What is a Cross-Border Payment?
Ecommerce presents businesses with unique opportunities to expand and succeed within their industry. One of these opportunities is the ability to accept cross-border payments and expand into the global marketplace.
Essentially, cross-border payments are payments that are made between a customer and a retailer who are in different countries. For merchants who are operating internationally, it is crucial that they are able to accept payments across all countries that they are targeting in order to help grow their businesses. According to figures, cross-border payments revenues are estimated to reach $1.9 billion by the end of 2020, as reported by McKinsey while a separate study predicts that cross-border ecommerce will make up 20% of all ecommerce by 2022, therefore suggesting that cross border ecommerce is here to stay.
Why Accept Cross-Border Payments
Accepting cross-border payments can open your business up to a range of opportunities. Your ecommerce store becomes instantly more accessible to international consumers when you start accepting cross-border payments, allowing you to reach a larger pool of potential customers which can allow you to make more sales and increase your revenue. Cross-border payment options can also help to improve your customer satisfaction, as customers who may travel often or live between different countries can still access your products and services from wherever they are.
Entering into the international marketplace can also allow for you to diversify your assets which can help your business to more easily withstand unforeseen changes within certain markets or business areas that could otherwise be detrimental to your revenue.