Wednesday, December 28, 2016
Snapshot of Global Payment Methods
The world has become a far smaller place since the days when tourists would have
to stock up on local currency or convince a restaurant they actually did in fact
accept Travellers Cheques. Nowadays, the onus is on the merchant to do things
the consumer’s way - and this extends to accepting payments.
There is a huge opportunity for merchants in the UK to make themselves more accessible to the global consumer; if they don’t they can be sure their competitors will be more than happy to do so. The UK is the eighth largest international tourist destination, with tourism being responsible for £126.9bn (9.0%) of UK GDP. So from Diner Card to Alipay, MasterCard to iDEAL, supporting a raft of different options for visitors is essential to make the most of this opportunity.
So, what are some of the different global payment methods available and why should retailers care about them?
Visa & MasterCard
The bread and butter of non-cash payments. Although there are a number of lesser known options emerging, retailers should never forget about ensuring the basics. Supporting these is essential for any merchant.
Mobile payments
One of the most popular growing forms of payment has been buoyed by the launch of Apple Pay and Samsung Pay in different global locations, as well as other heavy-hitters in the tech world. Consumers are growing ever more comfortable with contactless payments, so they’re now open to making their mobile phones their ‘go to’ for more than just communication – but paying too. Ensuring mobile payments are accepted will go a long way when winning over the tech-savvy younger tourist.
Diners Club & Discover
A hugely popular method of payment, particularly with North American consumers. What’s more, its uptake is growing in other markets too. By supporting these, merchants will be addressing a substantial part of an affluent market.
Alipay
The biggest payment method you have never heard of. Alipay has the biggest market share in China, with over 300 million users. Over 200,000 Chinese tourists alone visited the UK in the first 9 months of 2015, so the benefits of offering Alipay are huge for merchants wishing to capture these consumers. And, with the UK changing its visa rules for Chinese tourists, we’re likely to see more and more Chinese tourists looking to book hotels and tickets for attractions in the country this year.
Union Pay
The only domestic bank card organisation in China, used in 141 countries and regions across the world, making it the second largest-payment network by value of transactions processed.
iDEAL
The most popular online payment method in the Netherlands. Introduced in 2005, it allows customers to buy on the internet using direct online transfers from their bank account. For online retailers looking to crack the Dutch market, this is a must-have.
JCB
Very big in certain Asian markets including Korea and Japan, and it’s growing in popularity in the U.S as well. Accepting JCB payments would provide a significant advantage to retailers and other merchants in popular UK tourist hotspots like London.
Keeping everyone happy
We live in a global marketplace and this should be at the front of every merchant’s mind. Competition is fiercer than ever and as such they should take whatever action might give them a competitive edge. This requires consideration of each market’s payment culture and meeting those needs as you would for your domestic customers. Whether it is supporting Discover/Diner cards for US tourists or Alipay for Chinese consumers online, retailers will need to work with partners that support the widest range of payment methods or risk getting left behind.
There is a huge opportunity for merchants in the UK to make themselves more accessible to the global consumer; if they don’t they can be sure their competitors will be more than happy to do so. The UK is the eighth largest international tourist destination, with tourism being responsible for £126.9bn (9.0%) of UK GDP. So from Diner Card to Alipay, MasterCard to iDEAL, supporting a raft of different options for visitors is essential to make the most of this opportunity.
So, what are some of the different global payment methods available and why should retailers care about them?
Visa & MasterCard
The bread and butter of non-cash payments. Although there are a number of lesser known options emerging, retailers should never forget about ensuring the basics. Supporting these is essential for any merchant.
Mobile payments
One of the most popular growing forms of payment has been buoyed by the launch of Apple Pay and Samsung Pay in different global locations, as well as other heavy-hitters in the tech world. Consumers are growing ever more comfortable with contactless payments, so they’re now open to making their mobile phones their ‘go to’ for more than just communication – but paying too. Ensuring mobile payments are accepted will go a long way when winning over the tech-savvy younger tourist.
Diners Club & Discover
A hugely popular method of payment, particularly with North American consumers. What’s more, its uptake is growing in other markets too. By supporting these, merchants will be addressing a substantial part of an affluent market.
Alipay
The biggest payment method you have never heard of. Alipay has the biggest market share in China, with over 300 million users. Over 200,000 Chinese tourists alone visited the UK in the first 9 months of 2015, so the benefits of offering Alipay are huge for merchants wishing to capture these consumers. And, with the UK changing its visa rules for Chinese tourists, we’re likely to see more and more Chinese tourists looking to book hotels and tickets for attractions in the country this year.
Union Pay
The only domestic bank card organisation in China, used in 141 countries and regions across the world, making it the second largest-payment network by value of transactions processed.
iDEAL
The most popular online payment method in the Netherlands. Introduced in 2005, it allows customers to buy on the internet using direct online transfers from their bank account. For online retailers looking to crack the Dutch market, this is a must-have.
JCB
Very big in certain Asian markets including Korea and Japan, and it’s growing in popularity in the U.S as well. Accepting JCB payments would provide a significant advantage to retailers and other merchants in popular UK tourist hotspots like London.
Keeping everyone happy
We live in a global marketplace and this should be at the front of every merchant’s mind. Competition is fiercer than ever and as such they should take whatever action might give them a competitive edge. This requires consideration of each market’s payment culture and meeting those needs as you would for your domestic customers. Whether it is supporting Discover/Diner cards for US tourists or Alipay for Chinese consumers online, retailers will need to work with partners that support the widest range of payment methods or risk getting left behind.
Sunday, December 18, 2016
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