SANTA CLARA, Calif.–(BUSINESS WIRE)–Sept. 12, 2022–
Citcon Inc., the leading payment provider enabling global commerce at scale, today announced the results of a new global survey of 500 top merchants in the United States, Canada and the United Kingdom, revealing the opportunities and challenges of driving e-commerce in the Asia-Pacific (APAC) region. The Emerging APAC Opportunity, developed in conjunction with PYMNTS, reveals that while more than 50% of all APAC e-commerce purchases are abandoned before payment, merchants agree that accepting local payment options at checkout could reduce this number by half.
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Global merchants report that over 50% of online sales to APAC customers are abandoned before completion. According to The Emerging APAC Opportunity report by Citcon and PYMNTS, offering local payment options can help merchants significantly reduce cart abandonment rates. 500 global business leaders shared their insights on the potential of the APAC market and how to maximize sales in the world’s fastest growing e-commerce market. (Graphic: Business Wire)
APAC countries currently account for almost three-quarters of total global retail growth and around two-thirds of online growth. From 2014 to 2019, the compound annual growth rate of retail sales in APAC more than quadrupled compared to the rest of the world, and online sales growth nearly doubled in the rest of the world. The Emerging APAC Opportunity report highlights traders’ perspective on this potential market growth.
- 70% of all merchants surveyed expect APAC sales to increase over the next three years.
- 37% of all merchants expect sales growth to reach or exceed 50%
Yet, according to the report, more than half of all e-commerce shopping carts in APAC are currently abandoned before purchase, inhibiting this growth potential. Merchants already operating in the Asia-Pacific region identified the top two factors underlying high cart abandonment rates as cost factors (60%) and payment friction (47%). While cost factors such as shipping and competitive pricing can often be beyond a merchant’s control, reducing payment friction is highly addressable.
- 47% of merchants currently selling to customers in Asia-Pacific believe shoppers abandon their cart because they can’t use their preferred payment method or have payment security issues
- Only 13% of merchants currently selling to APAC customers accept domestic global wallets
- The small minority of merchants who currently offer localized payment options report 32% lower cart abandonment rates than their counterparts who don’t.
“Merchants recognize the critical role that local payments will play in their success in Asia-Pacific markets,” said Chuck Huang, Founder and CEO of Citcon. “Seventy percent of global merchants we surveyed predicted that cart abandonment rates could be cut in half simply by providing consumers with reliable local payment systems. Expanding payment options to better serve local APAC consumers has the potential to unlock exponential growth for merchants of all types. »
About the APAC Emerging Opportunities Report
The Emerging APAC Opportunity Report was developed by Citcon in conjunction with PYMNTS.com. Findings are based on responses to a survey of 500 global merchant business leaders in the US (350), Canada (50) and UK (100) collected between May 16 and June 28, 2022 Thirty-six percent of companies generated less than $20 million, 35% generated between $20 and $100 million, and 29% generated more than $100 million in annual revenue. The survey results were compiled by PYMNTS.com analysts. To access the full report and data tables, please visit: https://www.pymnts.com/study/emerging-apac-opportunity-shopping-ecommerce-local-payments-cart-abandonment
Founded in 2015, Citcon’s fintech platform enables seamless global commerce at scale by connecting businesses around the world to more than 150 mobile wallets, including local and alternative payment methods. Citcon integrates with point-of-sale and e-commerce systems such as Toshiba, Oracle, Cegid, Shopify and SAP and is currently deployed on over 30,000 merchant sites and locations, including major brands such as L’Oréal, Tumi, Texas Instruments, Revolve, Macy’s and Panda Express. In October 2021, Citcon closed a $30 million Series C funding round. The company is backed by leading global investors Norwest Venture Partners, Cota Capital, Sierra Ventures, Sonae and East-West Bank. Citcon has five regional offices in the United States, Canada, Europe and Asia to serve its global customer base. Learn more at https://www.citcon.com.
PYMNTS.com is where the best minds and content meet on the web to learn about “What’s Next” in payments and commerce. Our interactive platform is reinventing the way companies in the payments industry share relevant information on the initiatives that are making the news and shaping the future of this dynamic sector. Our data and analytics team includes economists, data scientists and industry analysts who work with companies to measure and quantify innovations at the forefront of this new world.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220912005219/en/
CONTACT: Tony Labriola for Citcon
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: TECHNOLOGY FINANCE FINTECH BANKING PROFESSIONAL SERVICES SOFTWARE INTERNET RETAIL ONLINE RETAIL
SOURCE: Citcon Inc.
Copyright BusinessWire 2022.
PUBLISHED: 09/12/2022 10:00 a.m. / DISK: 09/12/2022 10:02 a.m.
Copyright BusinessWire 2022.