Today, all business is global. eCommerce enables anyone, anywhere to find, evaluate, purchase and become a loyal customer of your products or services.
As Direct Selling Organizations (DSOs) continue to evolve in this global, digital landscape, expanding into new markets is a compelling opportunity to maximize growth. However, the complexities of cross-border transactions – specifically low authorization rates which result in negative customer experiences – pose significant challenges.
In fact, cross-border authorization rates typically cost companies over 20% of their transactions. This makes testing any new market with cross-border transactions extremely difficult.
The solution lies not in retreating from these challenges but in leveraging innovative financial solutions to address them. Enter alternative payment methods (APMs), a resource that is paving the way for DSOs to effectively penetrate new markets and enhance their global reach.
Before delving into the advantages of APMs, it's important to fully understand the problem at hand. Processing cross-border transactions traditionally involves a convoluted network of financial institutions, regulatory frameworks, and currencies. This complexity leads to higher failure rates and subsequently leaves a significant portion of potential market profits unrealized.
It also leaves potential customers with a negative brand impression.
Here you are entering a new market. An interested customer wants to try your product / service. They can’t complete the purchase process. They leave frustrated. It’s a double whammy – negative financial impact and negative brand impact.
APMs represent any non-traditional form of payment that doesn't involve a direct transaction from the customer's credit or debit card to the vendor. These methods include digital wallets, bank transfers, prepaid cards, mobile payments, buy-now-pay-later, and more. The variety is expansive, and most important, it is localized – hyper-localized. Each country or region has its preferred APMs that are popular among consumers. Many countries and regions have APMs that are popular among different segments of the market, too. It’s not one-size-fits-all.
For DSOs looking to venture into new territories, the adoption of these hyper-localized APMs can significantly reduce the barriers to entry. It not only enables successful transactions but also enhances customer experience by providing payment options that align with local preferences.
As effective as APMs are, each country's unique and dynamic payment landscape requires businesses to stay flexible and responsive. This is where – and why – a payment orchestration platform shines.
A payment orchestration platform provides a centralized hub for managing multiple payment providers, methods, and systems, enabling businesses to easily introduce and support different payment ecosystems around the world. By aligning the right payment methods with the appropriate markets, these platforms ensure an efficient and seamless cross-border transaction experience for you (the seller) and your buyers.
These platforms, combined with locally recognized APMs, offer businesses the chance to fully test a market before committing large amounts of resources to expansion. Companies can use the gathered data to shape their strategies and optimize their operations for full scale expansion in these new markets when, and if, appropriate. Think of it as a low risk, high reward trial.
The era of eCommerce has brought the ability to test global markets right to our fingertips. But this opportunity is only as valuable as our ability to harness it. It's time for DSOs to consider alternative payment methods as more than just transaction tools - they are a strategic resource that is instrumental in driving global expansion.
By recognizing the significance of alternative payment methods and payment orchestration platforms, DSOs can create expansion strategies that are informed, effective, and profitable.
The global market opportunity is immense, and these solutions are key to unlocking it.
MassPay will open the door to global expansion for you. Are you ready to step through?