How ZenGroup Increased Sales Revenue Significantly in 5 Existing Markets with Tazapay’s Local Payment Methods

Background

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ZenMarket, a part of the ZenGroup, is a Japan-based e-commerce company that connects international shoppers with Japanese products. It offers a marketplace that allows users worldwide to buy from popular Japanese retailers, including Rakuten, Yahoo! Japan, and Amazon Japan. ZenMarket simplifies cross-border shopping by consolidating orders, handling shipping, and providing customer service in multiple languages. Their services make Japanese products more accessible to a global audience, streamlining the purchase and delivery process for customers abroad.

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Opportunities

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1. Fragmented Payment Partners: Integrating a wide variety of local payment methods and region specific options, which can be both technically complex and time-consuming to manage individually.
2. Cross-Border Payment Complexity: Dealing with currency conversions, regulatory compliance, and payment security. 
3. Transaction Auth Rates: Limited payment options resulted in lower conversion rates and no possible alternative payment options to retry.
4. Operational Efficiency: Managing multiple payment providers for different regions can be resource-intensive, requiring additional manpower and technology infrastructure.
5. High Costs and Cards Risk Exposure from Chargebacks: Managing the high chargeback ratio from credit card payments increased operational costs and lowered authorisation rates for ZenGroup, exposing the platform to greater fraud risks common in global e-commerce.

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Solutions

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1. One Integration: ZenGroup enabled payments across multiple countries and gained access to key local payment options in 5+ markets– all through a single, streamlined integration with Tazapay.
2. Real-Time FX Management: Tazapay performs currency conversions at the time of receiving funds, enabling ZenGroup to effectively manage FX risk by eliminating exposure to currency volatility between transaction completion and settlement.
3. Advanced Security and Risk Management: With Tazapay's internal risk engine, ZenGroup benefits from robust fraud detection and management, helping to reduce false disputes and ensure secure, reliable transactions.
4. Multiple Payment Options: Tazapay’s offering of various alternative payment methods (APMs) has significantly increased the chances of conversion and improved payment success rate. When buyers face issues with a specific option, Tazapay offers multiple alternatives, reducing cart abandonment and driving sales growth for ZenGroup. Additionally, there’s no need for local entities for global payment collection.
5. Easy & Flexible Integration: With Tazapay’s single integration offering multiple payment solutions, ZenGroup can go live quickly with new payment methods across markets. This streamlined setup enables rapid market entry, leading to an increase in sales and simplifying expansion efforts.

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Results

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• Market Expansion: ZenGroup expanded from 2 markets to 5 markets with Tazapay’s local payment solutions.
• Payment Volume Growth: With increased market share, ZenGroup grew their monthly transaction volume with Tazapay by 10X.
• Seamless Payment Method Expansion: A single integration allowed ZenGroup to easily add payment methods across new markers without needing additional local entities.
• Increased Revenue: With competitive pricing of APMs, ZenGroup was able to significantly increase their bottom line and substantially lowered their transaction fee.
• Reduced Chargebacks with Alternative Payment Methods (APMs): Tazapay’s integration of Alternative Payment Methods (APMs) helped ZenGroup reduce chargeback rates and fraud exposure. By offering secure, region-specific payment options, APMs minimised the reliance on credit cards, lowering transaction costs and improving auth rates.

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Conclusion

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With Tazapay’s seamless integration, ZenGroup successfully expanded to new markets, improved their payment efficiency and scaled their transaction volume by a significant amount with Tazapay. The flexibility of Tazapay’s solution allowed ZenGroup to add multiple local payment options based on the market expansion without the need of local entities, ensuring smooth and scalable growth trajectory. Tazapay’s ability to simplify cross-border payments and optimise conversion rates was instrumental in ZenGroup’s global success.

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