If your business is looking to enter the booming Nigerian market, chances are you’ll meet plenty of competition. Nigeria is in the midst of a massive economic boom which has led to a staggering $6 million in foreign investment over the first three months of the year alone.
With that much congestion in the market, it can be hard to secure a foothold and build some relationships with key stakeholders.
Many of the world’s most successful businesses have been able to conquer competitors by paying with local methods in Nigeria and other emerging markets across the world. This has allowed them to snag the lucrative opportunities and establish the best relationships before competitors can settle in the market.
Local payment methods are a pressure point for consumers that has the potential to lead to abandoned shopping carts and lost market share. In fact, a study showed that over 50% percent of online shoppers have abandoned a transaction because the e-commerce operator failed to offer a preferred payment option.
Understanding prospective consumers payment habits and preferred platforms, especially when it comes to recurring payments, is an essential part of delivering a product or service that resonates with your new-found audience.
Here are three ways that using local payments in Nigeria can benefit your business.
Building Consumer Trust
One quality that businesses and consumers share is that they’re not likely to purchase a product or service if they feel their money is at risk.
Facilitating transactions with a familiar payment method is crucial to gaining the trust and business of consumers and corporations alike. This is especially the case in Nigeria, where many citizens feel the risks of carrying physical cash.
For Nigerians, a payment method that they are familiar with is debit cards. In fact, 95% of all online purchases are made using debit cards, compared to 0.5% of the population using credit cards.
Local payment methods can also provide consumers with the information that they need – in the language that they speak – to encourage them to make a purchase. Trying to enter a foreign market with a foreign payment platform can be confusing for consumers, especially when they can’t understand the process.
With millions of corporations around the world competing for the business of Nigerian consumers, supporting debit payments can be the difference maker for your organization.
By supporting local payment methods that Nigerians are familiar with, businesses can enter the Nigerian market with greater chances of gaining a step on competitors.
Offering Added Convenience
Local payment methods are better for both parties, making it a clear winner for entering high-growth markets like Nigeria. Businesses benefit from gaining the trust of their new audience, while consumers experience added convenience that allows them to seamlessly purchase goods and services with ease.
In many circumstances, businesses that are providing local payment methods can offer an even better service than what the consumers are originally used to.
For instance, Nigerians that aren’t within close proximity to a bank or any other financial institution could benefit from mobile banking if your business supports it, providing customers with added value that will keep them coming back for more.
Building strong relationships is a key component of finding business success in foreign markets like Nigeria, where business culture considers trust and respect to be an essential part of every deal or negotiation.
While understanding a country’s culture can be a daunting task, one way that businesses can learn more about these intricacies is through using local payment methods.
Let’s take Nigeria as an example. Boasting over 173 million mobile subscribers – with further infrastructure development planning to skyrocket this number further – it’s safe to say that Africa’s largest mobile market has embraced the smartphone revolution.
Coupled with the fact that 95% of Nigerians make online purchases using debit cards, it’s safe to say that mobile banking is a familiar payment method that Nigerians would welcome from any foreign business.
Understanding these behaviours can go a long way in gaining the trust of Nigerian consumers, and can even help attract their attention during marketing efforts.
For instance, businesses can use this information for better advertisement placement as well, ensuring that the majority of their budget is directed at mobile ads.
No matter what nation your business enters, these figures can tell a story that is worth listening to.
What’s the Best Way to Support Local Payments in Nigeria?
Any foreign business that is hoping to operate in Nigeria – or anywhere internationally – needs to support local payment methods. Otherwise, they will be leave themselves open to consumers finding suitors elsewhere that will facilitate their needs.
Local payment methods build the trust and respect that is vital to any strong and long-lasting business relationship. They provide a level of convenience that can be considered added value free of charge.
Plus, knowing about local payment methods and purchasing behaviour can help build your understanding and secure your grasp on the market, allowing you to make more strategic decisions.
With this in mind, it’s important that you find the best payments solution for the job. After all, supporting business deals with a faulty payment platform runs the risk of losing your consumers money, and your own.
When it comes to local payments in high-growth emerging markets, there’s no one better suited for the job than Emergent Payments.
Representing over $1.1 trillion in ecommerce payments across the world, we’re the trusted partner of high-performing businesses around the world.
Emergent Payments is led by an expert team of industry professionals with extensive experience in some of the world’s largest digital merchants.
This allows us to provide our clients with value on every purchase by managing the taxes, regulations and other intricacies of emerging markets, enabling them to focus on what’s important: their business.
We understand that the best payments platform is one that is flexible to the changing needs of emerging markets and their consumers. That’s why our payments solution is expertly engineered to be highly intuitive and globally scalable, allowing businesses to outperform competitors in any emerging market that they enter.
Powered by state-of-the-art technology, our intricate payments platform features comprehensive reporting and analytics, customizable dashboards, flexible billing periods and more, empowering your business operations with intelligent payments.
Sign up with Emergent Payments today to discover the power of local payment methods in high-growth emerging markets.