International Trade Finance

The evolution of payment methods is reshaping the way we pay, but how do merchants handle this constant change on a global scale? The past few years have seen an explosion in alternative payment methods (APMs) available to consumers, driven by rapid advancements in technology, growing consumer expectations for seamless experiences, and increased awareness of data privacy. With a myriad of options like digital wallets, cryptocurrencies, and mobile payment apps, consumers now expect the flexibility to choose how they pay. For large merchants, managing such a diverse ecosystem of payment methods can seem overwhelming. However, there are strategies to ensure a smooth integration and management of these options, ultimately providing the best customer experience: Partner with a reliable payment orchestration provider: A well-established payment orchestration platform can handle hundreds of APMs on a global scale, providing merchants with a unified platform for easy management, reduced operational complexity, and region-specific security features. Prioritize popular APMs: Focus on integrating the most widely-used APMs in your target market, while also keeping an eye on emerging trends to stay ahead of the competition. Optimize user experience: Seamless integration of APMs into your existing checkout process is crucial. Design user interfaces that cater to various preferences and devices, ensuring a frictionless payment experience for all customers. Prioritize security and compliance: As you adopt new payment methods, be vigilant about maintaining strict security standards and staying compliant with relevant regulations to protect your business and customers. Stay agile and adaptable: The payments landscape will continue to evolve. Be prepared to iterate on your payment processes and adopt new technologies as they emerge to stay relevant and competitive. By proactively managing the integration of alternative payment methods, large merchants can unlock new opportunities, provide better customer experiences, and stay ahead in the rapidly changing world of commerce. Source Ali Ahmed #payments #fintech #digitalwallets

Alternative Payment Methods (APM's). There was a scramble a few years ago from every PSP and Acquirer to offer as many APM's as they possibly could. PPRO did very well out of this scramble and many platforms still utilise their rails for APM accessibility, alongside 3-4 other enabler players that have entered the market more recently. The big question for me is what are the leading APM's that a PSP or Acquirer really needs to be enabling for a fast growing UK retailer that is opening up their sales channel cross border into Europe in 2024. ______________________ Here is my view as a starting point (there are many more but I'm taking an initial launch focus here).👇 ⦿ Unique local payment methods: Germany - SEPA Direct Debit / giropay / SOFORT Netherlands - Currence iDEAL B.V. Spain - Bizum Poland - BLIK & Przelewy24 Sweden - Swish Switzerland - TWINT ⦿ Local Card Schemes (these can sometimes be co-branded ventures with Mastercard and Visa): It is worth noting that access to local card schemes can also be a limiting factor if your acquirer doesn't offer support for them. Good examples of these are: France - GIE Cartes Bancaires Belgium - Bancontact Denmark - Dankort Check the connectivity of your acquirer in regards to these local schemes. ⦿ BNPL: One of these providers should really be offered in the ever growing and competitive BNPL market if you are a retailer (depending on niche retail sector or B2C vs B2B requirements, EU focus again): Klarna Clearpay (Afterpay) Zilch Mondu ⦿ Other: PayPal - Still very popular in a variety of EU countries, PayPal should still be offered as a payment method for UK retailers looking to sell into Europe. Digital Wallets are just a given in 2024, if you still aren't offering Apple Pay and G Pay, you are falling behind your retail competition, period. Pay by Bank - Is the open banking payment method ready to challenge the legacy APM players in the EU? For me, the answer is currently no. The reason being that I have heard the payment flow is a bit of a mess compared with the slick checkout flows we are moving towards with Pay by Bank in the UK (over a dozen payment flow screens was referenced with one specific EU bank in order to complete a payment!). ______________________ It would be great to hear from my network on other APM requirements that you have encountered in recent times and further recommendations for UK retailers selling cross border to the EU.

