Stripe introduces Adaptive Pricing to aid international sales

Stripe has launched its new Adaptive Pricing solution, which allows businesses in Australia and throughout the Asia Pacific region to display prices in local currencies to customers in over 150 countries. This move aims to help companies streamline international sales and address the challenges that come with cross-border transactions.

According to a 2023 study conducted by Stripe, 66% of businesses are planning to expand their market reach to new countries by 2025 but cite accepting payments in local currencies as their most significant technical hurdle. Adaptive Pricing is designed to remove the need for businesses to manually price in multiple currencies and keep pace with fluctuating exchange rates.

Valerie Wagoner, Head of Product, APAC at Stripe, highlighted the importance of localised payment experiences for international shoppers. "Online shoppers are purchasing more goods internationally, especially in Asia Pacific. In Singapore alone, 74% of consumers are open to buying cross-border digital services today. This presents a massive opportunity for businesses who are able to personalize and localize the payment experience," Wagoner explained.

Stripe's findings also indicate that customer preference is strongly skewed towards paying in their local currency, with 90% of customers choosing this option when it is available. The company has noted that businesses using Adaptive Pricing have seen an average 17.8% increase in cross-border revenue, underscoring the value of localising payment processes.

Adaptive Pricing is available to businesses in Australia, India, Hong Kong, Japan, Malaysia, New Zealand, Singapore, and Thailand. Companies using Stripe's Checkout or Payment Links services can activate the new feature directly from their dashboards with a single click, simplifying the process of adapting to local currencies.

The launch of Adaptive Pricing comes as Stripe's recent report indicates a growing openness among consumers and businesses towards international commerce. In Australia, 68% of consumers are reported to be open to purchasing international goods. Given the diverse and expanding nature of the global market, tools such as Adaptive Pricing are expected to play a crucial role in facilitating smoother and more efficient transactions between buyers and sellers across borders.

Stripe's initiative is expected to relieve some of the technical and logistical burdens faced by businesses when expanding internationally. By ensuring prices are displayed in the buyers' preferred currencies and accommodating various local payment methods, Stripe aims to create a seamless shopping experience for global consumers and drive growth for businesses venturing into new markets.