PPRO launches report to help American businesses maximize their chances of success as they enter new markets.
PPRO, the leading infrastructure provider for local payment methods, released its latest report which takes a look at the global e-commerce market in 2022 and how American businesses can maximize their efforts as they enter new global markets.
To bring US goods and services to a global market, merchants must know how to adapt and localize, including the opportunities and payment methods unique to the regions and countries into which they plan to expand. Considering 80% of consumers will abandon a transaction if they reach the checkout and cannot find a payment method they know and trust, it’s clear that to ensure maximum consumer acceptance and the best possible conversion rates, a site must offer a range of familiar and trusted local payment methods. To better understand this challenge, PPRO’s report provides comprehensive research on international payment methods, trends and cultural insights to help payment companies, merchants and retailers break into the global e-commerce market.
“US merchants and retailers need to understand that in order to compete with international brands, they need to prioritize the customer’s preferences when it comes to payments,” said Claire Gates, CCO at PPRO. “The global e-commerce market is booming and if US merchants want a chance to be top players, they need to be agile enough to evolve with the current payment ecosystem to expand into new regions and win new customers.”
Key findings from the report include:
- Consumers need retailers to care about their preferences. A recent study found that between 35% and 45% of what a consumer regards as a “good service” is contingent upon that person’s culture and background. The more a merchant’s digital channels feel authentic to the shopper’s language and local culture, the more likely that shopper is to complete the transaction. However, localization in this context is far broader than simply translation, important as it is. It means optimizing every aspect of your site and your apps to meet local needs and preferences. While the e-commerce world is more interconnected than ever, localized strategies will always win out.
- Your alternative is their normal: why local payment methods matter. Almost seventy percent of Americans have a credit card, but globally this is true of only 18% of consumers. According to PPRO’s own research, up to 80% of consumers will abandon a transaction if they reach the checkout and cannot find a payment method they know and trust. To ensure maximum consumer acceptance and the best possible conversion rates, US merchants must offer a range of familiar and trusted local payment methods.
- American brands are strong. The good news is that American merchants are competing effectively in these growing cross-border markets. Asked where they bought their last cross-border purchase, 50% of Mexican shoppers, 47% of South Korean, 29% of Japanese, 28% of Australian and Indian shoppers and 20% of Brits all say it was from the United States. As the global cross-border market grows, so do the opportunities: untapped regions and consumer groups that are participating in e-commerce for the first time are a ripe target for merchants, especially because of the acceleration of online shopping during the pandemic. If US online marketplaces, brands and stores want to make the most of these opportunities, they have to be prepared to compete in today’s rapidly changing market. And the competition is fierce.