How to effectively manage international payments?
Cross-border e-commerce is becoming increasingly popular among Czech businesses. This online sales model presents a significant earning potential for companies, which is expected to grow at twice the rate of local e-commerce revenue in the coming years.
Thanks to technological advancements and the increasing availability of digital tools, entering foreign markets is no longer as complex as it once was. A crucial, yet often overlooked, element of cross-border sales success is payments. A well-organized payment processing system can significantly impact sales results, customer trust, and operational cost minimization.
A primary challenge for Czech businesses looking to sell their products or services abroad is aligning payment methods with the expectations of consumers in different markets.
Central and Eastern Europe (CEE) is a dynamically growing e-commerce market, and countries in this region are often the first destinations for Czech companies expanding their online sales. However, it’s important to consider that consumers in these markets have diverse payment preferences, such as:
Offering local payment methods tailored to consumer preferences in each country is crucial for cross-border e-commerce success. Sellers who ignore local preferences may face abandoned shopping carts.
Selecting the right payment service provider capable of handling various payment methods, both global and local, for your store is one of the most critical aspects of entering foreign markets. Popular e-commerce platforms like Shopify, WooCommerce, and Magento offer integrated payment gateways, but their basic versions often limit you to a few global payment methods.
Additionally, online sellers interested in international expansion can expect their payments to become increasingly complex and multifaceted as they enter more markets.
Therefore, a business seeking to attract and retain local customers and generate high revenue from international online sales should consider partnering with a payment service provider specializing in cross-border transactions, offering:
Every international transaction interacts with multiple potential authorizing banks, payment processors, and payment method providers, many of which are unique to specific markets. Online sellers with fragmented payment infrastructures across multiple markets, i.e., using many different payment gateway providers in different markets, are therefore more exposed to the risk of payment security breaches and a higher number of declined payments. Consequently, this leads to reduced conversion rates and lost revenue.
To provide a convenient way to report and manage all these interactions, it is essential to use a single solution that integrates all the mentioned layers of the payment process.
That’s why at PayU GPO we have consolidated all aspects of payments into a single payment platform, configured to meet the individual needs of the store, and streamline all payment processes. Our solutions for local payment methods allow us to support sellers in developing cross-border sales and ensure secure and efficient transaction processing throughout the European Economic Area, as well as in South America and Africa. To ensure seamless and fully secure payments for both parties to the transaction, we use advanced technologies and security systems, including:
The processing of each payment consists of many stages, and each can affect the approval or rejection of the transaction. The role of a payment operator, such as PayU GPO, which supports many Czech companies in international expansion, is to ensure a smooth, secure, and efficient flow of funds from the buyer to the seller.
To effectively handle cross-border payments, it is essential to find a payment partner who has a deep understanding of local specifics and consumer preferences. One such provider is PayU GPO. We offer modern payment solutions tailored to various markets and support Czech businesses in developing cross-border sales. At PayU GPO, we integrate local payment methods and provide solutions that enhance transaction security, which is crucial for building customer trust and loyalty.
Additionally, an important factor to consider when choosing a payment service provider for cross-border transactions is FX payouts (multicurrency payouts). This solution, offered by PayU, allows online sellers, including those on marketplaces, to receive funds in their preferred currency, regardless of the country where they sell their products.
For example, a seller from the Czech Republic who sells their products or services on the Polish market can receive payment in Czech koruna (CZK), even though their customers pay in Polish zloty (PLN). Similarly, a Polish seller offering their products or services in Hungary may prefer to be paid in Polish zloty (PLN), even if sales are made in Hungarian forints (HUF). This solution would also be beneficial for Romanian entrepreneurs who, when selling in the Czech Republic, would want to receive payment in Romanian lei (RON).