Why Global Consumers Choose Digital Payments

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Businesses are no longer limited by geographic boundaries, with customers across the world able to purchase products and services. Thanks to the internet, a consumer can purchase items from a store located on the other side of the world and have it shipped directly to his front door. But paying for the items can be challenging, especially when deals are made between countries that use different currencies.

Over the past couple of decades, payment services have stepped forward to provide viable solutions to that challenge. Companies like PayPal handle safely storing credit card data and converting it to the applicable currency, charging a small fee for the effort. Digital payment methods have rapidly become the most popular way to pay for international items, now serving as the most preferred global payment method.

Protected Data

Consumers still have a small amount of uncertainty when transacting with overseas companies. Wire transfer scams are well-known and personal checks are often off limits for international purchases. That leaves only one other option: credit card payments. However, customers are understandably reluctant to hand over a credit card number to a company located on the other side of the world, especially since there’s no way to know for certain that they employ the same credit card security standards as a customer’s native country requires.

When a customer uses a digital payment service, the credit card number remains with the provider, who handles the transaction on behalf of the customer. This safeguards the customer’s information at each point during the purchase while still getting the money from the customer to the business.

Purchase Protection

As nations ease purchasing restrictions for residents, more consumers than ever are enjoying the online shopping experience. With this growing consumer base comes concerns about protection for the purchases customers make. Digital purchases offer fraud protection, allowing members to dispute a fraudulent or incorrect charge. This element of protection gives customers the peace of mind they need when purchasing overseas.

PayPal offers seller protection, as well, allowing businesses to safeguard themselves against the major losses chargebacks and disputes can bring. As long as a business accurately represents its items and ships them using the timeline it promised, the purchase is protected on the seller end. Digital payment providers generally serve as an arbitrator between businesses and customers to fairly and objectively resolve any disputes that arise.

Convenience

Whether a customer is purchasing an item domestically or across national borders, convenience is perhaps the biggest sell for digital payments. Credit card information is permanently and securely stored within the interface for use whenever a customer is shopping online. Instead of manually entering a credit card number every time a customer wants to purchase something, he can simply enter a digital payments password and payment will be made. For eBay shoppers who have signed up for PayPal, payments are integrated into the eBay website, with the customer guided through payment as soon as a purchase has been made.

The biggest drawback to digital payments is that they aren’t accepted everywhere. Many sites prefer to integrate their own checkout systems, since digital payments providers often charge slightly higher fees than regular merchant accounts. This means that international customers with digital payment accounts set up will still have to enter credit card information.

When shopping internationally, payment remains one of the biggest challenges. Digital payment services provide a safe, convenient way to pay for items while also having each purchase protected. For businesses, the popularity of digital payments means that they can reach out to a global customer base without having to set up a separate way for them to pay.

Posted on Monday, January 26th, 2015