Global trade,
local payments

– about the potential of cross-border e-commerce and the role of online payments in its development.

Cross-border e-commerce represents an earning potential for online merchants, and it will grow twice as fast as income from e-commerce sales in the coming years. In addition, for some entities, being present in only one market may even mean a decline in growth dynamics.


Cross-border e-commerce is becoming an increasingly important part of the growth strategy of e-commerce businesses, with payments being one of the key processes that support the generation of additional revenue from international transactions.


Consumers enjoy the fact that foreign retailers offer them access to a wider range of products. Already more than a third of online shoppers in the European Union take advantage of this privilege when making cross-border purchases. At the same time, due to the development of convenient digital payment methods, they feel increasingly comfortable buying goods online from any location and at any time. The right match between payment methods and user preferences in each market helps merchants to build trust and, consequently, increase the number of transactions and conversion rate.


However, cross-border payments constitute a complex and dynamically developing area where industry standards are evolving, and processes are becoming more multifaceted. There are also new legal regulations emerging and safety requirements are becoming more stringent. Customer experience, which is influenced by, among other things, the availability of local payment methods, is increasingly coming to the fore. For merchants selling in multiple markets, it can be particularly difficult to control all these aspects on their own, without the support of a relevant partner.


Online merchants interested in growing their business internationally may expect their payments to become more complex and multifaceted as the number of markets they want to be present in increases.


Many basic payment gateway solutions provide a simple way to accept popular global payment methods, such as card payments or e-wallets based thereon. The situation becomes more complex for merchants selling abroad if they want to accept local card payments, bank transfers, and other alternative payment methods.


Sometimes companies that want to quickly start selling in multiple locations choose to implement only globally available payment methods or start working with multiple payment gateways to process local payments in each location. However, the former approach does not fully meet the needs of consumers, while the latter is neither cost-effective nor easy to handle.


Merchants with fragmented payment infrastructures in multiple markets (using multiple payment gateways in different markets) are exposed to a higher risk of payment security breaches and a higher number of rejected payments, which leads to lower conversion rate and lost revenue.


With each international transaction interacting with a wide variety of potential authorizing banks, payment processors, and payment method providers, many of which are unique to specific markets, the importance of a single solution integrating these different layers of payments has never been greater in terms of providing a convenient way to manage and report on this process.


That is why, at PayU GPO, we have consolidated all aspects of payments into a single payment platform, tailored to the individual merchant’s needs, and we are streamlining all payment processes. Our solutions for local payment methods allow us to support merchants in growing their cross-border sales and take care of the secure and efficient processing of transactions in the European Economic Area, as well as in South America and Africa.


The form of payment offered by an e-shop or an online platform is crucial for finalising an e-commerce transaction. In many countries, up to half of customers may withdraw from a purchase if their preferred payment method is not available.


Companies selling goods abroad should incorporate local payment preferences into their strategies, which means investing in the right technology to ensure that consumers buying through foreign websites are able to:

  • view prices in the local currency;
  • make payments in the local currency;
  • make payments using their preferred method;
  • check upfront what any additional charges (taxes, duties, delivery, etc.) will be.


Offering payments in different currencies can be complicated. It is necessary, on the one hand, to adapt payment systems to support multiple transaction currencies, on the other hand, to support a specific settlement currency or currencies with the merchant. Thus, while sending and receiving money online is becoming easier for consumers and, from their perspective, takes seconds, the process of ensuring secure and reliable payments on the merchant side is becoming increasingly complex.


The processing of each payment involves several steps, each of which can affect the ability to approve or reject a transaction. The role of a payment operator such as PayU GPO, which supports online merchants in their international expansion, is to provide a harmonious, secure, and efficient way for funds to flow from the buyer to the seller.

KEY TO SUCCESS #1: finding the right partners

Different countries prefer different payment methods. What is popular and widely accepted in one country may be quite different in another. Offering a wide range of payment methods is key to attracting customers. Finding the right payment processing partner to provide consumers with the payment options they want to use will not only help build trust but also translate into a higher number of positively completed transactions. The selection of logistics partners to ensure efficient supply chain management is also crucial for a successful cross-border e-commerce business. Swift and reliable delivery of goods abroad, together with a clear presentation of shipping costs and the provision of tracking facilities, are of paramount importance for customer satisfaction.

KEY TO SUCCESS #2: understanding your target market and consumers’ needs

Each market has different preferences and purchasing habits. Understanding these differences is crucial to tailor the offering to customers’ expectations in a particular region. Preparing a product offering and implementing a marketing strategy adjusted to the local market can significantly increase the chances of success. Ensuring quality customer service in the local language and understanding local customs and customer service standards are also of equal importance.

KEY TO SUCCESS #3: technology and optimization of the e-commerce platform

Technology continues to make international transactions increasingly easy. The development of online payments and e-commerce platforms enables transactions in different currencies and provides security for customers and merchants. When deciding to launch cross-border sales, it is important to ensure at one of the early stages that the e-commerce platform is suitably equipped to handle such transactions.

The e-commerce market is doing well and has gained momentum over the last decade. Research shows that a significant proportion of consumers are willing to spend their money abroad, thus creating a major new growth opportunity for merchants. Numerous online businesses, of all sizes, are already successfully developing their sales in international markets, using various strategies to reach customers beyond the national borders. Their success demonstrates the potential of cross-border e-commerce.