International businesses should integrate popular payment methods in different, local markets to be competitive globally.

As a business owner, you need to be able to anticipate the needs of your customers to maintain their loyalty and to stay ahead of your competitors. However, this can be a complex exercise as entrepreneurs nowadays cater to different markets worldwide through increasing interconnectivity. In each country or region, customers have a variety of demands and expectations for businesses, depending on their culture, economy and personal preferences.

How can entrepreneurs then accommodate the needs of their customers worldwide?

One way to do this is to make it easier for customers to make a payment. Whether you sell a product or provide a service, your customers can only do business with you when they are able to make a payment on what you are offering. Therefore, it is important for you to learn how your customers in different countries value money and how they prefer to make a payment. As a result, you will be able to make the payment process simpler and easier for them, and expand the demand for your products and services globally.

To serve your customers around the world, here are some payment methods you need to learn:

Cash-based payments

For some countries in the world, cash remains the preferred payment method for transactions. In a study done by Mastercard, it was found that cash comprises 85% of consumer transactions all around the world. The use of cash is particularly high in Indonesia, India, as well as in some countries in Latin America and the Caribbean. This indicates the presence of an informal economy in these regions, as compared to countries where non-cash payments are more common. The prevalence of cash-based payments can also mean that most of the country’s population is unbanked and uncarded.

Online bank transfers

As mentioned above, the transfer of funds from one bank account to another can be accomplished online. The transaction gets completed through the exchange of data, without the need for paper money. Due to the convenience of online bank transfers, it is popular among several countries such as Netherlands, Germany, Sweden, Poland, China and Malaysia. Moreover, there are also payment methods that facilitate online bank transfers such as iDeal in Netherlands, Sofort in Germany, Tenpay in China and Dragonpay in the Philippines.

E-wallets

An e-wallet is an online prepaid account that can be replenished continuously to purchase digital and physical goods as well as services. It can be used to purchase online tickets, groceries and many more without having to disclose credit or debit card information. Paypal is one of the most popular e-wallets, and it is used in different countries for online payments such as U.S., Canada, Israel, and some regions in Europe. Other countries where e-wallets are popular include Russia, France, Brazil and Indonesia.

Mobile payments

Mobile payments involve paying for goods and services through mobile devices, such as a smartphone or a tablet. For countries where a major part of the population is unbanked and uncarded, mobile payments provide an alternative for transferring money, paying bills or purchasing goods. One example of this is in South Africa, where the M-Pesa service allows Africans to make payments or to receive cash using basic feature phones. Other regions where mobile payments are popular include the Middle East, China and the Philippines.

Mobile wallets

A mobile wallet is just like a traditional wallet, except that it is installed on a smartphone. It also serves as a storage for virtual currency, personal identification of the smartphone user, his or her credit or debit card information, as well as loyalty points or promos of certain retailers. To accept payments from mobile wallets, retailers need to install near-field communication (NFC) equipment at their stores. Some examples of mobile wallets include Apple Pay, Samsung Pay and Android Pay. Since these are relatively new, mobile wallets are still not popular as a payment method, but they are available in the U.S., U.K., Australia and South Korea.

Prepaid cards

Prepaid cards are like reloadable credit or debit cards that can be used in stores that accept credit card payments. They can serve as an alternative for credit cards, while allowing people to control their spending. When the fund runs out from prepaid cards, customers can easily replenish the balance in stores or online; without having to undergo credit checks. With these advantages, prepaid cards are gaining popularity in the U.S., Brazil, Germany, Italy, Spain and Turkey.

Cryptocurrencies

Cryptocurrency is basically money that changes hands over the internet. This allows transactions to be completed easily, and make borderless transfer of ownership possible. Similar to money, cryptocurrency can also be used to purchase physical goods or to pay for services, but only within a community; such as an online game or a social network. Cryptocurrency, such as bitcoins, is still not commonly used, making it unregulated and even banned at some countries. Currently, it is illegal to use bitcoins in Vietnam, Bolivia, Iceland, Kyrgyzstan, Ecuador, Russia, and China. Meanwhile, the U.S., Canada, Australia and the European Union allow the use of bitcoins.

Messaging apps

Some messaging apps are going beyond the function of chatting to being able to support e-commerce transactions. One example of a messaging app serving as e-commerce platform is WeChat from China. To make a payment, users connect their bank account or credit card to WeChat to purchase goods, pay for utility bills, transfer money and many more. Over 200 million users in China have linked their debit or credit cards to WeChat. Other messaging apps that are following suit include Line and Viber.

For business owners seeking to expand globally, they need to take into account the popular payment methods in the markets that they are seeking to explore. This can help them gain an edge over their competitors, and quickly build demand for their products and services. As a result, entrepreneurs will be able to grow their businesses, and become competitive worldwide.

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