Online merchants in the UK could be missing out on potential revenue from euro
customers if they do not migrate to the
Single Euro Payments Area (SEPA) 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 the 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 (1 August 2014), 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, for items including subscriptions and regular
purchase programmes. 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.
[i] One Poll
surveyed 1000 UK adults between 24th July – 28th July
2014
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