𝟰 𝗠𝗮𝗶𝗻 𝗖𝗿𝗼𝘀𝘀-𝗯𝗼𝗿𝗱𝗲𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗺𝗼𝗱𝗲𝗹𝘀 - 𝗽𝗼𝘄𝗲𝗿 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗴𝗹𝗼𝗯𝗮𝗹 𝘁𝗿𝗮𝗱𝗲 𝘁𝗼 𝘁𝗼𝘂𝗿𝗶𝘀𝗺 𝗮𝗻𝗱 𝗿𝗲𝗺𝗶𝘁𝘁𝗮𝗻𝗰𝗲𝘀. Behind a simple “Send → Receive” button are very different infrastructures, each with its own cost, speed, compliance requirements, and user experience. Here are the 4 main models used globally today — and why they matter. 1️⃣ 𝗖𝗼𝗿𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗲𝗻𝘁 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 (𝗦𝗪𝗜𝗙𝗧-𝗲𝗿𝗮 𝗿𝗮𝗶𝗹𝘀) The traditional backbone of international transfers. Banks rely on a chain of intermediaries holding accounts with each other. 𝗣𝗿𝗼𝘀: ✔️ Global coverage ✔️ Works across any two banks 𝗖𝗼𝗻𝘀: ❌ Slow (1–3 days) ❌ Expensive fees ❌ Opaque tracking ❌ Dependent on multiple middlemen This is still the default model for corporates and legacy institutions. 2️⃣ 𝗠𝗼𝗻𝗲𝘆 𝗧𝗿𝗮𝗻𝘀𝗺𝗶𝘁𝘁𝗲𝗿𝘀 (𝗪𝗲𝘀𝘁𝗲𝗿𝗻 𝗨𝗻𝗶𝗼𝗻, 𝗠𝗼𝗻𝗲𝘆𝗚𝗿𝗮𝗺) Instead of moving money across borders, they use local prefunding/pooling, paying out from balances already held in the destination country. 𝗛𝗼𝘄 𝗶𝘁 𝘄𝗼𝗿𝗸𝘀: Collect money locally at agent→ Message the partner abroad → Payout using prefunded local liquidity 𝗣𝗿𝗼𝘀: Fast, predictable, lower cost 𝗖𝗼𝗻𝘀: Requires large prefunding + liquidity risk management This is how Wise, Revolut, and many remittance apps scaled. 3️⃣ 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗔𝗴𝗴𝗿𝗲𝗴𝗮𝘁𝗼𝗿𝘀 (𝗪𝗶𝘀𝗲) 𝗔𝗴𝗴𝗿𝗲𝗴𝗮𝘁𝗼𝗿𝘀 𝗰𝗼𝗺𝗯𝗶𝗻𝗲: - Local bank accounts (multi-currency) - FX engines - Treasury & hedging - Local payout rails They operate more like global money routers, plugging into dozens of local clearing systems. 𝗣𝗿𝗼𝘀: ✔️ Efficient FX ✔️ Instant local payouts ✔️ Unified global API ✔️ Transparent fees 𝗖𝗼𝗻𝘀: Complex tech integrations Depend on banking rails FX and treasury risk Heavy compliance burden This is the blueprint for modern fintech payment companies. 4️⃣ 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻-𝗕𝗮𝘀𝗲𝗱 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 The newest model — and the fastest-growing. Instead of messaging across banks or prefunding multiple accounts, stablecoins allow: - Instant on-chain settlement, 24/7 - Global interoperability - No correspondent chains Flow: USD → On-chain USD (USDT/USDC) → FX conversion → Local payout 𝗣𝗿𝗼𝘀: ✔️ Near-instant settlement ✔️ Low cost ✔️ Global reach ✔️ Programmable (smart contracts) ✔️ Ideal for SMEs, remittances, tourism, crypto-native users 𝗖𝗼𝗻𝘀: ⚠️ Regulatory variations ⚠️ On/off-ramp dependency But adoption is accelerating fast — especially in APAC, LATAM, and Africa. 𝙏𝙝𝙚 𝘽𝙞𝙜𝙜𝙚𝙧 𝙋𝙞𝙘𝙩𝙪𝙧𝙚: Cross-border payments are moving from: slow, bank-led, message-based systems → fast, programmable, interoperable settlement networks. Stablecoins aren’t replacing banks — they’re reshaping where banks add value: treasury, compliance, FX, liquidity, credit — instead of running the rails. Inspired by Matt Brown #crossborder #payments #digitalpayment #fintech #stablecoins #FX

