In order to orient a business to the external market, at the beginning it is necessary to take a leading position in a particular industry at the local level. Further, it is necessary to collect detailed information about such a business abroad, to study in detail the potential consumer group, to explore the market niche in this area and know in the face of its competitors in order to develop an effective business strategy. Think that’s all? It remains only to take the funds and open offices abroad? Something is still missing ..
As a result of international trade, turnover often increases significantly and business acquires more opportunities. But, all the details of the difficult way for the company to reach the international level are not always clear. One of the decisive issues is the definition with the provided payment method. What is the preferred payment method, intending to take the business beyond the national boundaries?
Let’s look at some international directions in more detail.
One of the most attractive markets in the world is North America. Being the largest retail e-commerce market, it is considered a tasty morsel for entrepreneurs.
In order to occupy a stable position in this direction, it will be sufficient to work only with various credit cards and PayPal. Aiming more, you need to connect the possibility of mobile payments, as well as payment by debit card. Among the methods of mobile payments in the regions of North America such as Apple Pay, Android Pay and Samsung Pay are common.
As for the US, consumers here tend to pay with cards and the only alternative is PayPal. If you ask which cards dominate this market, the answer is simple – these are VISA and MasterCard cards. There are fewer American Express cardholders, PayPal and Discover.
Recently, many US residents are delighted with the opportunities of mobile payments, especially in the field of outlets. Due to its convenience and ease of use, this payment method has become very common.
But still, credit / debit cards will not replace anything. Buyers in this region are quite active lifestyle, so the availability of payments for them is extremely important. With the ease of applying credit / debit cards, such a condition has become feasible.
What can you say about the Canadian region?
Another attractive business market is in Canada, which is considered the leader in cross-border retail e-commerce. Often, many businesses in Canada find their partners and customers very close. They support cooperation with the United States. Therefore, the payment preferences of the two regions are somewhat similar. For example, in Canada, credit cards remain the dominant method, followed by PayPal and Interac. The latter is a well-known local online banking system that provides Canadians with the opportunity to shop online and in local stores, send money or withdraw cash at points of sale throughout Canada.
As in the United States, the Canadian market accepts several payment methods, including Visa, MasterCard, Interac and American Express.
On the other hand, the two market data are not completely identical. A noticeable difference lies in consumer preferences regarding the choice of credit or debit cards. It is more common for Canadians to make payments via credit cards, whereas in the US with two cards, the choice will always be in favor of debit cards.
With regard to trends in mobile technology, the majority, both Canadians and Americans, are more interested in mobile applications and services than in mobile payments. But the situation is prone to change, because the development of mobile innovations does not stand still and, as a result, lays the foundation for the future direction of business.
Some more facts on weapons
The consumer audience of the North American region can be said to be open to transnational e-commerce. The most important thing for them is the safety and ease of shopping. In addition, North American buyers rate all sorts of bonuses and discounts as the most attractive rewards. In spite of everything, they use the services of foreign merchants, even using the Interac debit system, in the case of Canada. A variety of companies are also willing to cooperate and mutually beneficial deals.
Getting started with the North American market is fairly easy if you are aware of the preferences of its customers and merchants. Yet, the payment industry is constantly under the influence of technological innovation and generational differences. Therefore, it is important to use the latest technologies that will only strengthen the position of the business among its competitors.