According to new analysis from inclusive payments platform, Ecommpay, a dynamic checkout that presents local currency for card processing for where the customer is located can improve conversion rates, with currency choice boosting conversion by an average of 8%. 

As Arturs Zaremba, Product Owner at Ecommpay explains, retailers could be missing out on growth by not catering to specific market’s payment needs. “Uncertainty around the final cost of an item due to unclear currency conversion rates and potential fees can make customers less likely to convert. Retailers operating in multiple countries should, therefore, consider displaying prices in local currencies or enabling a currency choice feature to reduce confusion and give customers more confidence in their purchase. These options also require minimal development from the merchant.” 

Recent research commissioned by Ecommpay revealed that just half of online retailers offer customers checkout in their local currency, potentially limiting conversion rates. The study, 'eCommerce Checkouts: UK Retailers Reveal Their Checkout Strategy and Performance', was conducted in partnership with IMRG among its diverse retail community.  

The report highlighted that, on average, customers who do not complete an online purchase drop out of the checkout journey after 90% of the average time it takes to complete a checkout. This suggests the final stage – payment – is a serious point of friction. Supporting this theory, average conversion rates are higher where more Express Checkout options are available. And separate consumer research by Ecommpay found that 72% of consumers are likely to abandon checkout or seek alternative options if their preferred method of payment is not available. 

Providing customers with a currency choice on the payment page, which Ecommpay facilitates, allows them to choose the currency in which they are willing to pay.  This provides flexibility, while matching the purchase currency with the currency of their card. Ecommpay can also provide merchants with the technical capability to define currency by card Bank Identification Number (BIN) – the Currency Choice list will dynamically adjust to show only the most relevant currencies based on the shopper's card BIN, reducing the length of the list of currencies and simplifying the selection process.  

“Transparency, clarity, and simplicity are key to removing payment barriers”, added Arturs Zaremba. “Visual cues, such as a progress bar, can help manage expectations, while transparent shipping costs and a range of payment options and currencies reduce frustration and minimise drop-offs. The checkout should also be accessible and user-friendly for all, including those with disabilities and those using mobile or desktop devices.” 

With a wider range of currencies available to customers, merchants can unlock new market opportunities by catering to international customers, offering seamless transactions in their local currency. Ecommpay Currency Choice supports card payments, Apple Pay and Google Pay, enhancing customer choice and satisfaction while simplifying the checkout process.  And security, regulatory compliance, and fraud risk mitigation are top priorities for Ecommpay when implementing Currency Choice.