The key issue in cross-border e-commerce is payment. It is indeed difficult for us to be in our home country and use the culture of our home country to perceive foreign cultures. The same is true for business. We must abandon subjectivity and use objective thinking. Communicate and understand in person. A very important key issue in e-commerce is payment. Correct and appropriate payment methods can fundamentally promote business growth, so we should pay attention to research. How does cross-border payment work? Why do so many global cross-border payments fail? Focus on improving payment conversion rate by 20%.

Visa: In the international credit card category, Visa has major purchase volume market share in the Middle East and Africa, Europe and Latin America. It has 323 million cardholders worldwide. , MasterCard: It is the second largest credit card network in the United States, processing transactions in more than 210 countries. It has 191 million cardholders worldwide.

American Express: One of the preferred payment methods in the United States, Mexico, Colombia and Chile. It has 58 million cardholders worldwide and is active in more than 130 countries. It's aimed at high-income cardholders.

Discover: 57 million cardholders worldwide. Along with Diners Club, Discover is one of the most popular payment methods in Brazil.

Diner club international: It is accepted in more than 185 countries and is one of the preferred payment methods in Chile, Colombia, Brazil and Argentina.

JCB: An international payment brand headquartered in Japan. There are more than 105 million JCB consumers; the card is accepted in 190 countries.

UnionPay: About 90 million cards have been issued in 48 countries and regions outside mainland China. It is also the second largest international business card brand in Pakistan.

CartaSi: The most commonly used credit card in Italy.

Dankort: a credit card issued by a Danish national institution, generally the preferred payment method recommended by merchants

Carte Bleue: France's leading debit card payment system (also known as Visa debit card)

Tarjeta Naranja, Nativa, Tarjeta Shopping, Cabal, Cencosud, Argencar: these are all local payment cards in Argentina.

SEPA Direct Debit: Payment method recommended by 45% of European merchants, with >500 million potential users

ACH: Number of ACH transactions (US-specific payment method), 2017 An increase of more than 1 billion for the third consecutive year.

U.K. Direct Debit: The preferred method for more than 50% of bill payment users in the UK

E-wallets are becoming a popular payment method around the world, and consumers around the world are switching from debit cards/ Credit card payment habits are evolving towards e-wallets/bank transfers.

Alipay: Alipay is not completely consistent in various countries around the world, and the payment service support functions are not completely consistent. It was founded in China and is used by 48% of Chinese merchants. As of 2016, it covers 54% of China. Mobile payment market share.

Apple pay: Currently the leading e-wallet in the United States and Canada

Visa checkout: As of April 2017, there are more than 20 million active customer accounts worldwide. Shoppers can store and use any credit card in the Visa Checkout eWallet.

Masterpass: As of May 2017, there are 85 million accounts worldwide that support Masterpass.

PayPal: 237 million people have active PayPal accounts.

Google pay: Formerly known as Android Pay.

Payment request API (W3C): This new payment tool allows e-commerce merchants to request any card-based payment on any supported web browser, and the browser provides a user interface to accept it. (The browser already stores the shopper's payment details.)

Web money: The main e-wallet payment method in Russia and Ukraine

Skrill: A very popular e-wallet in Europe, Consumer users cover more than 200 countries.

Bank Transfers, bank transfers are irreversible and the handling fees are very low. Bank Transfer supports more than 200 countries and 30 currencies.

iDEAL: Occupying more than 50% of the market share in the Netherlands

Giropay: Used by 14 million users in Germany, a country with a population of 80 million

Sofort: Supported in Austria, Belgium, France, Germany, Italy and Spain

eNets: Common transfer methods in Singapore

Cash and voucher payment methods, Boleto Bancario is commonly used in Brazil, and paysafecard is commonly used in Europe , paysafecard is one of the products operated by Paysafe Group Limited.

Finally, a brief introduction to Paysafe Group Limited, headquartered in the UK, focuses on online payment, e-wallet, gateway, bank transfer and other payment-related service providers. Its main well-known products are: paysafecard, skrill, Neteller< /p>

How do cross-border e-commerce handle cross-border payments?

