As the world we live in along with the global economy seeks to become more interconnection than ever. It has also driven business to expand internationally in order to drive growth. Aside from different currency’s and different purchasing behaviors, accepting cross-border payments can come extremely complicated.
It is extremely easy to underestimate the complexity involved in accepting cross-border payments. Because there isn’t a single uniformed system that is capable of routing money across borders. Instead, banks are linked through their own unique systems. This is not only antiquated but extremely slow, inefficient and very costly.
Here at Yuansfer, we aim to eliminate these challenges by creating friction-free solutions. We want their experience to be as seamless as their domestic payment providers. Rather or not you’re looking to expand your business by accepting global payments with Yuansfer or a business already accepting global payments. You should consider the following tips to optimize your business:
Understand Your Customer.
First things first, when you’re creating your customer-facing systems make sure that they’re easy to use and extremely straight forward. Before you send out your invoices, making sure you understand their language preferences, as it can vary tremendously.
Often overlooked, you should fully understand the country’s currency preferences before conducting business in said country. do. For examples, in China and Malaysia, most customers welcome invoices billed in U.S. dollars. Because their local currency is extremely regulated. While in other countries across the world might want to be billed in their own currencies.
Keep in mind that if you bill your clients in U.S dollars, customers will have to pay it back in U.S. Dollars. This can quickly become a complicated process depending on which region or countries you’re in. To eliminate this issue, you should consider allowing merchants to pay in various currencies by using Yuansfer. UtilizingYuansfer serivces will aslo allow you to save in exchange rates or fees.
Give Customer Options.
People innately enjoy having options. Rather if don’t plan on using all of them, they provide a sense creditability and show that you understand the customers’ needs. You should present the preferred and convenient payment options for those regions. Though globally, credit cards have remained the preferred payment due to their convenience. However, outside of the United States, they can be more expensive to use than cash. And the global credit cards giant Visa, Mastercard, and American Express, are not prominent in some countries. For example, in China consumers prefer to use UnionPay the preferred credit card company in China.
When looking to expand into global markets you can’t avoid the quickly emerging digital wallets services. These digital wallets platforms are convenient than credits cards and more secure. This is quickly becoming the preferred way to pay in emerging countries like Brazil and China. In fact, WeChat and Alipay have driven China to become a predominately cashless economy.
Follow The Legalities.
Remember no two countries are the same. And doing business in various countries comes with numerous hurdles. As, each country has its own laws, regulations and government sanctions that govern cross-border payments. Often, the countries that’s are more progressive with their acceptance of the more complex the legal requirements are.
For instance, countries like China and India there are heavy restrictions on the amount of money that can leave the country. Where those funds are coming from is just as important as the amount sent. In fact, you might need to submit a special regulatory or bank forms to be able to make and receive payments.
Privacy and data security regulations differ from country to country. Unlike in the United States, where the payment card industry data security standard (PCI DSS) to protect the cardholder. So, creating the right infrastructure is extremely important because if not you could be putting your clients at risk.
Mange Cash Flow.
Ultimately, unpredictable and obsolete in modern businesses. International bank wire transaction leaves a high room for error and days to reach your account. It is not unlike that you will not even know if when an invoice has been paid. In fact, if the identifies are not correct or the billable amount doesn’t exactly match the invoice, you’ll have to manually reconcile payments.
Consider getting a global payment solution provider like Yuansfer. That can provide appropriate invoicing and payment solution while ensuring the right fees and identifiers get included in your payments. Yuansfer also allows you to track your payments so you know when your money is on the way. Which can be extremely important for small or local business who might have a lot of cash on hand.
Create Realistic Goals.
Although, the majority of brands expand into foreign markets to grow their business. You should really understand the market and the consumers that you’re looking to target. As customer will still expect the same seamless experience that they get from their domestic purchases.
Before going into a foreign market, companies should really seek out services from global payment solutions services like Yuansfer. These services will that have a better understand the complexities of cross-border commerce and the purchasing behaviors of various markets. Having a global payment solution will also making collecting and send out invoices frictionless.