1. 7 Payment Strategies for
International Direct Mail
Success
Brian Weekes
VP International Development
PacNet Services Ltd

2. The Global Economy Today
The UK is a small part of the global economy
Emerging economies will add 100 million new
middle class consumers per year over the next 5
years.

3. 1 / Accept Payment in Local Currency
• Increase response by 25%
to 200% depending on
market and demographic.
• International buyers simply
don’t have access to Pound
Sterling payment devices.
• A Pound Sterling Bank Draft
will cost an international
customer £5.00 or more to
purchase plus the bank’s
exchange fees.

4. 2 / Set Your Price
• What do local
businesses charge for
similar products and
services?
• Even exchange, higher
or lower margin?
• Consult indexing tools
(IKEA Billy Bookcase or)

5. The Big Mac Index
• The Economist’s Big
Mac Index can serve as
a rough guide to local
pricing.
• Or look at the local
price of Ikea’s
ubiquitous Billy
bookcase.

6. Price of a Burger
• The price of a burger or a
bookcase won’t directly
relate to the price of your
product but it serves as an
indicator of what the
market will bear.
• Americans pay US$3.58
• The Swiss pay US$6.30
• South Africans pay US$2.46

7. 3 / Build in a Buffer
• In mildly volatile climates,
consider padding your price
by 2% to give yourself a
little insurance.
• Currency strengthens, you
win.
• Currency weakens, you’re
protected (for a little bit)

8. 4/ Understand Payment Preferences
in each Country
Cash or Credit?
Credit card is the favourite
online payment method for
most countries, but mail
order payment preferences
vary from country to
country – and generation
to generation.

9. Local Currency Payment options
Mail Order:
2. Cheques
3. Postal Orders
4. Credit / Debit Cards
5. Direct Debit
6. Bank Transfer
7. Cash
8. COD
Telephone:
1. Credit / Debit Card
2. Direct Debit
3. COD

10. Country Cheques Cards Bank Direct Debit
Transfers
Germany 0.6% 14.5% 36.2% 48.3%
Netherlands 0% 37.8% 31.8% 26.5%
Italy 12.5% 39% 32.1% 14.9%
France 23.8% 40% 17% 19%
Belgium 0.5% 41% 42.8 11.4
U.K. 10.7% 48.4% 21% 19.9%
U.S.A 28.6% 54.5% 5.7% 10.4%
Canada 14.8% 65.3% 11.9% 8.1%
Switzerland 0.1% 38.2% 56.4% 3.8%
Non-cash Retail Payment Preferences
Relative importance of payment instruments in %
of total transactions
Source Bank for International Settlements

11. 5/ Convey pricing as simply as possible
Simple order form
can be used for
multiple
countries:
Easy to laser
subscription form
for CANADA
Cheques accepted
in Canadian
dollars
Mailed to
Canadian mailbox

12. Localized design
appropriate for key
markets.
Priced in Indian Rupees.
Range of payment
options requires space.
Cheque, direct debit and
credit cards accepted.
Mailed to an Indian
mailbox.

13. Multi-national Order Form offers prices in three currencies simultaneously.
USD is the default for miscellaneous countries. If you must price in USD for a
multi-national campaign, be sure to request USD drawn on a US bank.

14. Offer more payment options where
appropriate
• For mail order, balance
simplicity of the order
form with choice for
your customer.
• Accept cheques where
cheques are used.
Additionally, offer
credit/debit card plus
DD options where
popular.

15. 6/ Efficient International Payment
Implementation
• DIY – (as done by Amazon)
– Opening your own international bank accounts and
negotiating local merchant service agreements may
significantly lower cost of bank fees, but requires large
upfront investment, infrastructure and accounting
resources.
• Payment Service Provider
– Contract with payment processor with international
capabilities for optimum convenience and speed of
turnaround. Services offered vary from company to
company. Lowest upfront costs.

16. 7 / Be Aware
• Cheque validity periods
differ from country to
country – cash your
cheques in a timely manner.
• Depending on your product,
be aware of fraud. Some
countries have a better
reputation than others.
• Consult with local banks or
a payments expert at your
Payment Service Provider
for guidance.

17. Questions

18. Thank You!
Brian Weekes,
PacNet Services Ltd.
Brian@PacNetServices.com
TFM&A Stand F42