Local Global Payments

Joe D

I just finished an alternative payments article for Xbiz World yesterday, and in my research I came across some really novel survey results – I thought I would post some of them here and would be interested in your comments – whether you were surprised by the results or whether they are in line with what you would expect.  I’d also like to know if anything here confirmed your current marketing efforts, or caused you to pause and consider something you might change.

In a WorldPay global research project, respondents were asked at what time of day they were most likely to be purchasing online:

12am  -  6am --- 10%

6am – 12pm --- 16%

12pm – 6pm --- 30%

6pm – 12am --- 44%

…and the global online peak is 8:45pm.  If you are engaged in behavioral marketing, launching new campaigns, sending daily deals or announcing special sales or free shipping incentives, this information may have you planning your blasts around usage.

This question of respondents surprised me at first, but it just shows how in-depth research efforts can really drive marketing decision making. Where the customer is physically at the time of purchase also is a key factor.  We know that the global adoption of mobile handsets and smartphones is having a major impact on our eCommerce spending, survey results indicated 95% of online spending worldwide still occurs at home.  …And this also explains why 64% of us still make our purchases on our home PC.

Distribution of purchasing by location; where consumers said they shop:

Living Room – 54%

Bedroom – 43%

Study – 35%

Dining Room – 14%

Kitchen – 10%

Garden – 5%

Bathroom – 3%

Garage/Shed – 2%

Now here is a statistic that is dear to my heart ;-)  As a specialist in alternative payments, it was reassuring to note that 61% of global respondents have more faith in a website that offers a great choice of payment options.  Reinforcing this number was the result that 33% of ‘heavy' global shoppers used alternative payments at checkout.

Employers may be interested to know that 29% of respondents made purchases at work.  46% watch television while they shop online.  36% of ‘heavy’ global shoppers have used a smartphone to purchase online. 

You will also want to note these special results related to why customers return to a site and remain loyal customers.

The top reasons for returning to a site for repeat business:

Reassurance that personal and financial information is secure – 75%

Payment fraud control and checks – 66%

Product and Service guarantees and warranties – 57%

Provide unique payment options that enable customers to join and purchase anonymously, protecting their personal and financial information.  Enjoy the best high-risk adult processing opportunity and offer alternative payment methods.  A key point for me is that I don’t want to replace anything a Merchant is using now, I just want them to add coverage and diversify their billing portfolio.

It is surprising to see how MUCH consumers in emerging markets will spend online. 

I’ll wrap this post with some information on Brazil and Russia, because these are two markets I can help you monetize – do you even accept credit cards from Brazil and Russia? 

Brazilians spend an average of 27% of their disposable income online.  Only 37% of the population currently has online access, so think ahead and establish yourself in the Brazilian market now.  67% have concerns about online security, so make certain you reassure potential customers on this commonly held fear.  Make sure your site is mobile optimized for your Brazilian visitors, because 50% now have a smartphone and this will surely spur eCommerce growth.  Be sure to check your navigation through a transaction as a customer, easy navigation and a speedy payment process are valued aspects of your site. 

Russians are spending 18% of their disposable income online.  Only 48% of the population has Internet access, and fully 74% are concerned about security issues.  50% own a smartphone while only 13% buy online with their smartphones, and 17% own a tablet while only 7% buy online with their tablets.  This is a growth area as 57% intend to use their smartphone or tablet for an online purchase in the next twelve months.  Like the Brazilians, Russians are looking for multiple payment choices and a fast payment process. 

Take a good look at your payment options – if you are not sure, find out what you are really offering on your geo-targeted pages – I think you might be surprised.  If you have some trouble finding answers LMK and I’ll help you find them. 

Be sure to read the November Xbiz World showcasing alternative billing.