⚙️ 𝗛𝗢𝗪 𝗠𝗢𝗡𝗘𝗬 𝗔𝗖𝗧𝗨𝗔𝗟𝗟𝗬 𝗠𝗢𝗩𝗘𝗦: 𝟲 𝗣𝗔𝗬𝗠𝗘𝗡𝗧 𝗥𝗔𝗜𝗟𝗦 𝗖𝗢𝗠𝗣𝗔𝗥𝗘𝗗 From the outside, payments look simple. You tap a card, send a transfer, or pay with a wallet — and the money just moves. But behind the scenes, the global financial system runs on very different payment rails, each built for a specific use case. Here are six of the most important ones 👇 🌍 𝗦𝗪𝗜𝗙𝗧 Cross-border corporate transfers via correspondent banks. ⏱ 1–5 days | 💰 High fees | Global B2B standard. 💶 𝗦𝗘𝗣𝗔 Unified euro payments infrastructure. ⏱ 1 day or instant with SEPA Instant. 💳 𝗖𝗔𝗥𝗗 𝗦𝗖𝗛𝗘𝗠𝗘𝗦 (𝗩𝗶𝘀𝗮 / 𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗮𝗿𝗱) Authorization in milliseconds, but settlement in T+1–2 days. The backbone of POS & e-commerce. ⚡ 𝗥𝗧𝗣 / 𝗜𝗡𝗦𝗧𝗔𝗡𝗧 𝗣𝗔𝗬𝗠𝗘𝗡𝗧𝗦 (FedNow, UPI, Faster Payments) Domestic transfers in seconds, 24/7/365. 📱 𝗪𝗔𝗟𝗟𝗘𝗧𝗦 & 𝗔𝗟𝗧𝗘𝗥𝗡𝗔𝗧𝗜𝗩𝗘 𝗥𝗔𝗜𝗟𝗦 (PayPal, Apple Pay, M-Pesa) Abstract traditional rails behind a simplified user experience. ⛓ 𝗖𝗥𝗬𝗣𝗧𝗢 / 𝗕𝗟𝗢𝗖𝗞𝗖𝗛𝗔𝗜𝗡 Peer-to-peer transfers without intermediary banks. Settlement depends on the chain and network load. 📊 𝗥𝗘𝗔𝗟𝗜𝗧𝗬 There is no universal rail. Modern banks operate across multiple payment ecosystems at the same time — and the real challenge today is making all of them work together seamlessly.

Do you expand globally? Your checkout strategy can't be one-size-fits-all. Here’s what drives online payments in key markets around the world 👇 🇧🇷 Brazil → Pix (40% of e-commerce, 252M transactions in a single day) 🇨🇦 Canada → Interac + Cards (domestic bank transfers + card-first market) 🇨🇳 China → Alipay + WeChat Pay (84% of online payments) 🇩🇰 Denmark → Cards + MobilePay (52% of transactions) 🇫🇮 Finland → Online Banking (30% of transactions) 🇫🇷 France → Cartes Bancaires + PayPal (dominant domestic card scheme) 🇩🇪 Germany → Klarna + SEPA (BNPL + bank transfer culture) 🇮🇳 India → UPI (57% of all transactions, 13B per month) 🇯🇵 Japan → Credit Cards (55% of online payments) 🇰🇪 Kenya → M-PESA (90% market penetration) 🇲🇽 Mexico → Cards + Mercado Pago (cards still dominate) 🇳🇱 Netherlands → iDEAL (92% of online payments) 🇳🇴 Norway → Vipps (leading mobile payment method) 🇵🇱 Poland → BLIK (420M transactions in 2024) 🇵🇭 Philippines → GCash (dominant digital wallet) 🇸🇦 Saudi Arabia → Cards + STC Pay (fast digital adoption) 🇸🇪 Sweden → BNPL + Swish (23% of online transactions) 🇺🇸 USA → Digital Wallets (39%) vs Cards (31%) The bottom line is clear: Customise solutions for different markets. 😉 ----- 👋 Hi! I'm Max Shevlyakov and I talk about the payment industry to strengthen this community on LinkedIn. Feel free to connect with me!

