Did you know that cross-border payments are on the rise? International transfers are set to rise faster than Skynet taking over the human race (well…almost).
Many merchants face high international card transaction fees, which average 3.4% during peak periods. These fees significantly impact the overall payment cost structure and profitability. This issue is further compounded for some merchants, with up to 40% of their card payment volume coming from international cardholders.
Oligo’s Insight
By analysing card origin data, Oligo identifies key patterns in the merchant’s international transactions, including:
- The top countries of origin for international card use
- Customer behaviour related to payment preferences
- Regions where alternative payment methods could prove more effective
Based on these insights, Oligo proposes a targeted strategy to introduce relevant APMs to optimise the international segment.
By integrating digital wallets and localised APMs, the merchant
- Reduced reliance on expensive open-loop international card rails
- Aligns with customer payment preferences, improving satisfaction and trust
- Delivers a more seamless and flexible checkout experience
In addition, customers using digital wallets benefit from more favourable FX conversion rates, lowering their total payment cost and increasing their likelihood of completing purchases.
The Impact
💸 Forecasted Savings:
- Up to 200 basis points reduction in international card fee exposure
🌍 Improved Customer Experience:
- Broader payment acceptance
- Lower FX conversion costs for international customers
- Stronger brand perception in key international markets
This example highlights how leveraging payment data analytics and APM integration can lead to cost savings and a better customer experience. By moving beyond traditional card rails and embracing a multi-rail payment strategy, the merchant is positioned for sustainable growth and improved profitability.
At Oligo, we specialise in identifying hidden payment inefficiencies and delivering smarter, customer-centric payment solutions. If your business is looking to optimise international payments, reduce fees, and elevate your customer experience—our team is ready to help.
