce customers prefer to shop in their own currency, while 33% are likely to abandon a purchase if pricing is only in USD. That’s why providing local payment options for customers to shop in their own currency is a smart move – it helps localize the overall shopping experience.
Ordinarily, to accept local forms of payment merchants would have to work with local payment acquirers in their target markets. PayU takes care of this on the merchant’s behalf, opening up access to hundreds of local payment methods in key markets around the world.
Increasing approval rates
In addition to acquiring more customers effectively, offering local payment methods has other advantages: namely, it increases payment approval rates and reduces the number of declined transactions. Although some consumers in emerging markets use major credit cards and other common global payment methods, these modes of payment are not as common as some think: in India for example, credit card penetration is only 4%. In Latin America, alternative payment methods account for more than two-thirds of all online payments.
Furthermore, in emerging markets many global payment methods suffer higher rates of false declines when compared with their use in developed countries.
Payments that are made and processed locally, on the other hand, are less likely to stumble into fraud filters and other obstacles, and therefore more likely to result in a successful transaction.