Local Payment Methods: What They Are and How To Offer the Right Options in Each Market

Deciding to sell internationally involves more than simply translating your website and creating a new Google Ads campaign. To succeed, you need to make sure potential customers can pay with confidence. Using local payment methods instills trust, so customers feel comfortable making a purchase on your checkout page.

In each market, customers have unique payment preferences. From buy now, pay later (BNPL) plans to vouchers, each option carries different costs, risks, and benefits for the merchant. To learn more about local payment options and how to incorporate them in your company’s global operations, read on.

TL;DR

• Local payment methods are the specific ways that customers pay in different regions and countries.
• Deciding to accept local payment methods is essential for successful international growth.
• BNPL plans, vouchers, bank transfers, credit cards, and digital wallets are just a few of the most popular payment methods around the world.
• Vouchers let customers order online and pay in cash at a retail location.
• Digital wallets have rapidly grown in popularity, although each region has different wallet preferences.
• If you’re entering a new area, experiencing high cart abandonment rates, or need to build stronger trust signals, adopting local payment options can help.

While offering local payment options can lead to added complexity and costs for your company, working with an experienced payment processor can help you select the right method for each region and streamline your integration process.

What Are Local Payment Methods?

So, what are local payment methods? And how can they help your business? 

Local payment methods are the payment methods that are used in a specific region or country. Direct bank transfers, credit card payments, mobile apps, cash on delivery, vouchers, and digital wallets are just a few of the different payment methods used around the world.

As a merchant, it’s essential to accept local payment methods. If customers can’t pay for their purchases, you will lose potential sales. Local payment options help to increase trust, decrease friction, and prevent cart abandonment.

Common Types of Local Payment Options

From offshore accounts to vouchers, customers can purchase products in different ways. The following methods are just a few of the most popular local payment options around the world. To figure out which payment styles are best for your business, consider the region you will be selling in and the most common payment methods in that area.

Buy Now, Pay Later (BNPL)

BNPL is a popular local payment method that allows customers to make a purchase and pay off the balance over time. This helps you attract more customers and gives them more spending power. 

There are many types of BNPL plans you can set up. In just the United States, there were 53.6 million unique users of BNPL in 2023. Globally, the most popular BNPL companies are: 

1. Afterpay
2. Klarna
3. Affirm
4. Latitude 
5. Tabby

Vouchers

With a voucher, the customer places an order. Then, a voucher with a reference number or code is generated. Afterward, the customer takes the voucher to a convenience store to complete their payment. 

The popularity of vouchers varies from country to country. Boleto Bancário in Brazil and OXXO in Mexico are two of the most popular options.

Bank Transfers

In certain regions, bank transfers are the leading local payment option. For example, bank transfers are the second-highest payment option in South Africa, with 22% of payments completed in this manner.

In most countries, all the sender needs is the account number to send a payment. For transfers in the United States, the bank’s routing number is also required. 

Digital Wallets

Digital wallets are typically used with a smartphone app to make purchases. Usage varies from region to region. In the United States, 48% of consumers report using a digital wallet during the preceding 90 days. This payment method uses encryption to store payment data until it is used. Popular wallet options include Google Pay, Alipay, Venmo, and Apple Pay.

Cash on Delivery

Cash on delivery is a payment type where goods and services are paid for after they are delivered to the customer. Typically, cash on delivery is popular in countries where there isn’t the financial infrastructure for credit cards, digital wallets, and other payment options. Vietnam, the Philippines, Nigeria, Indonesia, and Thailand are just a few of the places where this type of local payment method is more common.

Invoices

Invoices are often used for business-to-business transactions. The business sends out an invoice that requests payment. Often, the payment must be paid within a 14-day or 30-day period. 

Regional Examples of Local Payment Methods

Throughout the world, the most popular local payment methods vary significantly. For example, vouchers are far more common as payment options in Latin America than they are in the United States. The following are just a few common payment options from each region of the world.

APAC

In the Asia-Pacific (APAC) region, digital wallets and QR code payments are two of the most popular local payment options. The region is also one of the largest markets in the world for card transactions, although BNPL and mobile payments are gaining ground. 

• Alipay: Alipay is used predominantly in Hong Kong and China. On average, there are 704 million Alipay users every month.
• Dana: Dana is popular in Indonesia. It is used for mobile, app-based, and QR code payments. By one estimate, the company has more than 180 million users.
• GCash: In the Philippines, around 94 million people use GCash’s digital wallet and mobile payment solutions.
• GrabPay: Known as Southeast Asia’s leading super app, GrabPay is an all-in-one digital wallet that lets you pay through the wallet or with a QR code for groceries, rides, bills, and more. It also includes its own BNPL plans.
• Kakao Pay: This is South Korea’s most popular digital wallet. It facilitates bill payments, peer-to-peer transfers, and mobile payments. 
• Local Bank Transfers: Local bank transfers remain an incredibly popular payment option in Asia. In Malaysia and Singapore, they are the standard payment option. Often, local bank transfers are used for e-commerce and large purchases.
• TrueMoney: In Thailand, TrueMoney currently has 32 million users. This e-wallet can be used online and in person to pay for purchases.
• WeChat Pay: WeChat Pay is a popular payment option in Asia, with large market shares in China and Hong Kong. This mobile payment and digital wallet had over 1.3 billion users in 2025.

