Alternative Payment Methods

𝗪𝗵𝘆 𝗟𝗼𝗰𝗮𝗹 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗠𝗲𝘁𝗵𝗼𝗱𝘀 𝗪𝗶𝗻 🌏 It's common, a locally successful company launches in a new market with all the right ingredients. Localized product, translated website, tailored marketing, but they forget one critical thing: 𝙄𝙣 𝙢𝙖𝙣𝙮 𝙥𝙖𝙧𝙩𝙨 𝙤𝙛 𝙩𝙝𝙚 𝙬𝙤𝙧𝙡𝙙, 𝙘𝙖𝙧𝙙𝙨 𝙖𝙧𝙚 𝙩𝙝𝙚 𝙛𝙖𝙡𝙡𝙗𝙖𝙘𝙠, 𝙣𝙤𝙩 𝙩𝙝𝙚 𝙙𝙚𝙛𝙖𝙪𝙡𝙩 Bringing a U.S. checkout to a non-U.S. market can kill expansion faster than most other problems. Let's look at why 👇 ___ 𝗔𝗣𝗠'𝘀 → In Brazil, over 50% of all eComm purchases use either Pix or Boleto → In the Netherlands, iDEAL accounts for more than 70% of online purchases → In India, UPI hit 14 billion transactions in May 2024 alone 🔹But when U.S. merchants expand into these markets, they often only bring cards to the table, then wonder why conversion tanks 𝗧𝗵𝗲 𝗣𝗿𝗼𝗯𝗹𝗲𝗺: 𝗧𝗿𝘂𝘀𝘁 𝗮𝗻𝗱 𝗔𝗰𝗰𝗲𝘀𝘀 🔹In many countries, cards aren’t well trusted or even available → In LatAm, fewer than 30% of consumers have credit cards → In Africa & Southeast Asia, most digital payments are made via wallets → Even when cards exist, foreign BINs often face higher decline rates + fees 𝗧𝗵𝗲 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻 🔹With the recent rise of orchestration platforms and MOR providers, merchants don’t need to integrate every payment method individually. A few key players now offer: → Pre-built local integrations → Dynamic checkout routing → Reconciliation tools for non-card rails → Dodo Payments, for example, supports: ▪️End-to-end local acquiring across over 50 markets ▪️LPM enablement, including Pix, UPI, iDEAL, and more ▪️Global tax, FX, and compliance management built direct to checkout 🔹Using a MOR can quickly unlock local payments to global merchants, accelerating time to revenue in a new market 𝗪𝗵𝘆 𝗟𝗼𝗰𝗮𝗹 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗪𝗼𝗿𝗸 ✔️ 𝗧𝗿𝘂𝘀𝘁 𝘄𝗶𝗻𝘀 → Consumers are more likely to complete checkout using familiar, local rails ✔️ 𝗥𝗲𝗮𝗰𝗵 𝗲𝘅𝗽𝗮𝗻𝗱𝘀 → You serve underbanked and cash-preferred populations ✔️ 𝗙𝗲𝗲𝘀 𝗱𝗿𝗼𝗽 → Many LPMs bypass interchange entirely, especially with account-to-account transfers ✔️ 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 𝗿𝗮𝘁𝗲𝘀 𝗿𝗶𝘀𝗲 → Domestic methods avoid card decline logic and foreign issuer suspicion ___ 𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲 📌 Expanding globally means thinking locally at checkout. Global conversion isn’t about more traffic. It’s about offering the right ways to pay. Source: Pix, UPI Annual Report, iDEAL Annual Report 🔔 Follow Jason Heister for daily #Fintech and #Payments guides, technical breakdowns, and industry insights.

