This week, we’re talking about the important stuff: Getting paid! It’s rather pointless doing eCommerce otherwise…
The credit card system of payment that oils the wheels of commerce in the US and Europe is far from being standard operating procedure in Thailand and throughout much of Southeast Asia. According to The Economist, less than 10% of the region’s people own credit cards and many of those who do avoid using them online because they’re concerned about getting ripped off.
Cash is still King in Thailand
In Thailand, it’s common to pay for products via bank transfers and cash on delivery. Many people in Thailand even pay their bills in cash at the ubiquitous 7-Elevens. Lazada.com, Rocketinternet’s stab at becoming the Amazon.com of Southeast Asia, says many of its customers prefer COD.
The popularity of COD is primarily due to trust issues. Online shoppers are concerned over whether they’re going to get the product they expect, or even if anything will be delivered at all.
Managing Transactions With a 50-70% Cancellation Rate
Paul Srivorakul of logistics company eCommerce says 50 per cent to 70 per cent of Southeast Asia’s over the counter, bank and ATM transactions are cancelled, while the cancellation rate is only 5 per cent to 8 per cent for COD. “In order to win Southeast Asia’s e-commerce sphere, companies need to invest in cash on delivery, no matter how difficult, Srivorakul said in a post on LinkedIn. “Just as same-day delivery was Jeff Bezos’ challenge at Amazon, we see COD as a new standard of service required for our market.”
SEA’s many currencies also pose a problem for companies. Businesses who are not prepared to accept a range of payments, including COD, will struggle.
Meanwhile in Australia
In contrast, or perhaps as a glimpse for things to come, in nearby Australia online shopping is the leading purpose for using credit cards. Many venues Down-Under support a tap-to-pay system where customers can tap their phones against a special card reader.
Let us sort out your eCommerce payments
If you’re looking to accept COD, transfers, e-wallet transfers, and other types of payments besides credit cards talk to us – we’ve sorted out these implementations for clients running a wide variety of eCommerce activities. and accepting a diverse range of currencies.
