A Guide to International Payment Preferences

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2 A Guide to Global -commerce - How to Make the Leap Retailers are increasingly setting their sights on foreign e-commerce to grow their businesses. Innovative technological solutions can help to manage cross-border logistics, optimize international marketing efforts and decrease transaction costs. But retailers face many hurdles such as fraud risks, local regulations, unfamiliar duties and taxes, and cultural differences. hen setting up cross-border websites, retailers diligently study important facets relating to the target country such as local currency and legal aspects. To avoid making the mistake of selling ice to skimos, savvy merchants analyze which products are most suited to the target market. They translate their websites and localize key words to attract buyers. Then they launch their websites and wait for business to take off. In many cases, buyers place items in their shopping carts only to abandon them at the final payment stage. After investing considerable effort and money in building a website tailor-made for its audience, the retailer asks: hat went wrong?

3 hopping Cart Abandonment The problem may well lie in the online payment method that retailers are offering. It is crucial to provide prospective customers in each locality with their payment method of choice as well as to follow new types of payment methods in every country as they become available. Almost half of them chose not to complete a transaction because they were not offered their preferred payment option. asy payments Offering various credit card schemes is not always enough, because in some countries credit cards are not the payment method of choice. Many consumers prefer alternative payment methods. But how can the retailer keep track of hundreds of localized alternative payment methods? Many merchants have adopted data-driven, flexible payment platforms which enable them to achieve optimal payments methods at every location. The result is a pleasurable shopping experience which buyers will be eager to repeat. Loyal customers njoyable shopping

4 A Guide to by Location Here is a short guide to payment preferences in different geographies and countries. % % % % % % %

5 UA In the U.., buyers predominantly use credit cards although e-allets are also very popular. A survey indicates that % of the respondents made payments through Google allet. PayPal was the most popular service with a % percent usage rate. UROP urope is a diverse payment market. Credit card sales are becoming increasingly popular, but many customers still prefer real-time banking options where they are redirected to their online bank accounts to submit payment. ome payment methods are pan-uropean while others are localized per country. % Most uropean countries have alternative payment methods based on local preference.

6 A Guide to FRAC Carte Bleue accounts for % of all e-com transactions in France. Carte Bleue recently introduced a voice authorization security mechanism to ensure greater ecommerce cyber security. Other credit cards are used in France, in addition to PayPal. TH THRLAD In the etherlands, idal is a popular payment method in online stores. hen checking out, the customer authorizes the prefilled payment instruction. Once authorized, the amount due is debited from their account and transferred to the merchant s bank account. %

7 ORDIC COUTRI In Finland and weden, real-time bank transactions account for up to % of the market share. ach bank offers its own real-time banking solution. Klarna is a major payment method offered to more than, e-stores in weden, orway, Finland, Denmark, Germany, the etherlands and Austria. Klarna, which provides payment services for online storefronts, assumes store claims and handles customer payments. About % of all e-commercial sales in weden go through Klarna. UK Almost half of all online transactions are paid by credit card. Debit cards account for some % of e-commerce payment. PayPal is the country s third most popular online payment method. hile alternative payments methods are not yet widespread, the new Zapp digital payment ecosystem is expected to have significant impact on online payments. Zapp puts near real-time payments on buyers mobile phones through their existing mobile banking application. %

8 PA-UROPA PAYMT The OFORT payment platform offers currency conversion and is used in uropean countries (Germany, Austria, witzerland, the UK, Italy, pain, Poland, Hungary, lovakia, and the Czech Republic). This method does not require a second account (wallet) or registration. A multi-level authentication process and one-time validity ensure secure transactions. PA (ingle uro s Area) is a uropean Union payment-integration initiative currently in formulation: Its aim is to simplify bank transfers denominated in uros. PA will handle credit transfers and direct debits. JAPA In Japan, when it comes to online shopping, payment method mistrust is a big issue. Many customers prefer to pay for online goods with cash at convenience stores called Konbinis. After credit cards, Konbinis constitute % of the market. %

9 CHIA Alipay dominates online payments in China, claiming % of the market share. This platform recently launched a mobile wallet application, offering online-to-offline payments. The widespread Payase solution enables comprehensive services including mobile payments via M, internet banking, call centers and PO terminals. Another popular payment form is cash on delivery. In addition, UnionPay credit cards play a central payment role for merchants entering the Chinese market. % RUIA The Russian Federation's most popular payment method is Qiwi, with self-service kiosks open /. They are located at malls and on the streets. s can also be made on I PC terminals, which are widely used in mobile dealer shops. The popular Yandex payment service enables merchants to accept the most popular payment methods in Russia and other CI countries: bank cards, credit cards, Yandex.Money, and ebmoney e-wallets. Currently, over, online stores accept Yandex. Money and % percent of Russians regularly use it to make payments. %

10 A Guide to IDIA Internet bank payments are the preferred choice in India, but prepaid cards and cash payments are also widely used. Mobile payments are rapidly gaining popularity in this region, as well. AIA PACIFIC Mobile payment systems are on the rise in the Asia-Pacific region, with over two-thirds of those acquainted with the methods using digital wallets and M payments in.

11 LATI AMRICA In Latin America, local and regional online payment sites still hold the most trust. DineroMail and MercadoPago specialize in the Latin American market. The greatest cause of online abandonment in Mexico, Peru, Argentina and Colombia is mistrust and a fear of security risks. BRAZIL Many Brazilians have fairly low credit card limits, so almost half of online purchases are made via credit card purchases in installments. Boleto Bancário is another popular payment method in Brazil. The payment process is comparable to wire transfer and cash payment methods. After receiving a prefilled Boleto Bancário bank slip, users can either pay online with cash at any bank branch or via authorized processors such as supermarkets or a regular banking point.

12 AFRICA In Africa, the mobile payment market is more popular than banking services; in fact, mobile payment users already outnumber bank account holders. The M-Pesa mobile-phone-based money transfer and micro-financing service enables users to deposit, withdraw and transfer money using a mobile device. Users can deposit money into an account stored on their cell phone, send balances using PI-secured M text messages including sellers of goods and services, and redeem deposits for cash. TH MIDDL AT fraud, non-delivery and counterfeiting are the main security concern for Middle astern online shoppers. Between -% of all online transactions in the Middle ast are Cash on Delivery (COD).

13 About Zooz Zooz provides a payments platform designed to help merchants maximize their payments performance. It offers the flexibility to connect with multiple financial institutions, seamlessly integrate acquirers, e-wallets and alternative payment methods, and intelligently route transactions between acquirers. Zooz consolidates and analyzes all payment data to provide valuable information to merchants, enabling them to personalize customer experiences online and in-store. It is the partner of choice for any business seeking to extend reach, reduce decline rates, increase revenues, maintain strong customer relationships and meet the challenges of the dynamic global market. For further information please go to Contact: U Office +--- UK Office +-()-- Israel R&D Center +-()-- Zooz. All rights reserved.