Global Payment Method Diversification

The 2026 Worldpay Global Payments Report is out, and it’s a must-read for anyone who wants to understand payments. This is my analysis. 1. Global Overview: • Wallets are the entry point to commerce (56% of e-com and 33% of POS), aggregating cards, A2A, and alternative rails. • Cards are shifting from front-end to infrastructure, still driving 48% of POS and 31% of e-com. • A2A wins when tied to domestic infrastructure - but fragmentation limits global scale. • E-com is growing faster (7.5% CAGR vs 3.4% POS), concentrating future value in digital-native methods in online journeys. 2. Regional Comparison: • Western markets remain card-heavy, while Asia is already operating on alternative rails • A2A remains single-digit globally, but has scaled in LATAM (20%+) and MEA (15%), tied to domestic systems • Growth is skewed to MEA (11%), LATAM (9%), APAC (8.5%) vs. Europe/NA (~6-7%), shifting global share over time 3. POS: From Terminals to Apps: • Payment apps scale faster than the market (8% vs 3.4% CAGR) – to reach 46% of POS by 2030 • APAC has already made the shift (China 89%, India 65%, Thailand 56% POS via apps) • QR codes remove infrastructure dependency, accelerating adoption in APAC and LATAM • Europe is opening up, shifting from a closed card system to a competitive app layer 4. A Multipolar Landscape: • Scale is shifting to domestic networks (UPI, PIX, Alipay), reducing reliance on global card schemes • Cross-border is becoming a connectivity problem, solved by linking local systems (vs. expanding global ones) • Adoption scales regionally first (APAC corridors), not globally, reinforcing fragmentation • Europe is the exception, attempting a unified layer (Wero) instead of connecting existing systems 5. Wallets as the Control Layer: • Wallet funding reflects local payment norms: cards in the West, A2A in markets like India, and local methods in each region • What changes is not the rail, but controls - wallets sit on top and decide how it’s used • As non-card rails grow, wallets become the integration layer, expanding into super apps where payments power broader ecosystems 6. BNPL as a Core Wallet Component: • BNPL is no longer standalone but a standard feature inside wallets and checkout • Shift from transaction monetization to lifecycle ownership, expanding into accounts, cards, and ecosystems • The paradox: instead of replacing cards, BNPL drives installment demand back onto card rails 7. The Crypto Integration: • Still niche in direct use (0.2% of e-com), but growing fast (16% CAGR), with scale coming via fiat-linked flows (vs. native crypto payments) • Adoption through integration, not replacement: cards, wallets and stablecoins bridge crypto into existing rails, especially in x-border and B2B Analysis: Panagiotis Kriaris, source: Worldpay Global Payments Report 2026 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

Why Merchants Who Treat Payments the Same Everywhere Struggle to Scale Any merchant who has had to deal with expanding their business globally knows that it isn't as simple as just offering some new payment methods, but rather that it is about understanding how each region prefers to pay and then optimizing to accommodate customers to do that. However, I still frequently talk to merchants who think that having the "essential" payment options, such as credit cards, PayPal, or maybe a digital wallet, is enough to go global. In reality, local nuance matters far more than you’d expect. According to McKinsey & Company, over 70% of global e-commerce growth stems from regional payment preferences. Think Klarna in the Nordics, iDeal in the Netherlands, and Pix in Brazil. Missing these nuances is like speaking the wrong language: you can offer the “right” payment methods, but still lose customers who don’t see their preferred local approach. As a Payments Strategist, I’ve frequently worked with merchants who invested heavily in marketing to expand internationally, only to stumble at checkout because they treated all customers the same. But why is that? Let me explain... What most merchants often get wrong is: Overlooking local behavior. Some regions have a high adoption of specific e-wallets or cash-based vouchers. Sticking only to global card brands can lead to cart abandonment. One-size-fits-all fraud checks. Global fraud patterns don’t translate cleanly across borders. A strict rule set for Europe could create false declines in Latin America, where the IP and device profiles differ. Difficulty in scaling operationally. Managing multiple gateways, local acquirers, or alternative payments can become an operational nightmare. Without the right orchestration layer, you end up with scattered data and inconsistent reconciliation. Missing out on better approval rates. Visa and Mastercard have both reported higher authorization rates in cross-border transactions when merchants adopt local processing or network tokens. The solution? Focus on regional optimization, not just “adding more payment methods.” Payment orchestration platforms (like IXOPAY) enable merchants to tailor routing, tokenization, and risk checks to each market. That means higher approval rates, fewer false declines, and better customer experiences—no matter where your shoppers are. Personally, I see local payment strategies as the final piece of the puzzle for a true global scale. Having multiple methods at checkout is essential. Knowing how people want to pay and implementing the technology to support is what ultimately drives growth and revenue. What do you think? Are local payment preferences the hidden barrier to global expansion, or are merchants focusing too much on niche payment methods? Let me know in the comments. P.S. Check out my newsletter for more Payments Strategy Breakdowns https://buff.ly/IDbkSLw

