Stripe Offers Adaptive Pricing to APAC Merchants
Stripe said it has tested the effectiveness of adaptive pricing in the US, UK, Canada and the European Union, and found that it led to an average 17.8% increase in cross-border revenue for businesses.
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Stripe says it wants to help merchants show their buyers prices in local currencies.
To that end, the payments company announced that it is introducing adaptive pricing for businesses in Asia Pacific and Latin America, letting businesses automatically show pricing in local currencies for buyers in more than 150 countries.
“Online shoppers are purchasing more goods internationally, but it’s difficult for them to pay how they want and are often in the dark about how much they’ll be charged,” the company said in a news release.
“And it’s complicated for merchants to show their customers how much they’d be paying in their local currency and with their preferred payment method. For example, to enable some local payment methods for their buyers, merchants must show prices in those buyers’ local currencies.”
Stripe said it has tested the effectiveness of adaptive pricing in the US, UK, Canada and the European Union, and found that it led to an average 17.8% increase in cross-border revenue for businesses. And 90% of customers checked out in their local currency when given the choice.
Offering people more choices when it comes time to pay can help cultivate relationships with consumers. According to last year’s “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,” 16% of consumers cited the ability to use their preferred payment methods as a factor influencing their decision on where to make their most recent purchase.