1. Cross-border payment logistics and payment under the bonded zone model are like the right-hand man for the development of e-commerce. If an overseas company develops cross-border e-commerce business in China and already has a registered company in mainland China, it means that the overseas company has a Chinese domain name, ICP registration, and servers deployed in China. In this case, after Chinese consumers place an order, the company can use the bonded area or direct mail mode to deliver the goods. Accordingly, technical solutions for cross-border payments can be converted into electronic payment methods commonly used by Chinese consumers such as Alipay and WeChat Pay.

So what steps does a consumer go through from placing an order to receiving the goods? In the bonded zone model, foreign goods enter the country first, undergo bonded customs clearance and are stored in China's bonded zone. When Chinese consumers place an order, they are delivered directly from the bonded zone using the domestic logistics system. Cross-border e-commerce business involves very cumbersome bonded warehouse docking and registration work. Not only must "merchant registration and product registration" be completed before sales. After an order is generated, the relevant "buying and selling information, payment information, and logistics information" must be uniformly reported to the customs system for filing (the so-called three orders in one). The goods will be released for shipment only after verification by the customs. Therefore, cross-border e-commerce platforms generally go through the following eight steps from consumers placing orders to receiving goods:

1. Merchants register with the customs in advance to complete sales docking preparations;

2. The buyer places an order to purchase overseas goods on the merchant platform;

3. The order is transferred to the merchant's ERP or the merchant's own system;

4. The ERP passes the "Customs Reporting System" "Payment Order Reporting Interface" uploads the user authentication information, order number, user ID number, customs number and other information;

5. The mall reports the information to Alipay or WeChat Pay to generate a payment order number, and the payment information is reported to the customs;

6. At the same time, the order number is reported to the customs;

7. At the same time, the merchant uploads the designated logistics company order number on the backend or ERP system and reports it to the customs;

8. At this time, all three orders have been reported to the customs. After the customs review is passed, the express company will deliver the goods to the customer.

2. Cross-border payment under the overseas direct mail model In the overseas direct mail model, Chinese consumers first place an order, and the foreign goods arrive at China Customs for storage, and then undergo domestic logistics distribution after customs clearance.

Compared with the bonded area model, overseas direct mail enters the country in the form of personal packages. When taxed, you need to pay 5%-10% tax. This can ensure a rich variety of goods, but it involves overseas warehousing, collection and packaging, and cross-border transportation. , customs clearance, domestic distribution and other aspects, without strong control it is difficult to have an advantage in time and freight.

TMO

Group (Tanmo Network Technology) has fully developed payment integration in building e-commerce websites for cross-border companies, supporting access to Alipay, WeChat payment, UnionPay payment, etc. A variety of interfaces also provide ID verification functions that interface with customs, logistics information tracking and other technical solutions that meet the needs of cross-border e-commerce.

3. Overseas e-commerce payment solution If an overseas company develops cross-border e-commerce business in China, it does not have a registered company in mainland China, its website does not have a Chinese domain name and ICP registration, and the server is hosted overseas , so how does the e-commerce business complete cross-border payment under this situation?

From a logistics perspective, such companies often use postal services to deliver goods, and payment information does not need to be confirmed by Chinese customs when consumers place orders.

One solution is for overseas companies to find an intermediary agent with an entity in China, collect payments in the name of the agency company, and the intermediary charges a certain percentage of service fees. Since the servers of overseas e-commerce companies are not in China, agency companies bear certain risks.

Another solution is to use the international version of Alipay or the overseas version of WeChat Pay. Overseas companies need to pay a handling fee of 2%-3.9% for withdrawals, and the arrival is often delayed, and exchange rate changes will also affect income.

4. The import cross-border trade payment solution is different from the above three situations. There are also cases where some companies may have registered entities in China, but do not use the bonded model or overseas direct mail due to various reasons. It adopts the postal method, that is, in our general import trade, the payment method can be paid in China. The disadvantage may be that the tax rate is relatively high, but compared with the two-year time and cost of applying for a certificate, the way to quickly ship is to use postal customs clearance, pay the tax rate, and then use domestic payment methods.