Expansion into the Asia-Pacific (APAC) area remains problematic due to the lack of local payment options offered by eCommerce businesses.
According to the recent research “The Emerging APAC Opportunity: Local Payment Methods Edition,” a 500-employee survey, poor localization is increasing cart abandonment rates, and 41% of enterprises who sell to APAC without localized payment choices reported cart abandonment rates of more than 60%.
When compared to retailers selling in the APAC area and accepting local payment methods, cart abandonment rates drop to 32%.
“Many of the firms made judgments based on their own experience,” Jiang explained. Visa, Mastercard, and worldwide card networks dominate payments for persons living in the United States, Canada, and the United Kingdom.
It might be difficult to comprehend why individuals in APAC and many other countries do not use or have access to global card schemes. From that vantage point, it is more difficult to comprehend the magnitude of the challenge.”
According to the report, not only are local APAC payments used at a low rate of 13%, but only 1.8% of eCommerce businesses are aware that APAC customers prefer local payments denominated in local currencies.