Payment Observations From 7+ Years of Global Business (Part 2)
Catch up on Part 1 here!
Support Cultural Preferences in Decision-Making
My experience working with clients namely in Hungary and Japan back up the research that culture impacts decision-making styles. For example, studies show that in collectivist cultures like Japan, decisions are often made with a focus on group consensus and respect for authority, whereas in more individualistic cultures, personal relationships can heavily influence business decisions.
Design Takeaway: Design your workflows to respect and adapt to local decision-making styles. For example, provide options for collaborative decision-making in collectivist cultures by including shared approval workflows or multi-user access. For individualistic cultures, highlight relationship-driven design features such as personalized recommendations and one-on-one communication tools.
Simplify for Lower-Tech Literacy
In developing regions, I’ve noticed various levels of tech literacy, especially with smaller businesses. Many people aren't familiar with advanced technologies, and prioritize clarity and simplicity over any fancy tech.
Design Takeaway: Focus on simplicity in interfaces, prioritize clear navigation, minimal text, and use intuitive icons. Incorporate tooltips and progressive onboarding for users unfamiliar with technology. Ensure critical actions are straightforward, avoiding reliance on assumptions about tech familiarity.
Provide Offline Payment Options
In regions with frequent power outages or unreliable internet, offline solutions are essential. Offline payment systems allow transactions to occur without requiring an internet connection at the time of the transaction.
Design Takeaway: Design payment solutions that store critical data locally and sync seamlessly once connectivity is restored. Incorporate clear messaging to reassure users that transactions will complete once the connection stabilizes. Additionally, ensure users can access transaction records offline to build trust.
Adapt Payment Cycles to Local Economic Rhythms
Different cultures have distinct cycles and timing for payments. In Latin America, for instance, the 13th-month salary affects cash flow significantly. This payment, often referred to as aguinaldo, is a legally mandated bonus in many Latin American countries, typically paid at the end of the year, and serves to enhance employees' financial stability during the holiday season.
Design Takeaway: Build flexibility into payment systems to allow for customizable billing and payout schedules. Include features that allow businesses to adjust payment timing in alignment with local economic patterns, such as end-of-year bonuses or agricultural cycles.
Promote Simple, Strong Authentication
In various parts of the world, security is paramount; yet complex verification processes can be a hassle. It is important to promote simple but strong authentication methods that enhance security without compromising user experience. This balance is crucial as users increasingly demand both safety and convenience when engaging with digital platforms.
Design Takeaway: Implement multi-factor authentication methods that feel natural for users, such as biometric verification (e.g., fingerprint or facial recognition) paired with simple PIN codes. Avoid overly complex password requirements and provide clear error messages to reduce frustration during login attempts.
Emphasize Trust and Community Connection
The importance of community and word-of-mouth trust across global markets cannot be understated. In many cultures, personal recommendations and community ties play a significant role in business relationships.
For example, Nigerian Fintech Moniepoint employ local agents that use a grassroots approach to onboard informal businesses and empower them with digital tools. Emphasizing these connections can foster loyalty and enhance customer engagement across diverse markets.
Design Takeaway: Design tools that empower agents, such as dashboards to track their onboarding progress, digital ID verification to establish authenticity, and features that showcase agent endorsements or ratings to users. This human-centered approach strengthens trust, particularly in informal or underserved markets where personal connections carry significant weight.
Final Thoughts
These observations are from my personal experience living and doing business abroad, particularly in emerging economies. Although many of these points are backed up by comprehensive UX research, I don't pretend to have all the answers or to be some sort of oracle of payment behaviours in emerging economies. I realize that the world is increasingly globalized and there is frequent cross-pollination of ideas, business cultures, and norms.
However, cultural awareness is ALWAYS going to be important when working with businesses internationally. It is primarily a sign of respect to understand and appreciate different cultures and secondly, business outcomes are more favourable when you do.
If you're looking to create culturally inclusive and intuitive payment experiences, get in touch today!