In the payment industry, success isn’t only about scale—it’s about diversification. The diagram below shows how payments are divided across four clear quadrants—each with different purposes, players, margins, and transaction sizes. But beyond the numbers lies a powerful opportunity: Companies can—and should—move from one quadrant to another. Not just to chase profit, but to unlock new customer segments, deepen relevance, enhance ecosystem value, and create competitive moats. Take Mastercard, traditionally dominant in the C2B space (consumer purchases, POS, and online payments). Over the last few years, they’ve expanded aggressively into the C2C/remittance space—partnering with fintechs, wallets, and MTOs to facilitate cross-border P2P flows. Why? Because remittance isn’t just a product—it’s a gateway: • To onboard unbanked users • To extend financial inclusion • To power account-to-account and wallet integrations • To serve the next billion digital users Similarly, a company focused on B2B trade can tap into C2B marketplaces, or a remittance player can evolve into SME payout solutions or merchant acquisition. 📌 The benefits of moving across quadrants go far beyond profit margin optimization: • Stronger ecosystem stickiness • Deeper market penetration • Broader product use cases across daily life • Infrastructure reuse = lower incremental cost • Stronger partnerships with governments, banks, telcos, and fintechs In a world where payments are becoming more invisible and embedded, the companies that thrive will be those that connect multiple payment purposes—not stay in one lane. 🚊 If you already built the rails—why not carry more than one kind of train! #Fintech #Payments #Remittance #Diversification #Mastercard #Strategy #FinancialInclusion #MoneyMovement #GrowthStrategy #B2B #C2C #Innovation

2025 McKinsey & Company Global Payments Report - Stablecoins Feature Prominently 1️⃣ The Payments Landscape Is Fragmenting - Global payments are shifting from unified systems to regionally fragmented networks. Nations are building local payment rails (Pix in Brazil, UPI in India, Wero in Europe) and exploring digital sovereignty — a move that challenges global standards but opens the door for stablecoins and tokenised money to fill cross-border gaps. 2️⃣ Stablecoins Are Nearing Mainstream Adoption - Stablecoin issuance doubled since early 2024, with around $30B in daily transactions. Clearer rules in the EU, US, UK, Hong Kong, and Japan are accelerating adoption. Institutional use cases—like B2B settlements, treasury management, and supply chain finance—are now leading the way. 3️⃣ Tokenisation Is Moving Beyond Hype - Financial institutions are using tokenised deposits and programmable money to settle payments instantly and unlock new revenue streams. Tokenisation is evolving from a crypto-native concept to a core part of financial infrastructure—integrating traditional finance with blockchain rails. 5️⃣ Digital Assets Are Redefining Value Transfer - Blockchain-based payment systems are enabling “always-on” finance—settling value across borders in seconds, not days. For markets with volatile currencies, USD- and EUR-backed stablecoins are emerging as inflation hedges and trusted stores of value. 5️⃣ AI + Blockchain = Intelligent Payments - McKinsey highlights the rise of “agentic commerce”—AI systems that transact on behalf of users. These systems will increasingly use programmable stablecoins and tokenised assets to settle transactions autonomously and securely, transforming how money moves. Real-Life Example In Europe, PayPal’s PYUSD, Circle’s EURC, and AllUnity’s EURA are now accepted by merchants alongside traditional cards and bank transfers. This multirail model—cards, account-to-account, and stablecoins—illustrates how tokenised money is being integrated into mainstream financial systems. Why It Matters Stablecoins and tokenised assets are no longer speculative. They are becoming core financial infrastructure, bridging traditional finance and blockchain. For banks, fintechs, and regulators, this means rethinking liquidity, trust, and compliance in a programmable, real-time world. For consumers, it means faster, cheaper, 24/7 transactions—and a glimpse at the next era of digital money. What Happens Next Expect: - MiCAR to drive regulated growth of euro-denominated stablecoins in 2025–26. - Tokenised deposits and real-world assets (RWAs) to converge with stablecoins for yield-bearing, compliant on-chain money markets. - Banks and fintechs to partner on regulated tokenised payment rails. - AI-driven wallets to execute transactions autonomously, using stablecoins as the settlement layer. - The next payments frontier isn’t just digital—it’s decentralised, tokenised, and intelligent.

Global scale in payments only works if it respects local realities. Consider the contrast between the U.S. and Europe: - The U.S. digital payments market surpassed $3 trillion in annual transaction value in 2025, with strong card dominance and rapid wallet growth.- - In Europe, payment preferences are significantly more fragmented, with local methods and open banking playing a much larger role in conversion. - Authentication outcomes differ materially: reported 3D Secure success rates in Europe are around 80%+, compared to significantly lower rates in North America. These differences aren’t cosmetic. They directly impact approval rates and checkout completion. A routing strategy optimized for U.S. card behavior may underperform in markets where local bank transfers or alternative methods dominate. An authentication flow that works in Europe may introduce unnecessary friction in the U.S. When you apply the same payment strategy across different markets without local optimization, performance declines. Approval rates drop, friction increases, and revenue is left on the table. At scale, those small differences become significant financial impact. This is exactly why payment orchestration must be both globally connected and locally intelligent. At DEUNA, we help enterprises adapt routing, authentication, and payment method strategy by market, so performance reflects local realities instead of assumptions. Because scaling internationally shouldn’t mean sacrificing conversion.

