Hello everyone, I am Lao San. I haven’t written an article related to payment for a long time. This time I will tell you what payment methods are used overseas.
Introduction
Let’s first look at the payment methods of two mainstream e-commerce products on the US site:
Payment methods for shein and Tumu US sites
In China, everyone must be accustomed to Alipay and WeChat Pay dividing the world. These two payment methods basically cover 90% of payment needs, but overseas, payment methods are much richer.
No. Payment Type Type Payment Product
Credit/Debit Card
/Debit Card
Visa,
E-wallet
E-
, Apple Pay, Pay
Online banking transfer/bank transfer
/Bank
Paytm,
Prepaid Cards
Card
Gift Card、 Play Gift Card
Cash/Pay on delivery/Offline payment
Cash/Pay on /
Cash, cash on delivery, POS payment
Digital Currency/Cryptocurrency
/
,,
Carrier billing
Phone bill payment, mobile phone bill payment
Direct payment and debit
Debit &
Automatic debit, direct deposit
In China, we usually use bank cards indirectly by binding bank cards (signing contracts) through e-wallets, while overseas, credit/debit cards are the most mainstream payment methods. Users can directly enter the card number on the shopping website to pay:
shein card payment
Others include the e-wallets we are familiar with, online banking transfers that are rare in China, and very rare offline payments, etc.
Next, let’s take a look at popular payment methods around the world by region.
Payment methods in major regions 1. North America
Credit card payment has a relatively long development history and a complete system in Europe and the United States. Credit card payment is still the most mainstream payment method with the highest market share in North America.
Credit Card Payment
Some common credit card organizations include VISA, , , and so on.
In addition to credit card payments, some wallet payments are also widely used in North America, among which old-fashioned wallets occupy an unshakable position.
Payment methods page
Other wallet payments, such as Apple Pay, Pay, Cash Pay, etc., also have a place.
2. Europe
The social culture of Europe and the United States is quite similar, and their payment habits are also quite similar. Debit card/credit card payments are the most mainstream payment methods, and they also dominate wallet payments in most countries.
Compared with the United States, the biggest difference in card payments in Europe is that it has more stringent payment security standards. Since October last year, Europe's new payment regulations have imposed relatively strong requirements on 3DS.
3ds-Source Technical Documentation
In some European countries, users prefer to use local payment methods, such as the most popular one in Germany, which is a direct bank transfer payment method.
PC User Experience
The pay now, pay later payment method is also more popular in Europe than in the United States and is the favorite payment method for many young people.
Icon 3. Japan
Credit card payment is also the most commonly used online payment method in Japan. Japanese people generally hold credit cards, followed by online banking, and then e-wallets. The most commonly used e-wallets include LINE Pay, Rakuten Pay, d払い（), etc.
icon
Prepaid cards in Japan are also a popular online payment method. The most common one is the Suica card, which is an IC card that can be used for payment in subways, buses, convenience stores and some shopping malls. Suica cards can be pre-loaded and then paid through contact or contactless technology.
4. South Korea
In South Korea, the main online payment methods are credit/debit cards and e-wallets. Unlike European and American countries, e-wallets have a larger market share in South Korea.
Tumu's Korean payment page
The biggest difference between card payment in Korea and that in Europe and America is that the main card issuing organizations are different. Cards in Europe and America are usually international card brands such as Visa, etc., while in Korea, cards are usually issued by local banks, such as Korean Bank Card or Smart Bank Card.
South Korea's e-wallets are in a three-way competition. The three most popular e-wallets are Toss, , and . Analogous to China's BAT, Toss is similar to China's Alipay, Kakao is similar to China's WeChat, and Naver is similar to China's Baidu.
-Source official website 5. Southeast Asia
Southeast Asia is geographically characterized by numerous islands, and its payment methods are also highly decentralized. There are relatively few users of credit cards, and online banking transfers/bank transfers and e-wallets are currently the main means of payment.
