Why We Need an Efficient Payment Network to Connect With Asian Customers
The eCommerce industry is rising rapidly.
According to a report of Cross-Border Magazine, the valuation of global eCommerce sales is expected to increase from $2.02 trillion in 2019 to $2.86 trillion by 2023.
With the eCommerce market, the number of business-to-customer (B2C) cross-border online sales has also grown.
The same report concluded that cross-border eCommerce sales are expected to surge by 20% from $826 billion in 2019 to $994 billion in 2020.
The Challenges of Cross-Border B2C Payments
While the market is growing, the cross-border payments industry is facing multiple issues that hinder the efficiency of businesses connecting with their international customers in Asia.
One of the challenges of the industry is the high cost of cross-border payments. While processors charge hefty fees for online payments, merchants may also face additional costs that are imposed on global transfers and currency exchanges.
In addition to the high fees, the average time (up to five business days) it takes to clear cross-border transactions decreases the competitiveness of businesses that wish to establish their online foothold on the Asian continent. Sluggish transfer times prevents businesses from accessing (a part of) their capital in real-time, which results in decreased growth and may lead to slower customer order procession.
Furthermore, the most preferred payment methods vary by country, which presents another problem for the industry.
For example, in Spain, nearly 100% of the population makes their online payments via credit or debit cards. However, the local payment method Konbini is a popular choice among Japanese customers, which accounts for a sixth of eCommerce payments in the Asian country.
Therefore, businesses will lose out on sales if a cross-border payment network fails to offer them the opportunity to present locally preferred payment methods to their international customers.
The Solution: a Cross-Border Payment Network that Efficiently Connects Businesses With Asian Customers
To facilitate a better connection between businesses and customers of the Asian market, the industry needs an efficient cross-border payment network that tackles its current challenges.
To reach this desired goal, this payment solution has to feature fast cross-border transactions with reasonable fees, while providing a multitude of payment methods that are suited to the unique preferences of Asian customers.
For instance, the UK-based fintech company STICPAY is determined to tackle this problem by connecting firms with Asian customers via its global payment service that features rapid and cost-efficient payments.
By leveraging its connection with Asian banks and offering various payment methods — including credit card payments, UnionPay, cryptocurrency, and local bank transfers -, businesses can suit the needs of their international customers.
Businesses can reduce their fees by utilizing local bank transfers for withdrawals, while the STIC Card allows them instant, real-time access to their funds.
If you want to learn more about STICPAY, we recommend checking out the main page.
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Originally published at https://www.sticpay.com on June 4, 2020.
