Jun 25, 2022 4:17:00 PM | Payment & Shipping Payoneer | A More User-friendly Approach for cross-border Transactions

Explore the pros and cons of different payment options for cross-border transactions and learn why Payoneer stands out as a more user-friendly option.

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Table of Content

  1. Intro
  2. Cross-border payment methods
  3. What is Payoneer
  4. Payoneer for online sellers
  5. Payoneer checkout
  6. Payoneer at Shoplazza

We already knew that the Covid-19 pandemic helped the growth of the global eCommerce industry. Of course, running an online business comes with many challenges, one of which is offering your consumers a quick and smooth payment method. The ability to provide an efficient payment flow, including flexible payment schedules, various payment choices, and an overall frictionless experience may significantly improve brand reputation, user experience, and customer retention.

In this post, we will examine the benefits and drawbacks of different payment options for cross-border transactions, why Payoneer stands out as a more user-friendly option, and how it may help businesses build their eCommerce business.

Cross-border payment methods

For cross-border business owners, managing finances may be a daunting process. They must manage different currencies, banking systems, and financial requirements. Furthermore, clients in different countries have varying preferences for cross-border payment options. Before choosing the best payment method, let’s discuss the advantages and disadvantages of various payment processing alternatives, such as credit and debit cards, bank transfers, and digital payments.

1. Credit and debit cards

Credit card payments are the most commonly used payment method in consumer-to-business transactions because they are simple and secure. Credit card payments are at the top of many nations' list of cross-border payment choices. That means your customers are expecting to be able to use their credit cards for their purchases. They will most likely go elsewhere if you do not give them this choice.

For merchants, however, credit cards come with some drawbacks. Most credit card companies charge a fee of 2-4% of the payment, plus an extra fee for cross-border payments, plus yet another fee if you need to convert money to a different currency. Furthermore, accepting credit and debit cards raises the possibility of fraud and other security difficulties. Taking credit cards increases the likelihood of fraudulent card use because they are easily stolen.

2. Bank transfers

Bank transfer, often known as wire transfer, uses accounts at each bank to send an instruction to debit an account in Bank A and credit an account in Bank B. Because the money is delivered through a credit union or bank, it's an excellent option for merchants that need to pay their overseas suppliers because it's a secure and trusted payment method.

Unfortunately, sending money worldwide through bank transfer typically entails a base cost. And, because not all banks have a direct link with one another, they must occasionally transact through an intermediary or a correspondent banking network.

3. Digital payments

There are several new digital payment options available, including e-wallets, online payment solutions, and buy now pay later (BNPL) services such as PayPal, Klarna, and iDEAL. Digital wallets are experiencing an increase in eCommerce-related transactions, particularly in many nations where credit cards and bank accounts have relatively low penetration. Digital payments can offer lower fees and faster clearing of funds. They are also simple to use, especially if you transfer funds from one banking system to another. For businesses, digital payment platforms that integrate with accounting and bookkeeping software make it easy to prepare tax returns, track expenses and income, and comply with local financial regulations.

The disadvantage of digital payment is that some are exclusively for certain nations or currencies or groups of countries. Therefore, you may need to employ several payment systems for all the currencies and places you require. Different digital payment systems also have varying levels of security, so do your research before selecting a provider.

What is Payoneer

When looking for ways to make and receive international payments that are quick, low-cost, and easy to use, it can be challenging to find anything that ticks all the boxes. In this post, we want to introduce a low-cost, intuitive online payment solution that makes it easy to make and receive payments in a number of currencies and across multiple borders. 

Payoneer is a global payment solution that offers a complete platform designed for the needs of today’s cross-border sellers. Payoneer now has 5 million customers and is available in almost 200 countries. If you're looking for a way to get paid online, Payoneer is a great option. 

With Payoneer, you’ll have access to multi-currency receiving accounts, enabling you to make and receive payments worldwide and then transfer and withdraw funds in your local currency. Payoneer allows you to accept secure, low-cost SWIFT transactions, bank transfers, and credit or debit card payments and convert funds from one currency to another for low fees of around 0.5%. Once you have a Payoneer account, you can use it to send and accept funds between other Payoneer users free of charge in over 150 currencies, and the payments clear in as little as a few hours.

Additionally, you’ll have the flexibility to pay your suppliers, manufacturers, and service providers quickly and securely from your Payoneer account straight to your recipients’ Payoneer accounts or via bank transfer. 

Here is the summary of the advantages of a Payoneer business account

  • Zero cost to sign up and get started
  • Broader global coverage across 200 countries and 150+ currencies
  • Streamlined billing solution
  • Multiple payment methods
  • Instant free Payoneer to Payoneer payments
  • Single dashboard to manage multiple online stores and payments
  • Business account management for large customers
  • Fee-free balance holding

Payoneer for online sellers

Online sellers need the right eCommerce payment solution. If you manage or are thinking of starting your own online business, you probably have heard about the challenges of managing cross-border transactions. Payoneer offers a variety of services suited to online sellers. Merchants who sign up for a Payoneer account can use many essential tools to help them grow.