Payment Terms in Export Shipments: Building Trust in Global Trade International trade is not only about moving cargo — it is also about managing financial risk between buyers and sellers. This is why payment terms play a critical role in export shipments worldwide. 💹 Historically, modern trade finance systems expanded rapidly after World War II, when global commerce increased and businesses needed safer international payment methods. Today, global trade exceeds USD 30 trillion annually, making payment security more important than ever. One of the safest methods for exporters is Advance Payment (T/T), where the buyer pays before shipment. While it offers maximum security for the seller, it creates higher risk for the buyer and is less common in long-term partnerships. The Letter of Credit (L/C), introduced widely through international banking systems in the 20th century, remains one of the most trusted payment methods. Banks guarantee payment if all shipping documents meet agreed conditions. Other common methods include Documents Against Payment (D/P) and Documents Against Acceptance (D/A), where banks act as intermediaries to control document release and payment timing. Open Account terms have become increasingly popular in strong business relationships because they simplify operations and reduce banking costs. However, this method places higher financial risk on the exporter. Usance payments, consignment sales, and partial payment agreements are also widely used depending on market conditions, buyer credibility, and shipment value. According to trade finance studies, payment disputes and delayed collections can affect up to 20% of international SME transactions, directly impacting cash flow and operational stability. Selecting the right payment term is not only a financial decision — it is a strategic supply chain decision that balances trust, liquidity, competitiveness, and risk management. ➡️ In global business, secure payments create sustainable partnerships. #Logistics #SupplyChain #Export #InternationalTrade #TradeFinance #FreightForwarding #LetterOfCredit #GlobalBusiness

𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐌𝐞𝐭𝐡𝐨𝐝 𝐆𝐮𝐢𝐝𝐞 (𝐀𝐏𝐌) — by Travel & Payments 👇 𝐂𝐚𝐫𝐝𝐬 𝐯𝐬. 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐌𝐞𝐭𝐡𝐨𝐝𝐬 (𝐀𝐏𝐌𝐬) Globally, payment methods are evolving beyond plastic. Card networks still dominate many markets, but Alternative Payment Methods (#APMs) — like real-time payments, e-wallets, & carrier billing — are surging in popularity. Each method offers different experiences based on geography, infrastructure, user behavior, and regulatory preferences. — 𝐂𝐚𝐫𝐝𝐬 — The Traditional Backbone 1️⃣ 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐚𝐫𝐝𝐬 Pay Later in Full or Partial — Powered by networks like Visa, Mastercard, and American Express Examples: Chase Sapphire, Citi Rewards, Capital One Venture 2️⃣ 𝐃𝐞𝐛𝐢𝐭 𝐂𝐚𝐫𝐝𝐬 Pay Now — Directly debited from linked accounts Examples: SBI Card Debit, Barclays, Visa Debit 3️⃣ 𝐏𝐫𝐞𝐩𝐚𝐢𝐝 𝐂𝐚𝐫𝐝𝐬 Pay Before — Preloaded cards for spending control Examples: GCash Mastercard, PayPal Prepaid 4️⃣ 𝐂𝐡𝐚𝐫𝐠𝐞 𝐂𝐚𝐫𝐝𝐬 Pay Later in Full (monthly balance due) Examples: American Express Green, Diners Club International — 𝐀𝐏𝐌𝐬 — The Rise of Localized Innovation 1️⃣ 𝐁𝐚𝐧𝐤 