One of the worldwide most spectacular economies belongs to Asia Pacific region. Its market is famous for significant participants diversity, but it is still quite easy to enter. Regarding the perspectives, that are opening up for foreign merchants, this direction is worth considering.
By virtue of the countries’ multiplicity, Asia Pacific region is divided into several areas according to the stage of development. To say more, different business models are implemented within the region, so as payment methods.
At first glance, such diversity may lead to a considerable confusion. But by clarifying peculiarities of each area, intention to enter the market can never go back!
China. The world’s biggest e-commerce market
The Chinese are avid Internet users. If China direction is chosen, get prepared to face the tech-savvy population. People here are found of surfing the Net with their smartphones, as a result, m-commerce has increased nearly twice by recent time.
In order to commit a purchase, customers prefer local payment systems or mobile ones. More frequently they refer to such methods as:
– Alipay – is famous for making emphasize on high level of clients’ security. Payment, conducted by customer, is kept as an escrow until the client confirms the order delivery. Before the validation, merchant is just informed about the transaction, what signifies, that the order can be dispatched. On this basis Alipay tends to be the most popular payment method in China;
– China UnioinPay – in view of the number of cards issued, UnionPay claims to be the largest card scheme in the world and, in addition, the only interbank network in the region. This fact makes the system an essential part, when entering the Chinese market;
– Tenpay – enables committing mobile payments, due to being integrated with QQ platform, which includes shopping, gaming and microblogging.
Knowledge of the main payment systems, operating in China and their implication in business will assist to enter the Chinese market without any obstacle.
Few words about Hong Kong
Unlike China, transactions by credit cards remain to be the most popular payment option here. However, China UnionPay has found its place in Hong Kong as well and it’s spread increases constantly. Moreover, Alipay scheme also gains popularity here.
What should be known about India
Despite all electronic payment methods are growing in their usage, in India the cash on delivery option still maintains its dominance. On the one side, such way of purchasing removes the burden of all checkout processes. On the other hand, merchant undertakes all the risks, connected with transfer safety, which doesn’t facilitate the whole operation.
However, such situation has its reasons. Firstly, e-commerce is quite new business direction for the country. Secondly, there is still left a fear regarding Internet reliability. In its turn cash on delivery option provides consumers confidence.
So, the primary challenge for India is to develop more benevolence towards digital payment methods. However, the country makes great efforts to achieve the target by introducing 3D Secure at that few numbers of electronic transactions. Since its implementation, results of digital payment development have already been positive. Actually, this security option has become an obligatory issue in local terms.
Japan. The fourth biggest e-commerce market
Japan is rather advanced country in e-commerce developing. The predominant position of online payment methods is kept by credit cards. One more option of high popularity here is the local system, called Konbini. It makes electronic payments being able to be completed offline. This method covers over 55 000 convenience stores across the country.
It should be emphasized, that an international acquiring in Japan is more cost effective than domestic one. So, foreign credit cards can be freely implemented with cross-border aims.
After all, Asia Pacific region inspires great hopes in business’s quick adaptation and further successful development. With the optimal approach to customers and proper payment strategy, aim achievement becomes closer, than it may seem.