China’s E-Commerce market offers abundant opportunities for online merchants – but it also comes with its challenges. China is among the countries with ecommerce growth and potential. The Chinese consumer spends online – including travel, electronics, apparel, shoes, books, and health and beauty products. Indeed, China is the world’s second largest market for online payments with over 100 billion US dollars annually (datamonitor).
The Chinese market is indeed lucrative and enticing. But it comes with obstacles. Firstly, a merchant needs to gain consumers’ trust. Chinese consumers currently shop at marketplaces like T-Mall (B2C) or Taobao (C2C) and trust these marketplaces especially for brands that they are not familiar with. Merchants can leverage from these marketplaces to gain consumers trust and gain brand awareness. Merchants can combine having an online store in T-Mall that offers sales and promotions and a separate online flagship store. To win your customers, make sure your online store is localized with locally preferred payment methods.
The payment process is completely different for Chinese consumers:
Fast and reliable payment processing:
Computop has developed a local Paygate solution in China which offers fast payment processing with optimal reliability. This is crucial as internet connectivity in China can often be unreliable and slow. Through Paygate China and a data center in Shanghai, payment transactions are processed seamlessly and smoothly for your online store.
Local and global solutions:
Computop offer a connection to the top 4 Chinese PSPs’ cross-border payment platform to facilitate payment transactions in China and settlement in over 10 currencies including GBP, EUR or USD outside mainland China. Computop is connected to both international and domestic payment platforms.
Customers who choose China Union Pay credit card payment are asked to choose the issuing bank manually and then their local bank to complete the payment via an online bank transfer. Since the typical western Visa/Master Acquirer-CUP-Issuer scheme doesn’t exist in China, a payment service provider (PSP) in China must connect directly to online banks. To obtain a substantial coverage at a cost effective price, it is recommended that an online retailer connect to various local PSPs. Computop provides the facility to connect to the 4 most important Chinese PSPs Alipay, 99bill, Chinapay and Tenpay that covers almost 100% of the bank customers.
Least Cost Routing:
Computop reduces your payment transaction fees significantly via its least cost routing solution. Computop’s Paygate China is able to analyze and determine which bank offers the lowest fee for each transaction.
Local payment methods:
Chinese consumers prefer online bank transfers, which is similar to a giropay in Germany or iDEAL in the Netherlands. Beside online bank transfer, Computop also offers all the other relevant payment methods such as Alipay wallet, Chinapay’s UPOP.
Expansion to China means gaining trust of Chinese customers. You succeed when you know the local habits.
Learn important facts on e-commerce in China.
Which payment methods are famous in Asia and what do you need to know for a successful expansion?
Get an insight in payment behaviour in Asia.