Payment Strategy Guide:
Why local payment methods are critical for your market strategy in Europe
If you are a business in Europe or you want to expand to European markets, you need to be aware of the many differences and preferences in various countries and regions because there is no “one-size-fits-all” online payment method that will catch them all.
Download our European Payment Methods Guide to find out which payment methods are popular in Europea and which local and global payment methods can win you distinct markets.
Included:
- European payment trends
- Online payment methods explained (pros and cons for merchants and customers)
- What you need to know about SEPA
- Regional payment preferences
Simply fill out the form to receive your PDF copy
Download your payment guide
48%
of online shoppers want secure payment options when buying from international retailers.*
Trust
Local payment methods elicit trust
Trust is a crucial but not always easy thing to nurture, especially when you’re entering new markets, try to establish your brand or target new audiences.
On average, the checkout or payment page is the number one touchpoint where customers abandon their purchase, either because they are not happy with delivery fees, products are actually out of stock or due to high customs/tax charges. However, 63% of consumers will also abandon a purchase if their preferred payment method isn’t accepted.
Familiarity usually comes with trust. A trusted payment method in your checkout will automatically put customer’s at ease.
Additionally, offering local payment methods (and currencies, language-options, etc.) shows that you have knowledge of the local market which makes the experience more personal. As always, it’s part of a bigger picture but every detail counts to tell your customers the right story.
Convenience
Preferred payment methods drive conversions
Payment preferences are often not just tied to trust and security concerns but also play a part in a smooth payment experience. Many customers prefer local payment options because they are used to them which also means that for them, they are easier to use.
Yes, theoretically, some modern or global payment methods might be easier to use but familiarity is often closely associated with convenience because people are used to something and changing this habit just to buy a product is often not worth the effort (however, this highly depends on your product).
A complicated checkout motivates half of your customers to abandon their shopping with you.
73%
of consumers shop online for convenience. That’s why checkout has to be a smooth transaction.*
Payment rates
Keep an eye on optimal payment rates for higher revenue
Pretty much every payment option comes with a payment rate, e.g. a rate you pay to the payment provider or acquirer per transaction. This rate is often based on different things and varies between providers.
It is therefore recommended to check your own business model, purchase volumes and customer behavior and take all this into account when opting for global or local payments.
For example, if you don’t sell in high volumes but at high prices, you would want a payment option with a fixed fee per transaction. As a retailer with many purchases per day at lower sums, you might profit from a payment option where the fee is a percentage of the overall purchase sum.
Don’t underestimate how much you can save with the right payment setup. These seemingly small numbers can stack up.
The right payment setup
Your Payment Strategy Guide for picking the right payments
In our guide, we will provide you with:
- an overview of current payment trends and usages in Europe,
- advantages and disadvantages of specific payment types (credit cards, digital wallets, etc.)
- different European regions and the local payment methods that will elicit trust and increase checkout conversions for your local or international market strategy.
Download the Payment Strategy Guide for Europe
Find the right payment mix for your market strategy and learn more about different payment options and how they can help you create a smooth checkout experience that drives conversions.