🔴 The global payments system is fragmenting; by design. The 2025 McKinsey & Company Global Payments Report doesn’t frame this as a crisis, but the data tells a clear story: We are moving from a single, standardized financial system to a mosaic of regional rails, rules, and trust anchors A few signals that matter: 👉 Payments now move $2.0 quadrillion annually, generating $2.5 trillion in revenue, yet growth is slowing as traditional fee pools compress 👉 Cash has fallen to 46% of global transactions, replaced by wallets, instant payments, and account-to-account rails, many of them lower-margin by default 👉 Stablecoin issuance has doubled since early 2024, with ~$30B in daily volume; still small relative to global flows, but growing where legacy rails struggle most. What’s happening underneath these numbers is more important than the numbers themselves. Payments used to optimize for efficiency and scale. Now they optimize for resilience, sovereignty, and programmability. McKinsey outlines two plausible futures: 1️⃣ a multirail ecosystem with global passkeys 2️⃣ or deeper regionalization with localized standards and bilateral corridors Both paths share one outcome: 💡 the era of a single global payment rail is over This is where stablecoins quietly change roles: It won’t replace banks and it’s not a consumer payment gimmick. It is a financial infrastructure that works inside fragmentation rather than fighting it. ❗ In practice, that means: • Always-on settlement when correspondent banking is slow or unavailable • Treasury tools for businesses exposed to FX volatility • Programmable money where compliance, routing, and liquidity are embedded at the settlement layer • A neutral bridge between local payment systems that don’t naturally talk to each other For many in emerging markets, it’s happening, it’s already operational reality. Freelancers, SMEs, exporters, and digital businesses aren’t choosing stablecoins because they’re novel, but because they function when the global system doesn’t. The real strategic question is whether we design stablecoins: – as speculative instruments – or as boring, reliable financial plumbing for a fragmented world Shoutout to Felicia T. Nilesh Kumar Gupta Uzayr Jeenah Amit Gandhi Louis Anckaert 💬 I’m curious how others are thinking about this shift. Are we building payments infrastructure for a world that no longer exists or for the one that’s already here?

If you're using a standard payment form, you're losing international sales. Most checkout pages only accept credit cards. Maybe PayPal. But here's what customers in other countries actually want: In Germany, people prefer SEPA bank transfers. In the Netherlands, it's iDEAL. In Brazil, everyone uses Pix. If you only show them a card form, they leave. Why this is hard to fix: Each payment method needs different technical setup. SEPA requires validating an IBAN (international bank account number). Klarna needs redirecting customers to their site and back. Pix needs instant confirmation from Brazilian banks. We’ve integrated all of these local payment methods into a single checkout component Now platforms on Whop can offer local payment methods worldwide in a few lines of code. Your international customers convert better when they can pay the way they're used to.

The reason most global payment strategies fail isn’t the technology–it's ignoring local communities. Take our learnings from Yuno if you're thinking of expanding across borders: Southeast Asia: → Wallets dominate → GoPay, GrabPay, Dana, OVO in Indonesia → People paying at Alfamart (their version of 7-Eleven) Middle East: → Saudi Arabia is opening up to international commerce → But most people don't have credit cards → They use domestic-only debit networks Latin America: → In Chile, most cards don't work cross-border → Companies like Uber learned this the hard way → Had to process locally instead of from the Netherlands I learned this the hard way, too—localization matters. You need a global strategy with local execution. That's the key to scaling payments in today's world.

Uber in Kenya dropped Visa as a payment method in Kenya due to rising costs. First, it may well be a negotiation tactic out of the Trump playbook, act aggressively to extract concessions down the road. Second, even if that is the case, it demonstrates a rapidly changing dynamic in the global payment space: localization of payments is a critical component of any expansion strategy. The fact that Uber could cut off Visa means its business can operate without access to the largest payments company in the world. This is significant reality given that Nairobi is one of the more cosmopolitan cities in sub Saharan Africa and Kenya one of the larger markets in the region. Probably unthinkable even 5 years ago. Some of the challenges working with (foreign) credit cards and debit cards in African markets is delayed settlement timings, limited or complicated support options, fraud detection protocols that are controlled outside of the region and the complications around acceptance devices. In addition to cost these issues add up to significant headaches for operators who are increasingly used to local methods designed for local operators. While I certainly see a future for global payment players like Visa, Paypal, Stripe and others in Africa, I strongly believe local partnerships with local service providers who understand the nuances of local preferences is critical to success. We at AzamPesa and AzamPay are gearing up to launch a partnership with Visa along these lines in Tanzania and hope to expand to other markets to address some of the challenges consumers and businesses face interacting with global payment networks.