Handling International Transactions: How to Integrate Shopify with Global Payment Gateways

Expanding your e-commerce store to an international audience is a key growth strategy for many businesses. However, handling international transactions presents unique challenges, such as managing different currencies, local payment preferences, and international fees. To successfully sell to customers around the globe, Shopify merchants must integrate global payment gateways that can support various currencies and payment methods, offering a seamless checkout experience for international buyers.

In this article, we’ll explore how Shopify merchants can integrate global payment gateways to handle international transactions, and why doing so is crucial for expanding their customer base and driving global sales. We’ll also look at a real-world use case where a fashion retailer successfully integrated global payment gateways such as Adyen and Wise, which helped them grow their international sales significantly.

The Importance of Global Payment Gateways for International Sales

When selling to customers in different countries, it’s essential to offer a payment experience that is tailored to their preferences. Global payment gateways enable merchants to accept payments in multiple currencies and support region-specific payment methods, making it easier for international customers to complete purchases.

Here’s why integrating global payment gateways is vital for handling international transactions:

1. Support for Multiple Currencies

Global payment gateways allow your Shopify store to accept payments in different currencies, making it more convenient for international customers to pay in their local currency. This eliminates the need for customers to manually calculate currency conversions, creating a smoother and more transparent checkout experience.

2. Localized Payment Methods

Payment preferences vary by region, and relying solely on credit card payments may alienate customers in some countries. By integrating global payment gateways, you can offer localized payment options such as Alipay in China, iDEAL in the Netherlands, or Sofort in Germany, catering to the payment habits of your international customers.

3. Reduced Transaction Fees and Currency Conversion Costs

Using global payment gateways can also help reduce international transaction fees and unfavorable currency conversion rates. Many gateways offer competitive rates for cross-border transactions, enabling you to save on fees while providing a cost-effective solution for international customers.

4. Increased Trust and Convenience

Offering well-known, trusted payment methods in different regions can increase customer confidence in your store. When customers see familiar payment options, they are more likely to trust your website and proceed with the transaction.

How to Integrate Shopify with Global Payment Gateways

Shopify makes it easy to integrate with various payment gateways that support international transactions. Follow these steps to set up global payment gateways on your Shopify store and start accepting payments from customers around the world.

Step 1: Identify Your Target Markets

Before choosing global payment gateways, identify the countries or regions where your international customers are located. Understanding your target markets will help you determine which currencies and payment methods to support. For example:

• If you’re targeting customers in Europe, look for gateways that support local options like iDEAL or SEPA.

• For customers in Asia, consider payment methods like Alipay or WeChat Pay.

Step 2: Choose the Right Global Payment Gateways

Once you’ve identified your target markets, research and select global payment gateways that align with the needs of your customers. Some popular global payment gateways include:

• Adyen: Adyen is a popular global payment solution that supports over 250 payment methods and more than 150 currencies. It’s known for its ability to provide localized payment methods, such as AliPay and iDEAL, and offers transparent pricing for international transactions.

• Wise (formerly TransferWise): Wise is known for offering low-cost international transfers and multi-currency accounts, making it an excellent option for managing payments across different regions. With competitive currency conversion rates and low fees, it’s a cost-effective solution for international merchants.

• PayPal: PayPal is one of the most widely recognized global payment gateways, supporting multiple currencies and providing buyer protection, which can increase trust among international customers.

• Stripe: Stripe is another powerful payment processor that supports multiple currencies and offers international payment options. It also integrates seamlessly with Shopify, making it easy to manage payments from different regions.

Step 3: Integrate the Payment Gateways with Shopify

To add a global payment gateway to your Shopify store, follow these steps:

1. Log in to your Shopify Admin Dashboard.

2. Go to Settings and click on Payments.

3. In the Alternative Payment Methods section, click Choose Alternative Payment.

4. Search for the global payment gateway you want to integrate (e.g., Adyen, Wise, or PayPal) and click to add it.

5. Follow the instructions to configure and connect your payment gateway to Shopify. You may need to provide business details and bank account information to complete the setup.