Most companies still force one payout method: direct deposit. Take it or leave it. Your customers don’t all live in the same financial world: • Some don’t have a bank account • Some can’t wait 2-3 days for ACH to clear • Some don’t trust sharing bank credentials • Some only use digital wallets One payout option means you’re excluding the people who need the money most. Here’s what real optionality looks like: • Direct deposit for people who prefer it • Physical cash for people who need it immediately • Gift & payment cards for people who’d rather spend that way • Digital wallets for people who live inside them Some want a bank deposit. Others need same-day cash. Both are valid. Forcing everyone into the same channel is how you lose trust and churn users. Cardless.Cash adds instant physical cash as a payout method alongside your existing rails. You don’t replace anything. You expand choice. 50,000+ instant cash payout locations. $2 + 1% per transaction. No monthly minimums. Pay-as-you-go. Pure software. If you’re paying gig workers, processing claims, sending rewards, or handling high-volume consumer payouts, let’s talk. More options mean more people can actually use what you send them. #Payouts #Fintech #GigEconomy #CardlessCash

Why Local Payment Methods (LPMs) dominate in Europe and how Wero could push that even further in 2025.👇 When it comes to payments across Europe, traditional card schemes like Visa, Mastercard, and AMEX do not reign supreme in the way they do in markets like the US or UK. Instead, local payment methods (LPMs) are king. There are several very good reasons for that: 🔸 Cultural familiarity. Consumers in countries like the Netherlands, Germany, and Sweden are deeply accustomed to using local rails like iDEAL, SEPA, SOFORT, and Swish. 🔸 Trust & reliability. These LPMs are often backed by domestic banks or governments, earning a level of trust that global cards don’t always match. 🔸 Cost efficiency. For merchants, LPMs typically come with lower transaction fees than cards. 🔸 Higher conversion rates. Payment flows are optimised for local users, leading to smoother checkouts and fewer abandoned carts. _________________________ 🚀 Enter Wero – Europe’s answer for the Digital Wallet age Wero, the new pan-European digital wallet backed by the European Payments Initiative (EPI), aims to unify this fragmented landscape even further. It’s designed to offer: ✔️ Seamless account-to-account payments ✔️ Instant P2P transfers ✔️ Cross-border functionality ✔️ A real alternative to non-EU wallets like PayPal or Apple Pay If it gains real traction, Wero has the potential to strengthen European payment sovereignty and further reduce reliance on non-EU card networks. That’s a big deal for merchants, banks, and consumers alike. As a merchant looking to expand across the EU in 2025, understanding and enabling local payment methods isn’t optional, it’s essential. I for one am going to be keeping a very close eye on Wero as it rolls out further afield this year. ➡️ Where do you see Wero fitting in? ➡️ Will it gain ground or struggle to take off?

