Local FinTech wallets are a key part of the Asia-Pacific (APAC) e-commerce ecosystem. Whether it’s Alipay in China, Paytm in India, Kakao Pay in South Korea or Rakuten in Japan, shoppers are used to using local wallets to transact in their daily lives.
So why do only 1.8% of merchants think APAC buyers even want to use local wallets?
B”The Emerging APAC Opportunity: Local Payments Edition“Cooperation with Citcon PYMNTS surveys 500 business leaders from eTailers across the US, UK and Canada to see how payments fit into their APAC strategies – and how misconceptions about APAC payments are hurting their bottom line.
Key findings from our research include the following:
• Cart abandonment rates are 32% higher among APAC merchants that do not offer local payment options. APAC cart abandonment hits merchants the hardest across all channels: 41% of these merchants believe that not providing local customers with the payment options they want, including those common in APAC consumers’ countries of origin, is causing their e-commerce shoppers to abandon their carts.
• Merchants with local payment options generate 9% more APAC revenue on average than merchants without these options – and many generate even more. Specialty eTailers that offer local payment options for APAC customers generate 22% more regional revenue than those that do not offer local payment options.
• Only 13% of merchants across the US, UK and Canada who sell to APAC customers offer local wallets, despite the importance of these wallets to local buyers. Even more striking, only 1.8% of these merchants believe that APAC customers want to use such local methods, and more than a quarter mistakenly believe that APAC consumers want to use global credit and debit cards.
These are just some of the details of our comprehensive research on the expansion plans of APAC cross-border merchants. “The Expanding APAC Book of Opportunities: Local Payments Edition” details how misconceptions about APAC payment preferences are limiting the growth potential of APAC merchants.
To learn more about how misunderstanding the APAC payments market is cutting into international merchants’ bottom lines, taken down the report.