If you’re an Indian exporter, then you may need to care about the European market, according to an update from Razorpay.
The European Union is reportedly India’s second-largest destination for exports and is India’s third-largest trading partner, “accounting for €62.8 billion worth of trade in 2020.”
This is why you want “to make it as easy as possible for your European customers to buy from your online store.”
Given the EU’s diversity of payment instruments and habits, European shoppers might “abandon carts if they don’t find familiar and preferred digital payment methods.”
As noted in a blog post by Razorpay, this prevents many Indian businesses “from being effective in selling their products digitally and directly to prospective customers in the many countries of Europe.”
To address this issue, Razorpay has teamed up with Trustly, a European payments network that enables its 525 million users to make payments “directly from their bank accounts without using credit or debit cards.”
With the new Trustly integration, Razorpay businesses will be able “to accept payments from across the length and breadth of Europe without worry.”
As an Indian exporter, you can now “leverage the Trustly network to expand your business in Europe. And leave all payments concerns to Razorpay.”
As noted in the update, Trustly Group is “a Swedish fintech company founded in 2008. ”
It’s an open banking payment method that “allows customers to shop and pay from their online bank account, without the use of a card or app.”
Its account-to-account network “supports 6,300 banks, reaching 525 million consumers and bypassing card networks.”
To date, Trustly is “available in 18 countries: Austria, Belgium, Croatia, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Lithuania, Latvia, Netherlands, Norway, Poland, Slovakia, Spain, Sweden, and Great Britain.”
As mentioned in the announcement, chargebacks are “not possible with Trustly, as all transactions are completed by the consumer using dual-factor authentication.”
Disputes are “handled first and foremost between the consumer and the business accepting the payment.”
As explained in the blog post, the buyer “chooses Trustly as a payment method on their Razorpay checkout.”
The buyer “gets redirected to the Trustly Banking website and will be asked to select their bank.”
Buyers will then securely “log in to their bank, using their online banking credentials, and complete the payment.”
As noted in the blog post, bank transfers “allow customers to transfer money to a business’ bank account to complete a purchase.”
Traditionally, transferring funds to a company account “had to be done at a bank branch; as a result, businesses had to match incoming payments with the orders they received before they could even begin to fulfill an order, slowing down the delivery of goods and services – sometimes by days.”
With the increased popularity of online banking, “several online bank transfer options are now available.” These allow the customer “to start the transfer during the payment process on a merchant’s site while automating the payment matching for a merchant.”
This means that orders “are completed faster, and it is substantially easier for the business to track and reconcile payments.”
With Razorpay, you will “get access to the Trustly payment method without any extra paperwork or compliance.”
You don’t need “to open a foreign bank account in order to accept bank transfers from your European customers or their bank accounts.”
Some benefits of Trustly:
- Sell in Europe: Enter European markets with lower credit card coverage
- No chargeback: Avoid unnecessary chargebacks or frauds with an authorized bank transfer solution
- Strong coverage: Trustly has access to thousands of banks across some of Europe’s largest markets where the preference for bank payments is very strong among consumers, allowing merchants to sell more and faster
- Automated fast refunds: Trustly’s automated cross-border refunds encourage customer loyalty, increase in basket size, and more frequent shopping
- Instant confirmation: Unlike most other bank transfer providers, Trustly not only sees when the funds are on their way but can also monitor the general speed of settlement, which enables you to offer same-day shipping with more certainty
- Higher transaction amount: Accept a higher transaction amount than a card transaction.
- Safer than Credit Cards. There are “no chargebacks on Trustly (unlike Card payments) as all these transactions are authenticated and approved by the bank account holder.”
Razorpay is now actively working on “creating more international payment features, so you can focus on growing your international business.”
In the next few months, “watch out for B2B exports, additional payment methods, and enhanced risk capabilities to greatly improve the experience of your international customers.”