Step 4: Set Up Multiple Currencies

Shopify allows merchants to sell in multiple currencies using Shopify Payments. To enable multiple currencies:

1. Go to Settings > Payments > Shopify Payments.

2. In the Currencies section, click Manage.

3. Add the currencies you want to support, and Shopify will automatically display product prices in your customers' local currencies based on their location.

Step 5: Test the Checkout Experience

After setting up your global payment gateways, it’s essential to test the checkout experience to ensure everything works smoothly. Conduct test transactions using different currencies and payment methods to verify that customers from different regions can complete their purchases without any issues.

Benefits of Using Global Payment Gateways for International Transactions

Integrating global payment gateways with your Shopify store offers numerous benefits, especially for merchants looking to expand their reach to international customers. Here are some of the key advantages:

1. Increased Global Reach

By offering a variety of international payment options, you can make it easier for customers from different regions to shop at your store. This opens up new markets and increases your potential customer base, driving global sales and revenue growth.

2. Improved Customer Experience

Customers are more likely to complete a purchase when they can pay in their local currency and use their preferred payment method. Global payment gateways provide the flexibility and convenience customers expect, leading to a smoother checkout experience and higher conversion rates.

3. Lower Transaction Fees

Many global payment gateways offer more favorable transaction fees and currency conversion rates compared to standard payment processors. This can result in cost savings for both you and your customers, making your products more competitively priced in international markets.

4. Enhanced Security and Trust

When customers see trusted global payment options, such as PayPal or local payment methods like AliPay, they feel more secure in completing their purchase. Global payment gateways also provide robust security features, including encryption and fraud detection, to protect sensitive customer information.

Real-World Use Case: How a Fashion Retailer Expanded Globally with Adyen and Wise

To illustrate the benefits of integrating global payment gateways, let’s look at a real-world example of a fashion retailerthat successfully expanded its international sales.

The Challenge

The fashion retailer had a growing international customer base, but they struggled to offer localized payment methods and handle multi-currency transactions. Customers from different countries found it difficult to pay in their local currency, and the retailer was incurring high transaction fees for cross-border sales. These challenges limited the retailer’s ability to effectively scale their global operations.

The Solution

To address these issues, the retailer decided to integrate Adyen and Wise as their global payment gateways:

• Adyen: Adyen’s platform allowed the retailer to offer localized payment options such as AliPay and iDEAL, making it easier for customers in regions like China and Europe to complete their purchases. Adyen also supported multiple currencies, ensuring that customers could pay in their local currency.

• Wise: The retailer used Wise to handle currency conversion and cross-border payments, benefiting from low fees and competitive exchange rates. This helped reduce transaction costs and improved the retailer’s margins on international sales.

The Results

After integrating Adyen and Wise, the fashion retailer experienced significant growth in their international business:

• Expanded Global Sales: The retailer saw a surge in international sales as customers from different countries were now able to pay using their preferred payment methods in their local currencies.

• Reduced Transaction Costs: By leveraging Wise’s low-fee international transfers, the retailer was able to lower transaction costs, increasing profitability on cross-border sales.

• Improved Customer Experience: Offering localized payment options and multi-currency support made the checkout process more convenient for international customers, leading to higher conversion rates and repeat business.

Conclusion

Integrating global payment gateways is essential for Shopify merchants who want to expand their reach and tap into international markets. By offering support for multiple currencies and localized payment methods, you can create a seamless checkout experience that appeals to customers from around the world.

As demonstrated by the fashion retailer in our use case, leveraging global payment gateways like Adyen and Wise can lead to increased global sales, reduced transaction costs, and improved customer satisfaction. Whether you’re targeting customers in Europe, Asia, or beyond, integrating the right payment gateways can help you unlock the potential of international e-commerce and drive growth for your Shopify store.