By Dzmitry Mikhaliov
Trade is becoming increasingly global and challenging to navigate through the ever-growing global regulatory complexities, capital controls, and the necessity to reach emerging markets. This is especially the case for digital goods merchants, with products not restricted by borders, such as gaming, eLearning courses, apps, online games, SaaS, etc.
The global eCommerce landscape is booming with opportunities for digital businesses to grow revenue and market share. According to Grand View Research, the global eCommerce market size is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027.
Imagine an EdTech company from the U.S. (e.g., Masterclass), Europe (e.g., Babbel), or Asia (e.g., VIPKid) that sells their courses and issues pay outs to tutors worldwide. Where it becomes complicated for merchants to expand, pay, and get paid are the large, hard-to-reach regions such as APAC or Latin America. What are their options for collecting card payments?
There are three possible scenarios:
At a macro level, the pros, and cons of these three alternatives can be summarized below:
There are many benefits to local acquiring, including an increase in conversion rates and minimizing costs associated with FX fees for the end customer. Furthermore, research from PYMNTS.com indicates an increase in purchases when given the opportunity to use their preferred payment methods: for example, local card networks are highly popular in some markets, and offering them can make a difference for a business, e.g. by collecting payments via RuPay in India. Additionally:
The standardization of the settlement cycle across all countries and payment methods leads to faster and more streamlined receipt of settlement payout, substantially simplifying reconciliation challenges that businesses would have faced otherwise.
Nium Checkout is your solution to unlocking better payments experiences for customers and accelerated market access so that you can scale your business faster. Local acquiring with Nium boosts customer acquisition, enables local card acceptance to accommodate more ways of payments, simplifies reconciliation, and requires one single integration to access multiple markets- an easy, fast, and secure way to continue driving your sales growth with seamless payments.
If you would like more information on how our solution can help your business, connect with me to learn more.
About Dzmitry Mikhaliov
Based in Dubai, UAE, Dzmitry is the Director of Business Development for Nium Checkout. With a breadth of experience in financial technology and services on both the operating and investing side, he leads Nium Checkout’s go-to-market activities globally.