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐄𝐮𝐫𝐨𝐩𝐞’𝐬 🇪🇺 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 — the 𝐥𝐨𝐜𝐚𝐥 𝐜𝐚𝐫𝐝 𝐧𝐞𝐭𝐰𝐨𝐫𝐤𝐬, 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐦𝐞𝐭𝐡𝐨𝐝𝐬 and 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐫𝐬 by Payplug 👇 Europe is not a single payment market — it’s a patchwork of local card schemes, payment methods, and region-specific consumer habits. Operating across borders means adapting to how people actually pay in each country, not assuming a single checkout experience works everywhere. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬 𝐛𝐲 𝐂𝐨𝐮𝐧𝐭𝐫𝐲 🇫🇷 France → GIE Cartes Bancaires (CB) is the national card scheme, co-badged with Visa or Mastercard. CB accounts for the majority of French card transactions — over 70%+ of all card spending flows through CB rails. 🇩🇪 Germany → girocard is the leading debit scheme, particularly in-store, supported increasingly by co-badging and digital wallets. 🇮🇹 Italy → BANCOMAT (national debit) + mybank for A2A e-commerce. 🇪🇸 Spain → Bizum has become the de facto P2P + increasingly e-commerce checkout option with Getnet having a strong presence as a local PSP. 🇧🇪 Belgium → Bancontact Payconiq Company → soon Wero (EPI Company) 🇳🇱 Netherlands → iDEAL dominates online payments with direct bank transfers → soon Wero (EPI Company) 🇵🇱 Poland → BLIK is the rising instant payments ecosystem powering e-commerce and offline QR. 🇬🇧 UK → Faster Payments and a competitive PSP ecosystem led by Checkout.com, Adyen, and PayPal. 🇵🇹 Portugal → Multibanco remains the core national interbank payment network. 🌐 Nordics → strong national rails + local wallets and bank-based payments -> Vipps in Norway. — 𝐖𝐡𝐲 𝐋𝐨𝐜𝐚𝐥 𝐑𝐚𝐢𝐥𝐬 𝐌𝐚𝐭𝐭𝐞𝐫 𝐢𝐧 𝐄𝐮𝐫𝐨𝐩𝐞 → Consumer Trust & Familiarity Payment behavior is cultural. People trust what they use daily — not what is globally standard. → Cost Efficiency Local schemes often carry lower interchange and processing fees than international networks — improving margins at scale. → Authorization Rates Payments routed through domestic networks typically perform better — especially for recurring billing and card-on-file use cases. → Compliance & Regulation Europe is deeply influenced by PSD2, SCA, and national banking frameworks. Local schemes are already integrated into regulatory norms. — 𝐀 𝐅𝐫𝐞𝐧𝐜𝐡 𝐃𝐨𝐮𝐛𝐥𝐞 𝐂𝐥𝐢𝐜𝐤 🇫🇷 - GIE Cartes Bancaires (CB) in France🇫🇷 CB is not just another card logo — it is the backbone of French card payments. Every CB card is co-badged (CB + Visa or CB + Mastercard), meaning: • Domestic transactions route via CB rails → lower cost, higher approval rates • International transactions route via Visa/Mastercard when needed For merchants selling in France, supporting CB is not optional — it is a prerequisite for conversion, cost control, and customer trust. Global scale requires local depth. — Source: Payplug ► 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐁𝐫𝐞𝐰𝐬 ☕: https://lnkd.in/g5cDhnjC ► Connecting the dots in Payments... | Marcel van Oost

Forget one size fits all, local payment methods are the new consumer favorites in markets round the world Local Eats Global, as global card schemes lose ground to local favorites like digital wallets A2A, carrier billing and BNPL in Ecommerce These are some findings from a The 2024 Global Ecommerce Report which analyses data from 37 major markets, highlighting global, regional and country specific trends. Key Findings ▸ Local payment methods will reach 58% of all ecommerce transaction value globally by 2028, reflecting a major shift within the ecommerce payments market. ▸ By 2028, almost 37% of all individuals globally will actively use local payment methods, reflecting massive growth and expansion of the ecommerce market across the world. ▸ Card values will decline to 20% of transaction value by 2028, from 31% in 2023, reflecting a major shift as the ecommerce market expands. ▸ BNPL is steadily growing its share of ecommerce values, from 4% in 2023 to 5% in 2028, reflecting steady progress outside of key, already highly saturated markets, such as Australia, Germany and Sweden. ▸ A2A payments are seeing strong growth, from 8% of ecommerce spend in 2023 to 16% in 2028, a dramatic increase, reflecting major shifts in this market. Why Going Global Needs Local Payment Solutions As someone who knows payments, I'll explain why understanding local preferences matters for success worldwide. Thinking Globally, Acting Locally: ▸ One-size-fits-all no longer works: Countries have very different ways to pay. If you ignore this, you'll lose sales. ▸ Welcome local favorites: Give your customers the payment methods they like. This shows respect for their choices and helps build trust. ▸ Give a variety of payment options: People enjoy choices when shopping online! In some places, folks use several ways to pay. Don't stick to just one. ▸ Make the user experience smooth: Cost might not be the main factor. An easy and familiar way to pay is crucial to get more sales. Keep in mind, a global outlook means changing how you do things in each market. When you cater to local payment likes, you'll open up a whole new world of chances. Source: Boku (Link in comments) #DigitalPayments #Fintech #Payments #Ecommerce #Cards

