Singapore – A new report from global payments and financial platform Airwallex has revealed that around 54% of global consumers expect to increase amount of international online shopping, signalling an increase in cross-border shopping. However, the report also notes that consumers also expect more payment flexibility and transparency this year.
According to the report, around 61% of consumers perceive international merchants to be trustworthy, while around 65% expressed confidence in the security of their personal and financial information when buying from international merchants.
When shopping with international merchants, around 77% of survey consumers would likely abandon their cart if their preferred payment method is not available. Additionally, 54% stated that they are unlikely to return to online stores that do not transparently disclose additional fees like currency conversion and international transaction fees.
Moreover, credit cards (39%) were ranked as the most frequently used payment method amongst consumers shopping online from international merchants, followed by global digital wallets (26%). Meanwhile, shipping costs and transparency are ranked as the most important factors when evaluating the shipping policy of an international merchant (41%), while lengthy refund processing times represent the most prominent challenge for consumers (47%).
The report also noted that 59% of consumers will likely make online purchases from international merchants through social media platforms; Consumers in China (86%), Hong Kong (76%) and Singapore (62%) showed the highest appetite for social commerce.
In addition, accessing better deals and offers on social media platforms (49%) was the top global motivation for consumers to buy from international merchants, followed by personal recommendations (42%) and interactive online selling (38%). On average, consumers use Facebook the most (28%) to make online international purchases, followed by TikTok (22%) and Instagram (20%).
Kai Wu, chief revenue officer at Airwallex, said, “E-commerce is more global than ever. Despite ongoing economic uncertainty and slowing global growth, it is clear that consumer spending will continue to grow. With the global cross-border e-commerce market set to reach USD 7.9 trillion by 20301, it is critical for international merchants to solve consumer pain points and deliver the best possible customer experience in order to thrive in this competitive market.”
He added, “As a global platform, we see millions of transactions on a regular basis, and are eager to find more innovative ways to support merchants as they navigate the complexities of cross-border e-commerce.”
