On May 26, cross-border payment service provider PPRO released the “Guidelines on Hidden Costs of Payment Difficulties in Cross-border Retail” (hereinafter referred to as the “Guidelines”) in Shenzhen, focusing on a key but often overlooked issue in global commerce: “hidden card points” in the payment checkout process, which are continuing to affect merchants’ payment conversion rates and eroding revenue growth space.
The Guide displays the survey results of nearly 60,000 merchants and consumers from 42 markets around the world.
The “Guide” shows that although global e-commerce is still expanding rapidly, payment experience is still a key bottleneck restricting conversion rates.
72% of merchants said that the payment failure rate of cross-border transactions is higher than that of local transactions, and payment card points are continuing to cause the loss of consumers; 94% of cross-border consumers hope to complete payments in local currencies; 99% of consumers prefer to use payment methods they are familiar with and commonly used.
At the same time, the average abandonment rate of online shopping globally is about 70%, and it is as high as more than 75% on the mobile terminal.
When consumers encounter an unfamiliar or distrustful payment experience at checkout, the likelihood of abandoning their purchase increases significantly.
This loss of the checkout link is having a quantifiable impact on the global retail industry: Online retailers lose a total of approximately $18 billion per year due to shopping cart abandonment; and the total value of goods left in shopping carts is estimated to be as high as approximately $4 trillion per year.
The “Guide” further stated that the retail industry is undergoing structural changes – from focusing on price competition to focusing on experience-driven growth.
Up to 40% of consumers’ perceptions of value come from non-price factors, such as ease of payment, availability of trusted local payment methods, and a smooth overall checkout process.
It is expected that by 2030, digital wallets will account for 65% of global e-commerce transactions; alternative payment methods will account for 79% of online transactions.
This shows that localized payment capabilities are no longer “optional” but an infrastructure for expanding global retail.
The “Guide” emphasizes that for global retailers, large-scale promotional seasons are always a critical stress test for operational capabilities.
Whether in the middle or at the end of the year, the concentrated outbreak of traffic and orders will put significant pressure on the supply chain, fulfillment system and payment infrastructure.
At these critical moments, growth means not only “selling more” but also “being able to successfully collect payments.”
The stability and localization capabilities of the payment system are becoming decisive factors affecting conversion rates and revenue performance.
PPRO CEO Motie Bring said in an interview with the media at the press conference that if companies want to seize the opportunity of increased demand during the major sales season, they must strengthen the construction of core payment infrastructure, including providing users with locally preferred payment methods, ensuring a smooth and trustworthy checkout experience, and maintaining high system stability during peak transaction periods.
Motie Bring emphasized that as global retail continues to evolve, Chinese brands are entering a new round of international growth.
In this landscape, building a robust, flexible and localized payment infrastructure will become a key foundation for seizing the next wave of global opportunities.
