Exploring Local Payment Methods With Bivial

What do local payment methods imply?

Local payment methods are payment options restricted to specific geographic regions. These methods address the needs of customers in those regions, which often differ from standard payment systems used in other countries.

Local methods can include bank transfers, digital wallets, Buy Now Pay Later (BNPL), and other options.

Why do you need local payment methods?

Local methods of payment give you a competitive advantage in specific countries. For example, if your business expands to a new country, you need a local payment method that allows customers to purchase your products seamlessly.

Your typical payment method may not be accepted in that country, and even if it is, local customers may not be familiar with it. Instead, you should offer a local method for customers to make seamless online payments.

Businesses also need local methods if they fall into these categories:

• Low conversion rates. If you’ve invested much in marketing campaigns but see subpar results, payments may be the problem. Customers may love your product but not trust the available payment methods. You can solve this problem by integrating a local method into your platform to build trust.
• Low return on UX investment. You may have streamlined your payment checkout process, yet see low sales. The problem is likely that customers do not like the payment methods available on your website. You can solve this problem by integrating a locally popular method.
• A particular channel is underperforming. Merchants can promote their services via multiple channels and notice that specific channels are underperforming. The problem could be that customers originating from that channel don’t trust the available payment methods on your site. Once again, you can solve this problem by enabling local payment methods.

Local payment methods classification

Digital wallets

Digital wallets are mobile apps that securely store users’ funds and data. Many countries have popular digital wallets that are used locally but not internationally, such as TNG eWallet in Malaysia. These wallets store users’ payment data and allow them to pay for your services with a few clicks. They are trusted solutions that you should integrate to win local customers.

Bank transfers

Many countries utilise ubiquitous bank transfer systems that settle instantly, and these systems are widely trusted by locals. These systems involve creating a domestic bank account to receive payments quickly from local customers. Integrating bank transfer payments enables customers in these countries to pay you without hassles.

Credit cards

Credit cards are the preferred method of payment in many countries. They’re trusted, convenient, and eliminate the need to carry cash. Credit cards are closely integrated into the financial system in these countries, so it’s necessary to enable this option to win local customers.

Peer-to-peer (P2P) payment apps

Peer-to-peer (P2P) wallet apps are the go-to payment methods in some regions. They simplify the process of sending money and are very convenient to use. Hence, you need to integrate these P2P apps to enable local customers to pay you seamlessly.

Cash on delivery

In some countries, usually those lacking a robust digital payments infrastructure, payment on delivery is a popular option for online retailers. This option is widely used for higher-value purchases that locals are unwilling to pay for in advance, or by customers who lack access to digital banking services.

Buy Now, Pay Later (BNPL)

As the name implies, BNPL (Buy Now, Pay Later) offers customers the option to pay for a product in monthly installments. The BNPL company will give you the full price and collect the installments from buyers, so you shouldn’t worry about pursuing customers for payments.

Although relatively new, BNPL has become a popular option in many regions due to its ease of use and flexibility. Your customers can use this method to pay online without stress.

Benefits of offering local payment methods

Competitiveness

Without local methods, customers will struggle to purchase your services, leading to lower sales. Integrating these methods gives them a reason to choose your product over many other alternatives. Local payments help you compete better with other local businesses.

Trust

Customers across different regions have higher trust in businesses that integrate local payment methods. They’re more likely to choose products from such businesses and stick with them in the long term.

Higher conversion rates

A lack of local payment methods often makes customers abandon their carts after visiting your store through a marketing campaign. Integrating these methods resolves this issue and leads to higher conversion rates for your marketing campaigns.

Enhanced customer convenience

Customers find it easier to pay with a method they are familiar with. Integrating these methods on your website gives customers a smoother checkout experience that they’ll appreciate.

Start offering local payment methods with Bivial

Bivial helps businesses offer different methods of payment across various regions. From Apple Pay to Pix, SEPA Direct Debit, WeChat Pay, and many more, you can offer diverse options to build customer trust and gain a competitive advantage.

Bivial is the perfect partner to scale your business across different regions, with tailored payment options for each region you expand to. Choose Bivial today to enjoy a smooth expansion.