While more than half (54%) of global consumers expect to increase their cross-border purchasing over the next six to 12 months, they need flexibility and transparency in the digital payment experience to make that happen, according to a report released by leading global payments and financial platform, Airwallex and Edgar, Dunn & Company.
“Despite ongoing economic uncertainty and slowing global growth, it is clear that consumer spending will continue to grow,” Airwallex chief revenue officer, Kai Wu said.
“With the global cross-border e-commerce market set to reach US$7.9 trillion by 2030, it is critical for international merchants to solve consumer pain points and deliver the best possible customer experience in order to thrive in this competitive market.”
Three in five (61%) consumers perceive international merchants to be trustworthy, while 65% expressed confidence in the security of their personal and financial information when buying from international merchants. Globally, the US (36%) and China (25%) stood out as the top regions for consumers’ international shopping.
The rise of digital payment methods is a key reason consumers feel more comfortable buying goods and services from anywhere in the world, emphasising the importance of flexibility and transparency in the payments and shipping process.
When shopping with international merchants, 77% of survey consumers would likely abandon their cart if their preferred payment method is not available. Additionally, 54% are unlikely to return to online stores that do not transparently disclose additional fees like currency conversion and international transaction fees.
Credit cards (39%) were ranked as the most frequently used payment method among consumers shopping online from international merchants, followed by global digital wallets (26%). Shipping costs and transparency are ranked as the most important factors when evaluating the shipping policy of an international merchant (41%), while lengthy refund processing times represent the most prominent challenge (47%).
Just over one-third (34%) of consumers cited greater product options as the primary incentive for shopping internationally, which closely competes with the desire for lower prices and better quality products. Lower prices emerged as a significant driver for international shopping in the UK, the US, and Australia, whereas greater product availability and superior product quality were identified as key factors in China, Singapore, and Hong Kong.