The cashless transaction was a long-awaited game in the Indian market. However, individuals thinking of working beyond the domestic boundaries hesitated to begin their game once considering the payment facilities involved. But today, according to the data published with RBI, India receives the highest amount of inbound cross-border remittances across the globe. The reports confirm that India accounts for 15% of the global share in inbound cross-border transactions out of the total remittances.
How and when it started is essential for us to look at?
The rise in the connection between the two economies for trade, education, and freelancing gave birth to cross-border payments. Overall, the ecosystem involved B2B, B2P, P2B, and P2P merchants. The cost and speed of delivery improved, which is why people preferred and accepted cross-border payment service providers. Following China and Mexico, India received an inward remittance of USD 83 billion, mainly from the USA and the Middle East.
India leads cross-border remittance flows at a moderate cost despite the weak availability of channels and operators. This is why it is expected that the future of eCommerce relies on cross-border payments.
Let us understand in detail why eCommerce relies on cross border payment service providers.
Table of Content.
- What is a cross-border payment service?
- How do cross border payment service providers drive eCommerce?
- The future of eCommerce relies on cross-border payment service providers.
- eCommerce Sellers: Essentials of Cross Border Payments Service Providers
- PingPong: cost-effective cross-border payment service provider.
- Is PingPong-the payment service provider safe for eCommerce?
- What should eCommerce sellers see when selecting a payment service provider?
What is a cross border payment service?
Cross-border payment services refer to the transactions where the payer and the payee resided in two different countries. These types of currency transfers can be related to retailers, ecommerce sellers, freelancers, and businesses. Some of the factors that have contributed to the increase in cross-border payment include:
- Rise in the use of smartphones and online purchase.
- The extensive boom in the ecommerce business.
- Sudden rise in the number of freelancers working with international clients.
In common, international payment takes more than a day because it involves money transfer and currency conversion. Still, the online mode of payment has pushed businesses and payments to a smoother platform. Individuals have gained confidence in international payment transactions because now it is faster and easier. The chart shows the money inflow in India through cross border transactions.
Source: World Bank
Let us dive deep into how cross-border payments boost eCommerce.
How do cross-border payment service providers drive eCommerce?
To push your business beyond the domestic boundaries, you need a payment processor that handles the transactions elegantly. Therefore, before you think of selling abroad, it is wise that you consider different cross-border payment options and evaluate things.
Here are the ways in which cross-border payment processors supports eCommerce:
→ Cross Border Payment Service Providers takes less time:
Compared to conventional methods, the cross border payment service providers are faster than usual. These boost the speed of payment and take less time than the traditional ways of methods.
Often for international payments, it takes 2 days in currency exchange and transfer of funds. But in traditional methods, it takes more extended hours, like 4-8 business days, for the complete transaction. This made business lucrative for ecommerce companies and sellers. In addition, the companies can sell more and secure their payments via secure cross border payment solution providers.
→ Automated Processes:
Payment service providers automate the processes for eCommerce sellers. Now, the currency exchange and funds transfer take less time than the traditional methods. In addition, the banking correspondents and the interconnected banking facilities have lifted the payment processing barriers.
The users will just have to create their login accounts and enter the details like currency to accept the money. If, as an ecommerce seller, you deal in more than one currency, you will just have to enter the corresponding details. This is how the international payment service providers have automated the payment system.
It saves a lot of time because, unlike traditional methods, nothing is done manually. As a result, there is no delay in transaction processing, giving people confidence in their invested money.
→ Increased Visibility:
With the advent of cross border payment service providers, there is an increase in the transparency of the overall fee deductions. As a result, the ecommerce sellers know how much is their outgo in the name of the transaction fee.
In contrast to the traditional system, the latest online payment systems have heightened clarity on fees charged by the players involved. The number of fees charged by the payment processors can now be seen by people. They know how much money is deducted in the name of the transaction fee. The payer and the receiver have the hands of information on every end of the transaction. This gave confidence to the ecommerce sellers allowing them to expand their businesses.
→ Reduced Currency Conversion Time:
If you want to grow your business exponentially in this competitive time, you need to use progressive systems. In the current scenario, cross-border payment service providers have fastened the currency conversion time. This was not the case earlier, and it took 4-8 working days for one transaction to get completed.
But now, with the refined and sorted international payment systems, the currency conversion rate and time are transparent. The payer and the receiver can see it on a real-time basis. This has boosted the confidence in the eCommerce sellers. They understand that their money is more safe than earlier. Updated regulations ensure the safety of payments and prevent the security of information passed. This is what sorted business scaling for ecommerce sellers.
