Various choices of payment methods for cross-border e-commerce and Southeast Asian e-commerce

Payment method occupies an important position in cross-border e-commerce, which directly affects the actual income and risk sharing of both parties to the transaction. Under different payment terms, although the apparent price paid remains the same, the actual expenses and income of the buyer and seller may be different. Therefore, negotiating parties should strive to obtain payment terms that are favorable to them.

In international trade in goods, payment methods are mainly divided into cash settlement and non-cash settlement. Currently, most cross-border e-commerce adopts non-cash settlement, and clear regulations need to be made on the instruments used, such as bills of exchange, cashier’s checks and checks. The determination of the payment time is also crucial. A specific payment time needs to be agreed upon based on the capital turnover status of both parties to avoid future risks. In addition, the choice of payment currency is also very important. It is usually recommended to choose currencies that are easy to convert and whose currency value is relatively stable to reduce potential exchange rate risks.

The payment methods in the Southeast Asian e-commerce market reflect the unique challenges and opportunities in the region. In Southeast Asia, especially Vietnam and the Philippines, more than 80% of e-commerce companies provide cash on delivery services, while in Indonesia, Vietnam and Thailand, bank transfers are also popular, with the proportions in these three countries being 94%, 86% and 79 respectively. %. In addition, consumers in Southeast Asia tend to shop during working hours, and the phenomenon of multi-channel shopping is becoming more and more obvious. Consumers usually search and compare online, and finally choose the shopping method that best suits their own interests.

Payment methods such as remittance, collection and letter of credit have their own characteristics in global trade. Remittance is the most intimate payment method and is suitable for partners with high trust; collection uses banks as intermediaries to mitigate risks; Letter of credit is the safest payment method and involves the credit support of two banks. Installment payments are gaining traction in Southeast Asian markets, especially in Vietnam and Indonesia, indicating that consumers are more flexible in their payment methods.

To sum up, whether in cross-border e-commerce or the Southeast Asian e-commerce market, understanding different payment methods and consumer preferences is crucial for companies that want to enter this market.