Europe

In Europe, traditional payment options remain the most common way to pay. For instance, credit cards, debit cards, local bank transfers, and PayPal are popular options. However, alternative payment methods, like Klarna and BNPL, are gaining market share. 

As a business, it’s important to focus on the type of payment used in specific countries. For example, iDEAL handles around 60% to 70% of all online transactions in the Netherlands. Meanwhile, Przelewy24 is predominantly used in Poland. 

• Alma: Alma is known for being a popular BNPL option in France. Once a purchase is made, it can be divided into two, three, or four installment payments.
• Bancontact: This company is known for being the most popular electronic payment method in Belgium. It can be used in person, online, or in the app to process secure payments. It essentially functions like Belgium’s debit card network. 
• EPS: EPS is a popular payment method in Austria. The acronym stands for “electronic payment standard.” It is used by banks and the Austrian government to transfer funds. Thanks to its security and convenience, it is utilized by every Austrian bank and is widely used by local shoppers.
• iDEAL: iDEAL is a secure way to conduct direct bank transfers in the Netherlands. Almost all shoppers and e-commerce transactions in the country use it to carry out purchases and sales.
• Klarna: This BNPL service has been widely adopted in the Netherlands, Germany, Sweden, Austria, and Finland. It offers interest-free payment options and a range of financing plans.
• Multibanco: Multibanco is based in Portugal and serves as the country’s interbank network. When shopping online, users can pay with cash through their online bank account or at an ATM. 
• Przelewy24: Przelewy24 is the leading payment method in Poland. It allows consumers to make purchases using digital wallets or mobile payments.
• Swish: This Swedish mobile payment app allows its 8.7 million users to easily send money to friends and buy products. Whether users need to set up a recurring payment or pay with a QR code, it can be used for just about everything. Currently, 30% of people between the ages of 16 and 54 prefer to pay using Swish.
• TWINT: TWINT is a digital wallet and mobile payment app used predominantly in Switzerland for smartphone, QR code, and in-store Bluetooth payments. Currently, there are more than 6 million active TWINT users in Switzerland, and 98% of the Swiss recognize the brand name.
• Vipps MobilePay: Vipps MobilePay is a mobile payment solution and digital wallet. While it is primarily used in Norway, the platform also has users in Denmark, Sweden, and Finland. Currently, Vipps MobilePay has more than 12 million users.

Latin America

In Latin America, it’s common to pay with cash-based vouchers. Money transfers, QR codes, and digital wallets are also popular options. The type of digital wallet or voucher used varies significantly based on which country you are in.

• Boleto: Boleto involves bank-issued vouchers and barcodes. It is primarily used in Brazil. While Pix has taken over some of Boleto’s market share, it remains an incredibly popular payment method.
• Cash on Delivery: Because of economic volatility and access to banking options, cash on delivery is still a leading payment method in many parts of Latin America.
• Mercado Pago: Mercado Pago is a digital wallet that is especially popular in places like Colombia and Argentina.
• OXXO: The OXXO payment method is a popular one in Mexico. Basically, a voucher is generated when you submit an online order. Then, you can pay for the order by going to one of OXXO’s convenience stores. 
• Pix: Pix involves real-time money transfers between bank accounts. The transfers can take place through QR codes, email addresses, phone numbers, or similar keys. Currently, 76.4% of Brazilians use Pix as a payment method.

MENA

In the Middle East and North Africa (MENA) region, e-commerce isn’t quite as widespread as in other areas. However, there are still a few important digital payment methods that have taken off.

• BenefitPay: This payment solution in Bahrain allows merchants to accept debit cards.
• KNET: KNET is, by far, the leading payment solution in Kuwait. The majority of e-commerce transactions take place through this debit card network.
• QPay: QPay is the leading payment network in Qatar, but it also has operations and partnerships in other Middle Eastern and African countries. This mobile payment method allows customers to pay through their smartphone and bank account with the help of a one-time passcode. Depending on which country you are in, QPay also operates a BNPL service.
• Tabby: Tabby is known for being the largest BNPL provider in the MENA region. When a customer makes a purchase, the total is divided into four future installment payments.
• Tamara: Tamara is another BNPL provider. It is primarily used in the United Arab Emirates, Kuwait, and Saudi Arabia.

North America

North America is home to the world’s second-largest e-commerce market. While credit cards and debit cards continue to dominate U.S. and Canadian markets, digital wallets are growing in popularity. In particular, Google Pay, PayPal, and Apple Pay have gained significant market share.