What do alternative payment methods look like in emerging markets? The high adoption rates signals might just be a hint of how important these payment methods are for ecommerce success. This report takes a look at how local and alternative payment methods are changing in Africa, Asia, and Latin America. Here are my main takeaways: 🔶 In Southeast Asia, digital wallets are super important. In the Philippines, for example, 33% of ecommerce payments are made using eWallets. 🔶 In Africa, mobile money systems like Kenya’s M-Pesa have expanded quickly. It offers a simple way to manage money where banking options are limited. 🔶 Brazil’s Pix system has achieved 87% adoption in just three years. 🔶 In emerging markets with lower internet access like Nigeria, bank transfers are still an important payment method, especially for large transactions. 🔶 Despite the digital shift, cash is still widely used in countries like Egypt and Morocco, where it makes up a large portion of transactions because of economic and infrastructure challenges. 🔶 Mobile money and digital wallets are helping more people in Sub-Saharan Africa access banking services. The growing use of alternative payment methods is simplifying cross-border transactions. This makes it easier for international businesses to enter these markets. #Fintech #Payments #Digital

Unlocking Revenue Growth: The Power of Diversified Payment Methods As businesses strive to optimize their online checkout experiences, one question consistently arises: How does adding payment methods affect conversion and revenue? At Stripe, we're excited to share insights from our recent experiment that sheds light on this critical issue. Key Findings: 1. Meaningful Increase in Conversion and Revenue: When at least one additional relevant payment option beyond cards was dynamically surfaced at checkout, businesses saw a significant boost in both conversion rates and revenue. 2. Local Payment Methods Lead the Way: The most substantial uplift came from offering dominant local payment methods, digital wallets, and bank debits. 3. Context Matters: We uncovered valuable insights into how the impact of additional payment methods varies based on geographic location and product type. The takeaway is clear: By offering a diverse range of payment methods tailored to each transaction's unique characteristics, businesses can unlock significant growth potential. Blog post: https://lnkd.in/gtAgp7cs #PaymentMethods #EcommerceOptimization

Are you really a crypto advocate if you're not encouraging local businesses to accept stablecoins as payment? Today, I was chatting with my barber, who knows me as "the crypto guy." While I usually pay him via Venmo, I asked if he was tired of processing fees. He admitted that every time he moves money to his bank, Venmo takes a cut. If a transaction gets flagged as business-related, there's a 3% fee. There's no way to transfer those funds for free. So, I asked, "If you could save on those fees, would you be open to it?" Naturally, he said yes. I explained how easy it is to accept stablecoins—just like Venmo, but with lower fees and instant transactions. I shared that a stablecoin is essentially a digital dollar on the blockchain, offering a real alternative to ACH or wire transfers. It clicked immediately and I could tell I had planted the seed successfully. Now, of course, options exist like Coinbase that can offramp from USDC to Fiat almost free of charge (with maybe a few days for the funds to process), or Beam from Ansible Labs, which charges just 1% but is incredibly fast. If you're a business running $50k through Venmo annually—or a traditional payment processor like Stripe —going from 3% in fees to even 1% translates to $1,000 back in your pocket. Imagine what that could mean across multiple small businesses, especially as you scale payment volume up to $500k or even $5 million. While I love seeing big players like Coinbase push for on-chain adoption, let's not underestimate the power of cumulative efforts from individual advocates. It starts with us—crypto enthusiasts—bringing stablecoins to the businesses we frequent. Next time you are at your favorite coffee shop or barber, I challenge you to ask if you can pay in stablecoins and see what they say. This could spark a domino effect thats puts stablecoin payments well on their way toward mainstream adoption.

💡 When I talk to merchants about international expansion, many assume that offering credit card processing and a couple of major payment methods is enough. They’re in for a wake-up call. Here’s why: In Brazil - almost everyone uses Pix In Mexico - Oxxo In Colombia - Efecty Ignoring local payment methods means: • Potentially losing 10-30% of business • Your “global” strategy falls short • Local competitors have an edge • Missing entire market segments Most payment processors will integrate the top 3 payment methods in a market. But what about methods 4, 5, 6, 7, 8, 9, and 10? Customers won’t change how they pay just because you’re there. So please, make sure you have local methods fully covered. Or leave 10-30% of revenue on the table. 🌟 #latam #payments #revenue #ecommerce #apac #globalexpansion #paymentlocalization