How having Local Payment Methods in your Payment Gateway Helps Increase Conversions for your eCommerce Business

Having a variety of local payment methods in your payment gateway is generally good business sense, since it can help prevent chargebacks and other potential setbacks when compared to relying on only a single local payment method. Another benefit of having multiple local payment methods in your payment gateway is that it also goes a long way towards increasing conversion rates for your eCommerce business.

Here’s how they make it possible to do so, and how to further increase your conversion rates.

What Are Alternative Payment Methods (APMs)?

APMs simply refer to having other local payment methods at your disposal as opposed to sticking to just one. Even if your eCommerce business is in a market that is predominantly one specific local payment method over any others, such as QR code payments in Singapore, it is best to have a few other APMs on hand in the event some complications arise from that payment method like chargebacks.

How it Helps Increase Conversions

A little goes a long way when it comes to improving conversion rates–something your eCommerce business definitely needs since they are one of the most useful tools in measuring your return on investment (ROI)¹. When it comes to APMs, it helps to improve conversion rates by way of reducing cart abandonment, establishing brand credibility, and localising operations.

Here’s how each of these apply:

• Cart Abandonment Reduction: A bitter fact of any kind of business is that cart abandonment can never be truly prevented. This is especially true when considering that the average cart abandonment rate across all industries inclusive of eCommerce is 69.57%². Having APMs helps reduce cart abandonment by increasing the probability of providing payment options that your clients prefer, since clients both new and recurring are more likely to conclude a deal or transaction if they’re able to do so with a payment method they’re familiar with.
• Establishing Brand Credibility: Offering an array of APMs also helps build up trust and credibility in your brand as it will create the perception that your business is serious about entering any market of choice. It also shows that you have taken the extra mile in localising your operations in the region by keeping up to date with local market trends.
• Localisation of Operations: By offering a selection of APMs, your eCommerce business will find greater success in the localisation of operations since it is better equipped to deal with clientele both local and international. It also comes with the added benefit of shielding clients from FX fluctuations since with local currencies and payment methods on the table, clients can afford a greater degree of certainty about their cash flow on hand.
  

Now that you are familiar with how having APMs in your payment gateway helps with increasing conversions for your eCommerce business, you can go ahead and seek out APMs to adopt as your own. If you’re feeling stumped about it, why not skip the hassle and give Omoney a try? Gain access to a wide selection of over 175 markets with only a single account, and easily localise in more than 80 of them!

Sources

1. Ecommerce CRO: Conversion Rate Optimization Tips + Tricks (bigcommerce.com)
2. Shopping cart abandonment rate by industry 2022 | Statista