• ACH Network: The Automated Clearing House (ACH) network is based in the United States and handles electronic fund transfers. In just the third quarter of 2025, 8.8 billion payments worth $23.2 trillion went through this network.
• Interac: In Canada, the national debit network is Interac. Users can use Interac to make debit card payments, transfer money electronically, and pay online at participating merchants.
• Venmo: Venmo is a popular payment option in North America, and it functions like a digital wallet. Among digital wallet users in the United States, 22% report using Venmo to complete their purchase. 

When Does It Make Sense To Use Local Payment Methods?

As your company begins to grow, you’ll likely want to expand beyond your original market. Eventually, you may move to other countries. For a successful expansion, you’ll need to figure out if your payment processor operates in the new area and what kind of payment methods you’ll be able to accept. You will most likely want to accept local payment methods if any of the following scenarios are true.

• You Are Selling in a New Area: If you are currently selling in a new country or plan on moving into a new region, you need to update your payment methods. Otherwise, you may be missing out on potential sales.
• The Region Doesn’t Have High Card Penetration: While some places rely on credit cards and debit cards, this isn’t true everywhere. If many shoppers lack a card, you’ll need to adopt local payment options instead.
• You’re Experiencing a High Cart Abandonment Rate: High cart abandonment rates can happen if the user doesn’t have an international credit card to make a purchase. Offering familiar payment options can improve trust and boost your conversion rate.
• Your Average Order Total Is Fairly High: If you sell more expensive products or have a high average order total, you may want to use BNPL plans. These plans allow customers to pay for large purchases over time, which increases access to your products.
• You Rely on Customer Trust: As you enter a market, it can be challenging to get prospects to trust your business. Providing familiar payment options helps customers feel more comfortable about buying from you.

Chargebacks Are a Concern: If you’re struggling with a high chargeback rate, you may want to use local payment methods instead. Some local options, such as vouchers, bank transfers, and ACH, can significantly reduce your chargeback exposure.

How Offering Local Payment Methods Can Boost Your Conversion Rates

For customers, local payment options feel more comfortable and convenient. Because customers are used to their normal payment method, it inspires a sense of trust. As a result, your company’s decision to offer local payments can reduce checkout friction. 

Cross-border payments are more likely to encounter issuer declines and bank risk rules. By deciding to accept local payment methods, you can boost your conversion rate through increased payment approval and better completion rates. 

More importantly, local payments are what your customers want. It is how they are used to paying, so offering this kind of option improves your customer experience. Additionally, it ensures that customers aren’t surprised by a lack of payment options when they go to checkout.

What Are the Risks Involved in Using Local Payment Methods?

Using local payment options involves risks, just like any other kind of payment. Fraud can occur with any method. For example, cash payments might not have any risk of fraudulent chargebacks, but you may still encounter fraudulent returns. 

As a business, there is always a risk involved when you increase the complexity of your payment processes. Monitoring different accounts, checkout flows, and settlement timelines can quickly become complicated. You’ll also have to figure out different approaches to refunds, chargebacks, and disputes because the entire process may have to change based on the payment type. 

What Costs Are Involved in Offering Different Local Payment Types?

Each payment type will have different costs involved. For example, digital wallets may have card-like fees set up or wallet-specific rates. With vouchers, fees are charged when you set up the voucher and when you pay at the retail branch.

Besides dealing with payment-specific fees, you may also have to deal with a foreign exchange spread, currency conversion fees, reconciliation costs, added accounting requirements, and international payout fees. You’ll have to update your embedded payments and checkout processes to incorporate the new payment methods. Additionally, you will likely need to retool your fraud prevention tools and compliance measures. 

How Do Different Local Payment Methods Impact Reconciliation?

The simplicity of the reconciliation process will depend on the payment method involved. There are a few important ways that local payment methods can change your approach to reconciliation.

• Payment Status: Payment status may be confirmed right away with certain methods. Other payment types may appear to be pending for days.
• Settlement Approach: Some payments settle in a batch, while others settle net of fees or by payment method. If you’re trying to match payments to the original order, this can make your task more challenging.
• Refund Differences: When customers ask for a refund or dispute a transaction, each payment method will likely have different requirements and a unique timeline. Unfortunately, this can make your accounting processes more complex.
• Reference Numbers: Some methods assign reference IDs that you can easily tie to orders, but other payment methods don’t.

Final Thoughts

Local payment methods are unique to the country and region where they are used. As you expand into new countries, offering local payment options is essential to gaining customer trust, improving your conversion rates, and reducing checkout friction.

Before you move into a new region, talk to an experienced payment processor about cross-border fees, local payment methods, and the type of support they can provide. International payment processors understand which payments work best in different areas and can help you accept local payment methods in each region.
To learn more about local payments in your new market region, reach out to our team of top-rated payment processing experts today.