What's Happening?
Retailers are increasingly engaging in cross-border commerce, with significant growth in international orders. However, hidden payment costs such as processing fees, currency conversion, and fraud controls can impact margins. Retail TouchPoints outlines strategies for reducing these costs, including optimizing payment methods, considering local entities, and employing smart routing to improve approval rates and reduce fees.
Why It's Important?
As cross-border commerce becomes a core revenue stream for retailers, managing payment costs is crucial for maintaining profitability. By implementing strategic payment solutions, retailers can enhance customer experience, reduce transaction costs, and improve conversion rates. This approach supports sustainable international expansion and helps retailers navigate the complexities of global commerce.
What's Next?
Retailers are encouraged to evaluate their payment setups and consider adopting local payment methods and entities where feasible. The use of enhanced scheme data and balanced fraud controls can further optimize transactions. As international sales grow, retailers must continuously adapt their strategies to ensure cost-effective operations and maximize revenue potential.
