The payment landscape is unpredictable, but technology allows businesses to constantly improve their offerings. However, this also means that customers expect more and want an enhanced buying experience. That’s why now more than ever, business leaders should be evaluating their payment stack and assessing whether it’s serving their business’ growth. This is especially true if a company is planning to expand into new markets, which requires catering to local payment preferences.

If you’re struggling to keep pace with regional payment trends and decipher large amounts of payment data, or you are looking to expand into new markets, it’s time to look at your payment stack. It’s all too common for businesses to remain stuck in their ways but that can adversely affect ROI. Here are three signs you should look out for when considering switching providers upon entering new geographies.

Difficulty in obtaining and comprehending payment data

Payments can provide your business with a wealth of useful data and insights, and this data will ultimately help you increase sales and reduce costs. However, the sheer magnitude of information that comes from payments can make insight-mining somewhat overwhelming.

Given that there are multiple data sources, currencies, and conversion rates involved, understanding this data can take a fair amount of valuable time. However, collaborating with the right payment partner can empower your company with the resources required to shorten the payment reconciliation process while also having the unified insights needed to make business decisions.

Struggling to keep pace with local payment trends

When scaling a business, you are looking at a unique set of opportunities. You may also face several challenges, especially when competing with businesses that have a home-ground advantage. Remaining competitive goes beyond language and currency adjustments. Businesses entering a new market must tailor payment methods to suit local preferences.

While some global payment processors may support international sales through debit and credit cards, more and more transactions globally are conducted through alternative regional payment methods. This can include bank transfers, cash vouchers, digital wallets, and various online banking methods, depending on the region. For example, a report by Statista revealed that consumers in the APAC region tend to use digital wallets. In addition to this, completing cross-border payments comes with a transaction fee, which can amount to up to 1% or more of the transaction value in addition to possible hidden charges for your shopper. As a result, many retailers are routing transactions through local banks to protect their profits, though on average, businesses operating globally rely on five different payment gateways to process cross-border transactions through local banks.

However, the expenses associated with developing and maintaining these relationships, as well as integrating additional services like digital wallets and fraud prevention, can offset the benefits of processing payments locally. Therefore, selecting a payment provider with access to local banks and comprehensive features like fraud prevention and support for alternative payment methods through a single unified interface can offer significant time and cost savings. Ultimately, partnering with a payment provider that combines global expertise with local insights will benefit merchants seeking to expand their business in the long-term.

Payment strategy is not boosting sales

Our research shows that nearly half of businesses experience an authorisation rate of only 70%, leaving 30% of transactions being declined. Apart from incurring processing fees, this poses a significant setback to sales and adversely affects the overall customer experience - impacting revenue generation.

Through payment orchestration, businesses can mitigate losses and bolster sales by employing intelligent payment routing. This system directs payments to the bank most likely to approve the transaction in real-time, considering variables such as currency, card issuer, local acquirer, and merchant category code. By routing transactions through a global network of banks, businesses can not only reduce cross-border fees and mitigate foreign exchange rates but also increase authorisation rates.

Business leaders should carefully select their payment partner, as the right one can reduce technical debt, streamline operations, and optimise your payment stack. This helps tackle large amounts of data, cater to the needs of consumers region by region, and ultimately, boost sales.

Remaining competitive in multiple geographies is no easy task, but it’s made harder when you aren't operating efficiently - this is your sign to pivot your payment stack to drive efficiency and increase profitability.