Global Payment Service

Payoneer allows merchants to receive payments quickly and conveniently from companies and individuals worldwide, simplifying international business transactions. Merchants can get paid in multiple currencies, bill their global clients, sell on marketplaces worldwide, pay their overseas business expenses at low cost, and more. 

Payoneer provides a virtual local bank account for sellers, allowing them to seamlessly receive cross-border payments, making it a green option for international eCommerce sellers. A merchant from the Philippines can create a virtual US bank account to accept payment in USD and pay for Facebook ads with the Payoneer Prepaid MasterCard. It’s very eCommerce friendly. This solution enables merchants to eliminate all costs associated with wire transfer fees for payments received in these currencies. Payoneer helps e-Sellers significantly increase opportunities for global expansion, expand their reach and grow their revenues. 

payoneer global payment service

User-friendly platform

Online sellers can easily view and manage your transactions, including incoming payments, outgoing payments, point-of-sale transactions, withdrawals, withdrawals to your bank account, and account fees. You can also customize your view by filtering by transaction type and status, print or export the table for your records in Excel or PDF format, and generate a monthly activity statement with the click of a button.

payoneer's user friendly platform

Managing currencies

It is not unusual for businesses to require a multi-currency conversion service when paying suppliers or accepting payments from customers worldwide. Suppose you earn in one currency but need to pay in another, for example, from dollars and euros to pounds and pesos. In that case, Payoneer allows you to swiftly and conveniently convert cash between your Payoneer balances at a low, fixed-rate with no hidden costs. Within minutes, the converted funds will show in your Payoneer balance.managing currencies at payoneer

 

Tracking your payment 

When running your business, ensuring your payments arrive on time is crucial for account management, covering expenses, and making short-and long-term plans. Payoneer provides a complete view of where your funds are from when they leave your client’s account to when they arrive at yours. As a result, you know exactly when you’ll receive your funds, allowing you to manage your business’s finances better. Additionally, if your client hasn’t sent out their payment in time, you can easily send them a reminder directly through your Payoneer account.

Payoneer Checkout

Payoneer Checkout is the latest offering for eCommerce merchants with independent web stores, creating a unified experience across multiple digital channels. Payoneer Checkout is designed with online sellers in mind to increase conversions and maximize revenue. 

take your ecommerce to next level with payoneer checkout

As an online seller with Payoneer Checkout, you’ll be able to:

  • Manage all your web store and marketplace earnings in one unified Payoneer account.
  • Grow your revenue by saving on FX costs, better FX rates across a wide range of currencies, and generate more revenue due to superior acceptance rates.
  • Control and easily fight chargebacks with advanced anti-fraud solutions.
  • Get approved, onboard, and integrate your store easily and quickly through various methods and customize your checkout solution as you see fit.
  • Use your combined earnings to pay suppliers or advertising costs, withdraw to your local bank, spend online or in-store, and much more.
  • Sellers can integrate with Payoneer Checkout directly or via eCommerce platforms, simplifying how they set up their stores and start accepting payments from customers worldwide. 

With Payoneer Checkout, online sellers will now be able to seize the opportunity to expand their business in the massive DTC market and take another step toward realizing their potential in the world of digital commerce. 

Take a look at this full guide on how to set up Payoneer Checkout from Payoneer. 

Note: Payoneer Checkout is currently only available to merchants in Asia-Pacific but will gradually be extended globally.

Set up Payoneer at Shoplazza

As a SaaS pioneer, Shoplazza is dedicated to helping our clients globalize and scale up their online presence with our technology and ecosystem advantages. When it comes to getting paid at Shoplazza, we offer a range of payment methods that sellers can plug into their stores, depending on location, currencies, and specific needs.

Shoplazza is now integrated with Payoneer Checkout to offer merchants the option to pay via “Payoneer” by embedding Payoneer Checkout into their checkout page. This will allow merchants to improve their customers’ shopping experience and helps merchants start accepting payments from customers worldwide.

Payoneer at Shoplazza

  1. Navigate to Shoplazza admin > Settings > Payments > Credit Card > Choose payment collection method.

a guide of how to activate payoneer at shoplazza, step 1

  1. Select Payoneer and click proceed; you will enter the Payoneer page. 

a guide of how to activate payoneer at shoplazza, step 2

  1. Fill in the following account information on the channel management page, and click Activate to complete the binding and activation of the account.
  • Fill in the Account information
  • Select the Accept credit card type
  • Select the channel supported function at Function management

a guide of how to activate payoneer at shoplazza, step 3

4. After completing the account activation, you can proceed with payment collection through Payoneer.

With Payoneer, Shoplazza offers eCommerce merchants a simple and reliable way to expand and grow through direct-to-consumer sales all around the globe.

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Written By: Min Chen

Read articles written by Min Chen and learn the essentials about developing eCommerce businesses on Shoplazza.