4 Ways to Simplify International Payments
Technology has changed the way we buy and sell goods forever. A small t-shirt shop in Amsterdam can sell to customers in Tokyo, as if he had a brick-and-mortar shop in the heart of the city. International barriers have been shattered, access the internet has skyrocketed and overseas shipping is faster and more far-reaching than ever.
But there is one obstacle that still poses a big challenge to most online sellers, and that’s international payments. Dealing with conversion rates, international money transfers and withdrawals may seem daunting, but it’s not as hard as you think. Here are 4 tips for taking the confusion out of international payments:
1: Understand currency exchange rates
One of the hardest parts of selling internationally is getting your head around fluctuating currency exchange rates. Exchange rates are influenced by many aspects, like interest rates, confidence in government, economy strength and inflation.
When you get paid by someone in a foreign country, the money is exchanged from your customer’s local currency to your local currency. Exchange rates can rise and fall daily, even hourly, which can have a big impact on the amount your will receive for your sale. What’s more, each payment service can offer a different exchange rate, to makes things even more complex.
Before you choose an online payment service, read up on their exchange rate policies to make sure they offer competitive rates and localized solutions for getting paid and withdrawing funds in your country.
2: Make it easy to get paid
Connecting the dots between your global customers, the marketplaces and your bank account doesn’t have to be difficult. By signing up for a global payment service like Payoneer, you’ll be able to easily access your earnings in your local currency.
Because Payoneer is already integrated with all the big marketplaces like Amazon, Wish, Lazada and more, you can accept payments in USD, GBP, EUR and JPY and then withdraw them in your local currency for a very low cost.
3: Keep the cash flow strong
Ecommerce businesses must efficiently manage their cash flow to succeed. In order to do this, you must always have quick access to your funds. If you’ve ever relied on international wire transfers to send or receive payments, you’ll know that they can take up to 15 days to be processed. And you could be hit with a big bill for that not-so-speedy service too.
At Payoneer, we have a unique service that lets you send and receive international payments within 2 business days, and it’s free. Pay your contractors, suppliers, or service providers quickly and free of charge, even if they don’t yet have a Payoneer account.
4: Set up a few ways to withdraw your funds locally
So your ecommerce store is set up and the sales are rolling in. But, how do you plan to access your money? A payment service is valueless if you can’t use it to withdraw your local currency and pay for everyday expenses like rent and groceries.
With Payoneer, you have several ways to withdraw your earnings in your local currency:
- From your Payoneer account to your local bank account. It’s fast, easy and much more affordable than international wire transfers.
- From a Payoneer Prepaid MasterCard. Load your earnings to your card and use it to withdraw money from ATMs, shop online or spend in stores and save on conversion fees.
Once you’ve simplified your global payments, you can spend more of your time and energy on what’s most important – growing your business. Breaking down international payment barriers can breathe new life into your ecommerce business, from reaching new markets to forging new partnerships. Don’t let the formalities and high fees get in the way.