The following are the mainstream payment methods in parts of Southeast Asia:
Main payment methods by country
Indonesia
E-wallet (OVO/Gopay//Dana//), online banking transfer/bank transfer (/)
Singapore
E-wallet (//DBS //OCBC.Pay), online banking transfer/bank transfer()
Malaysia
E-wallet (Boost/Doku///CIMB.Click(s)), online banking transfer/bank transfer (FPX)
the Philippines
E-wallet (Gcash///Coins/)
Thailand
E-wallet (/()/LINE.pay), online banking transfer/bank transfer (/Omise), e-wallet (Fpay/MOMO./)
Vietnam
E-wallet (Momo//), online banking transfer/bank transfer (/)
Myanmar
E-wallet (///), bank transfer
Cambodia
E-wallet (/PiPay/), bank transfer/telegraphic transfer
Laos
E-wallet(/), bank transfer/telegraphic transfer
Myanmar
E-wallet (MKB/MAB), bank transfer/telegraphic transfer
We can look at the payment process below:
Payment Process – Source Reference 56. Middle East
The Middle East is known to everyone as a region of the rich with oil and gold everywhere. So how do these rich people pay? — Cash.
Locals rarely use credit cards. Cash On Delivery is a relatively popular payment method in the Middle East. It is a method of payment for an order in cash when the courier company delivers the package.
Cash On – Source Reference 6
Online prepaid payment (/PayU) and online bank transfer are also relatively common payment methods. Some local online payment platforms (Sadad/Fawry/Payby/STC pay) are in the emerging stage.
7. Latin America
Payments in Latin America are affected by some online factors and have always been referred to as a "payment depression" by various e-commerce and payment companies.
Latin American payment methods
Latin Americans particularly like credit card payments that support installment payments. More than 50% of Latin American users choose installment payments (), and installment payments are almost a rigid demand for Latin American users.
shein's Brazilian installment
At the same time, card payments in Latin America are also prone to rejections. Risks such as fraud, card theft, money laundering, etc. pose a considerable challenge to risk control in Latin American payments.
We can look at the payment methods of Latin American countries:
Main payment methods in the country
Brazil
Offline payment methods (), e-wallet (PIX), international credit cards (VISA, ), local cards (ELO)
Mexico
Offline payment method (OXXO)
Peru
Offline payment methods()
Argentina
Offline payment methods()
Uruguay
Offline payment methods (, )
Chile
Offline payment methods()
Colombia
Offline payment method (), online banking transfer/bank transfer (PSE)
It can be seen that offline payment is also a major feature of payment in Latin America. Users take their online payment credentials to nearby outlets and complete payment by cash or other means.
Payment process:
Payment process-Source Adyen official website
OXXO payment process:
OXXO payment process-Source official website 8. India
Although India's business environment is not ideal, it is a large market with a population of more than one billion, and it is also a place where payments need to pay attention.
Payment methods in India are diverse. In addition to the Indian government's official UPI (Unified Payments Interface), Paytm is the largest local e-wallet and also has a certain market share in the local market.
UPI stands for Unified Payment Interface, which was developed by the National Payments Corporation of India. UPI aggregates most of the banking channels and third-party payment platform channels in India. Users only need to fill in their ID (which can be a string of names, ID numbers, mobile phone numbers, email addresses, etc.) to quickly complete the payment, which is instant and around the clock.
9. Russia
In Russia, bank cards are the most popular payment method, but due to political factors, some international card groups, such as , have restricted payments in Russia.
In addition, online banking and e-wallets are popular among local young people. Online banking payments from Standard Bank, Federal Savings Bank and Foreign Trade Bank are more popular, and Qiwi is the e-wallet with the largest local share.
Summarize
As the domestic environment becomes increasingly inward-looking, going overseas to attract foreigners seems to have become a good track. Pinduoduo, Meituan, Alibaba, Didi and other major companies have all carried out overseas practices to varying degrees.
A journey of 100 miles begins with a single step. The commercialization of going overseas involves a whole set of logic, including placement, operation, etc. However, the realization of revenue still depends on the last step of payment. If this step is not smoothly implemented, the previous efforts will be in vain.
Therefore, it is very important for every overseas project to understand local payment habits and support local popular payments.
refer to:
[1].
[2]. "Understanding Payment in One Book"
[3].
[4].
[5].
[6].
[7].
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