Most e-commerce businesses are well aware that their customers enjoy having different payment methods to choose from. In Europe alone, there are over 100 of these methods a business can offer. It’s a challenge to research which are most appropriate for your business, particularly when you cross borders to sell.
Though many are likely knowledgeable in the payment methods preferred in their home country of business, understanding which to choose to have available when doing business in other countries can get complicated. Let’s take a look at what you need to consider.
The factors that actually matter
It’s difficult to feel certain you’re selecting the right payment methods your customer base will want, with how many alternatives are offered today. Each method will come with its own unique pricing structure, and therefore have a different cost for you to offer to your customers.
Before you think the best option is to offer dozens of payment methods to appeal to the widest possible customer base, you have to know the cost of each of these payments to your business.
Finding the right ones can seem like a tricky question, and requires the consideration of quite a few factors:
- Product: are you offering physical goods? Services? Digital or physical products? If you’re offering physical goods, for example, one payment method might be more appropriate than another.
- Industry: The preferred payment methods will depend on which industry you’re in, whether it’s sporting goods or experiences that you offer.
- Buyer persona: Who is your target market? Do you know their age, whether they’re tech-savvy or other important demographics?
- Geography: Where are most of your target customers located? There may be local schemes that are popular there, or there may be other aspects of payments that change due to location. Local culture and habits matter more than some might realize.
- Regulations: GDPR, Payment Card Industry Data Security Standard (PCI DSS), and other regulations might apply that you need to be aware of before choosing the right payment methods for each market.
- Settlement times. At what speed would you like the money in your account? Most businesses aren’t fond of long settlement periods, as they restrict cash flow and your ability to restock your inventory.
Once you’ve considered these factors and any others relevant to your business, you can look into the cost per transaction and decide if it’s worth it to offer as a payment method.
A balance of customer preferences and technical complexity
Having the right payment methods in each country means greater trust the customer will have in your business and will maximize conversion rates. But then, there is a technical side to think about when it comes to reconciliation, fees and more. Only by analyzing each of the factors above can you understand customer expectations and assess whether it’s cost-effective for you to offer a given payment method.
It’s important to note, too, that what your customers want will change over time. Therefore, it’s vital to monitor how consumer’s interests and wants are different from year to year, staying updated on payment trends as a whole, and within your particular industry.
In staying informed, you can constantly optimize your online payment experience, which will boost checkout conversions.
European e-commerce, simplified
Finding the balance between what is affordable and convenient for your business and what your customers prefer for payment methods is a major key to success.
The quickest and most efficient solution may be one you haven’t thought of yet. It’s to find a partner that offers a payment method that can be used in multiple countries. With kevin.’s single integration, for example, you have a solution that’s becoming popular and requested by customers all over europe.
With the rise of account-to-account (A2A) payments, your business needs to take advantage. But you don’t want to have to find an A2A provider in each country you operate in! Instead, contract with a robust solution that will make your life easier, as kevin. does. It helps you reach 350+ million customers, all over Europe.