In our global world, we’re seeing more and more domestic businesses looking overseas for lucrative opportunities that can help them grow profits and cut expenses. The US imported $266.5 billion in goods and services from the international market in 2018 alone.
Similarly, emerging markets are fighting to attract foreign investment in an effort to continue fuelling their rapid economic climb. Japan skyrocketed their exports in 2017 with $698.1 billion in goods and services — a blistering 8.2% increase from the previous year — driving them higher up the global economic rankings.
While there is plenty to gain for domestic businesses, stiff competition remains an obstacle for many that are looking to get ahead by entering the global market. With a bountiful selection of foreign suitors, companies in emerging markets have the luxury of weighing their options carefully and choosing the deal that best suits their needs.
To seal the deal in emerging markets, domestic companies will need to offer intangibles that sway the vote in their favor.
Here are five reasons how paying with local payment methods can help domestic businesses and their overseas partners boost profits.
In both the global and domestic market, nothing is more important to businesses than time, especially when it comes to small businesses who are often juggling multiple roles in their company to stay afloat. Convenience is a valuable commodity that won’t go unnoticed or unappreciated.
Paying with local payment methods allows businesses in emerging markets to receive their money without jumping through bureaucratic hoops or wasting precious time.
Globalization has made it easier than ever for businesses to scan the market for someone that is willing to sell or buy goods in the currency of their choice. As a result, saving businesses time by meeting their payments needs can be a valuable bargaining chip.
Foreign exchange remains an annoying thorn in the side of the international business. While the business receiving the payment is the one that officially exchanges the currency, the sender will likely suffer from a poorer deal as a result.
By paying with local payment methods, you set yourself apart from the competition as the convenient option. Plus, this favor is often reciprocated in the form of preferred rates on any goods or services that are being purchased.
Businesses that are expanding overseas are likely already getting a bargain to begin with. By trading with local payment methods, domestic businesses win more deals and earn more profits on every purchase, while companies in emerging markets save money on marked-up foreign exchange rates.
When it comes to business, no two countries are truly the same. While American businesses tend to gravitate towards the profit margins and risks associated with any given deal, companies in Asia and South America lean on trust and the continued growth of relationships.
Knowing this can pay dividends for businesses that are expanding overseas, helping them differentiate themselves from the competition and gain traction quicker on foreign soil.
Paying with local payment methods is not only a great strategy for saving time and cutting costs, but it can also gain the favor necessary to secure lucrative deals in the future.
Plus, making business friends can result in advice on potential market expansions, information on streamlining regulatory requirements, preferred service from business connections and so much more.
For companies and customers alike, buying goods and services using a familiar method increases the likelihood that they make the purchase.
If a Chinese importer wanted to purchase goods from an American store but noticed they only sent and received money using Paypal, the importer would likely find someone else to do business with.
Money is important for both customers and clients. As a result, many prefer to do business in ways that they already know. This helps assure the security of the transaction while providing individuals with a platform that they know is void of potential hidden fees.
Expand Target Market
Most businesses that drive their operations into the global market are on the hunt for more clients to sell their products to or buy their products from. After all, this is one of the greatest benefits that globalization has presented businesses by shrinking borders.
Although entering the international market comes with logistical costs, it is often considered worthwhile considering the gain in potential customers.
However, many businesses and consumers don’t have access to international payment methods. India, the second most populous country in the world, relies primarily on debit cards — 846.7 million in 2018 — for purchases. However, the majority of these Indian debit cards are not activated for international purchases.
Expanding business operations to India and its 1.3 billion citizens without the ability to facilitate their local payment methods takes a serious cut into your profitability.
While the competition is having their target market, businesses can adopt local payment methods to widen their business potential wherever they expand.
How to Facilitate Local Payment Methods
Businesses that are interested in providing local payment methods to their clients can trust Emergent Payments to help them beat the competition.
Representing $1.1 trillion in e-commerce payments, Emergent Payments is the trusted payments partner in over 70 emerging and high-growth markets around the world.
We provide a digital payments solution powered by cutting-edge technology that delivers reliability and security while reducing redundancy. Our platform features state-of-the-art multi-layered security, including HMAC authentication, client-side encryption and more.
Plus, we’ve engineered our payments platform to be highly scalable and simple to integrate while offering total global payment capabilities. This allows us to deliver advanced reporting and analytics, customized dashboards that fit your needs, flexible billing periods and more.
Emergent Payments can handle the entire checkout flow. Once you open the hosted paywall and customize how it looks, your customers can simply follow the instructions on-screen as their guided through the payment process. With real-time visibility, you can have eyes on every transaction that takes place.
Best of all, if you want to host your own payment flow, we can take care of the sensitive data while you run operations. Since we’re handling the information, you don’t have to worry about the compliance requirements.
We know emerging markets better than anyone. Let us handle the tax, remittance, compliance and fraud management so you can focus on what matters most: your customers.
Our expert team has proven global payments experience at the world’s biggest companies, allowing us to provide you with the best payment methods for each market. Whether you need a platform that supports one payment or a thousand, we have you covered from start to finish.
Sign up today for local payments that help you grow your business in emerging and high-growing markets around the world.