The future of eCommerce relies on cross-border payment service providers.
The future of eCommerce relies on cross border payment service providers as that is the only way to uplift the boundaries of businesses abroad. The robust banking system and multiple currency acceptance features lifted the barrier of payment processing. It further made selling easy and fast for the sellers.
With the rise of technology, features, and demands expansion is possible only with cross border payment service providers.
eCommerce Sellers: Essentials of Cross Border Payments Service Providers.
For extensive experience and growth in the cross border payments for ecommerce sellers, these are the essentials:
To make cross-border eCommerce a success, the customers must create their login profile on the payment service provider page. As a user, you must select the language of the shopper for a localized shopping experience. The seller must keep in mind the languages that are comfortable for the customers.
The payment service provider must include local payment methods without which you can lose the business.
Processing and Approval:
For the cross-border eCommerce transaction, processors must tie with the banking partners. The payment approval is provided by the bank that is an excellent match to support the trade. Once the bank gives consent, it then intimates the customer’s bank for confirmation.
- Order Fulfillment: The seller fulfils the desired order.
The payment processors, after converting the currency and deducting the transaction fee, the merchant receives the settlement amount.
Let us look at an example of how cross-border payments are involved:
PingPong: cost-effective cross-border payment service provider.
PingPong is one of the most trustworthy and cost-effective cross border payment service providers. It is the payment solution on which the sellers and merchants depend. With PingPong, you can do these:
→ Accept payment in foreign currencies.
→ Receive money at the lowest transaction fee rate.
→ Send money abroad.
→ Pay your suppliers.
Any eCommerce seller looks for a payment solution provider who can help increase revenue, leading to high profits. With PingPong, the online sellers can operate in multiple marketplaces.
Everything sounds great, but why do people prefer PingPong is because it is cost-effective:
For example, if your monthly receiving amount is 1000 USD, this is what you will receive via PingPong:
Amount Receivable= USD1000
Transaction Fees= (-) 2% of Amount(Average rates)= USD20
Amount after deducting fee= USD 980
Real-time exchange rate= 74.1385
The amount receivable in INR= INR 72,655/-
In comparison to that of PingPong, other payment service processors deduct 3-4% in the name of transaction and currency conversion fees. Which otherwise would have resulted in a lesser amount close to INR 71173/-. Hence, PingPong helps eCommerce sellers to increase their profit margins, especially when the amount receivable is enormous.
Is PingPong-the payment service provider safe for eCommerce?
Running a business online? Are you engaged in selling products online that involve accepting payments from customers abroad? If yes, then you must understand the importance of choosing a safe online payment service provider.
Some payment processors like PingPong are absolutely safe for you to consider. It is the easiest way to receive global payments at economical rates.
PingPong has just simplified the cross-border payment for eCommerce sellers like you. For sellers, it is a quick and easy process. The payment processor supports you to:
→ Accept payments worldwide.
→ Send money to India.
→ Receive money from abroad.
→ 100% transparent and no hidden costs.
The data of the sellers is safe, and in no case, the information is leaked out. Furthermore, PingPong has a straightforward dashboard that makes the transactions seamless and secure. Apart from this, the customer service team at PingPong operates in real-time to solve issues instantaneously.
What should eCommerce sellers see when selecting a payment service provider?
If you are an active eCommerce seller who dreams of profit, you must sell better and faster. But will that suffice?
As a business owner, you need to save money at every point of the complete process. One aspect where you can save a considerable amount of money is using a low-cost payment solution provider. Let us look at some factors that, as an eCommerce seller, you must consider before selecting a payment service processor:
- Choose the provider that has a clear payment flow, and that is hassle-free.
- The payment processing should be secure and safe for your customers to use.
- The solution provider should have low-cost transaction fees.
- Before finalizing your payment solution provider, consider the fees and service agreements requirements.
- There should be no compulsion or easy step registration for the buyers. It will help you with effective transactions.
- The payment solution processor should have an easy integration process with the banks.
- The payment processor must have a feature of recurring billing that makes your monthly tasks easy.
- Pick a solution that provides a 24X7 support system.
Looking for a comprehensive solution that helps you grow your business beyond domestic boundaries, PingPong is the most influential name. The key objective of the brand is to help the merchant save money and increase their profits. With the changing times, more and more people have started shopping online. They are not even affected by where they are shopping since the cross-border payments have been made successful.
The seamless integration of banking systems and online shopping platforms have boosted the profitability of eCommerce businesses. Well, the only trick is to mindfully pick the payment solution provider as that impacts your incomes and customers.