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BizReport : Ecommerce : August 12, 2021

How to simplify payments without sacrificing experience

From checking out inventory to looking for new coupons and deals, shoppers are looking for convenience from their favorite retailers. That includes the checkout process, which has become even more important as more shoppers have moved their shopping online. We asked a digital expert how brands can improve their payment options without sacrificing the customer experience.

by Kristina Knight

"Customers want to be able to check out in the way they find most convenient. Amazon figured out one click pay some time ago, now D2C brands have been able to scale this competitive oat by utilizing ApplePay and GooglePay," said Dave Nicholls, Global Head of eCommerce, OFX. "For any brand looking to sell outside of marketplace infrastructure these payment methods are a must. In addition, cross border commerce has become more important than ever before. Consumers are happy to shop with brands outside of their home country, but only if the process and payment methods are familiar, so having these local payment options available for your main markets is essential."

First, Nicholls says, brands must simplify the experience.

"Working with a gateway partner that can offer acquiring capability for consumers to be able to pay how they want, in all the main markets the merchant or brands sell in, is crucial. Offering Apple and Google Pay, Buy Now Pay Later options such as AfterPay, Zip or Affirm, or local payment methods in Europe such as Sofort (Germany) or Ideal (Netherlands) is essential to make sure you convert as much as possible at checkout," said Nicholls.

Second, brands must create operational flexibility.

"The second part of simplifying your payments is managing all the revenues that you are collecting around the world. Most gateway partners will default to sending you back your home currency. On its face this is simple, but it can increase cost and complexity. Currency conversion fees of up to 3% are often hidden in the exchange, and there can be further conversion costs and time delays if you need to send money to pay taxes or suppliers. To improve this part of your operations, a brand/merchant can open collection accounts in the country where they sell through companies like OFX. These accounts allow merchants to receive the foreign currency, convert at much better rates, and pay local suppliers or taxes without conversion costs," said Nicholls.

Tags: ecommerce, ecommerce payment tips, ecommerce payments, ecommerce trends, m:commerce, m:commerce payment tips, mobile marketing, OFX

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