British-based online merchants could be missing out on potential revenue from euro customers if they do not migrate to the Single Euro Payments Area ahead of the UK deadline. With research commissioned by international electronic payment specialists PPRO Group citing that 53 per cent of UK consumers choose not to complete an online purchase due to preferred choice of payment method not being made available; a familiar, trusted and consistent payment process whatever territory you are in is crucial to improving conversion rates and encouraging global growth.
Designed to make cross-border euro payments as cheap and straightforward as domestic ones, the UK has until 2016 to adhere to the regulations. However, with all other countries in the eurozone needing to comply by today , UK businesses could be missing out on valuable transactions by waiting another two years.
“Although not bound by SEPA regulations just yet, the UK could find itself increasingly isolated by not joining its EU counterparts and lose out on pan-European trade as a result. The value of a simple and trusted payment process can’t be ignored, with our own research finding that over half of UK consumers would buy more from Europe if it was easier to use familiar payment methods. As well as making it simpler for the consumer, businesses can also benefit from getting ahead, with SEPA methods making it cheaper to send and receive euro payments,” comments Tobias Schreyer, Co-founder and Chief Commercial Officer at PPRO Group.
To help UK companies reap the benefits of a SEPA compliant payment method, PPRO has launched a simplified process for online direct debits. The SEPA Direct Debit scheme for recurring payments enables online merchants to receive international payments and gives buyers the opportunity to pay via SEPA direct debit for recurring payments, including regular mortgage, rent payments or mobile phone bills. For the merchant, the SEPA-compliant system also reduces the risk of reversal, by ensuring mandates are issued correctly and less likely to be overturned due to an error.