An unstoppable e-commerce train can find itself delayed at border crossings, so to speak, expanding into new regions without first ensuring that their payment stack is also ready to go.
Cross-border expansion is a prime growth driver for e-commerce merchants, with the global B2C e-commerce market expected to grow at a compound annual growth rate (CAGR) of 9.7% through 2028 to achieve a valuation of $ 7,700 billion. Most of the traders want to participate in this action online.
However, the obstacles encountered in international expansion can involve steep drops and chargebacks as well as fraud, all compelling reasons to revisit its current technology stack.
According to PYMNTS ‘new Time Acceleration to New Markets playbook, a Quickly collaboration, âHarnessing this potential for global growth can be trickier than online merchants realize. Global merchants need to be able to not only accept the payment methods their local customers expect, but also ensure that the capabilities they add to their payment stacks reduce costs and improve the efficiency of their businesses. operations on the international scene. Orchestration of payments is particularly well suited to do just that.
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Benefits of a flexible technology stack
Looking at B2C Commerce’s growth projections, cross-border expansion makes more sense than ever for e-commerce sites.
As they prepare to enter new markets, the Playbook notes that âEcommerce businesses need to be able to easily add and remove functionality to and from their payment stacks to improve efficiency, but it It is difficult to know which new features will generate a sufficient return on investment. (ROI) before committing to a new solution.
As Spreedly’s account manager, Luke Evans, told PYMNTS, âAn incredibly powerful tool is payment orchestration. What payments professionals are finding is that many aspects of the business – UX, mobile devices, apps, etc. – are all capable of adapting to the needs of a new region. While adapting the payment service offering to support the improvement of authorization rates, the reduction of fraud [and] security is a much more difficult challenge.
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Reduce friction, the smart way
With recent research from PYMNTS showing that international ecommerce merchants accept an average of 6.8 payment types, expanding merchants need to be similarly equipped to compete.
But payment choice is part of streamlining cross-border optimization operations, and back-end systems play an invisible, though indispensable, role in smoothing the way forward.
To reduce costs, increase revenue, boost conversion, and cut costly drops, the Playbook notes that “merchants can ease these payment frictions by using solutions such as smart routing, which enables e-commerce merchants to Automatically route transactions through the available payment gateway most likely to successfully complete a transaction.
As the Playbook concludes, “Payment orchestration layers that leverage APIs can facilitate faster, smoother payment integrations and make it easier for global e-commerce merchants to add the payment capabilities they need. to develop in new markets “.
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