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐬 (incl. RTP) Examples: 𝐅𝐞𝐝𝐍𝐨𝐰 (US), 𝐒𝐄𝐏𝐀 (EU), 𝐔𝐏𝐈 (India), 𝐏𝐈𝐗 (Brazil) 2️⃣ 𝐄-𝐖𝐚𝐥𝐥𝐞𝐭𝐬 Store digital credentials for quick checkout Examples: Apple Pay, Google Pay, PayPal, Paytm, Venmo 3️⃣ 𝐂𝐚𝐫𝐫𝐢𝐞𝐫 𝐁𝐢𝐥𝐥𝐢𝐧𝐠 Enables digital purchases via mobile operator Examples: airtel, Boku 4️⃣ 𝐂𝐚𝐬𝐡 𝐕𝐨𝐮𝐜𝐡𝐞𝐫𝐬 Prepaid cash-based systems used in LATAM & Africa Examples: 𝐁𝐨𝐥𝐞𝐭𝐨 (Brazil), OXXO (Mexico) 5️⃣ 𝐌-𝐖𝐚𝐥𝐥𝐞𝐭𝐬 / 𝐌𝐨𝐛𝐢𝐥𝐞 𝐌𝐨𝐧𝐞𝐲 Designed for mobile-first, cash-reliant economies Examples: M-PESA Africa, GrabPay, Paytm — 𝐆𝐥𝐨𝐛𝐚𝐥 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 — 𝐓𝐨𝐩 𝟑 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐌𝐞𝐭𝐡𝐨𝐝𝐬 𝐛𝐲 𝐑𝐞𝐠𝐢𝐨𝐧 🔹 𝐍𝐨𝐫𝐭𝐡 𝐀𝐦𝐞𝐫𝐢𝐜𝐚: Credit & Debit Cards Digital Wallets (Apple Pay, PayPal) Buy Now Pay Later (Affirm, Klarna) 🔹 𝐄𝐮𝐫𝐨𝐩𝐞: Bank Transfers (SEPA) Credit & Debit Cards E-wallets (PayPal, Klarna, 𝐢𝐃𝐄𝐀𝐋 in Netherlands) 🔹 LATAM: Cash Vouchers (Boleto, OXXO) Cards (especially local scheme cards) E-wallets (Mercado Pago, PicPay ,Yape) RTP (Pix) 🔹 APAC: QR Code & Mobile Wallets (Alipay, WeChat Pay) Bank Transfers (UPI, Promtpay) Cards (especially in Japan, South Korea) 🔹 MENA: Cash on Delivery (still prevalent) Cards Mobile wallets (STC Pay, M-PESA Africa, Fawry in Egypt) — 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 The payment landscape is no longer “card-first” — it’s becoming experience-first. The future lies in blended infrastructure: supporting traditional rails & local preferences like e-wallets, RTP, and tokenized credentials. — 𝐍𝐞𝐱𝐭 𝐔𝐩 -- 𝐓𝐡𝐞 𝐂𝐚𝐫𝐝 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐅𝐥𝐨𝐰 𝐚𝐧𝐝 𝐅𝐞𝐞𝐬 Source: Travel & Payments ► Sign up to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐁𝐫𝐞𝐰𝐬 ☕: https://lnkd.in/g5cDhnjC ► Connecting the dots in payments... and Marcel van Oost

🚀 Want to Master Payments? Start Here. Most professionals say they “work in payments.” Very few actually understand the full ecosystem. If you can clearly explain how money moves from one account to another — across countries, currencies, and systems — you’re already ahead of 90% of the market. Here’s the structured roadmap 👇 🧠 1️⃣ Understand the Foundation: Payment System Types 🔴 Large Value Payment Systems (LVPS) Examples: • Fedwire • CHIPS • CLS Used for high-value, time-critical settlements. 🔴 Retail Payment Systems (RPS) • ACH • Card Networks (Open Loop: Visa, Mastercard | Closed Loop: American Express) • Check Clearing 🔴 Fast Payment Systems (FPS) • RTP (US) • IMPS (India) • Pix (Brazil) • NIP (Nigeria) Real-time. 24/7. Always on. 🌍 2️⃣ Learn the Market Infrastructure A payment does NOT move alone. It interacts with: • Central Banks • Commercial Banks • Clearing Systems • Settlement Systems • Legal & Regulatory Frameworks And globally? You must understand the role of SWIFT — the backbone of financial messaging. 🏗 3️⃣ Master the End-to-End Flow If you want to truly stand out in interviews or projects, know this flow: Order → Authorization → Clearing → Settlement → Reconciliation → Ledger Posting → Dispute Handling → Reporting Understand: ✔ Treasury Management ✔ Chargebacks ✔ Risk & Fraud Controls ✔ Payment Channels ✔ Accounting Impact This is where senior-level thinking begins. 🌎 4️⃣ Cross-Border Payments = The Real Differentiator Study: • Correspondent Banking • Interlinking Models • Single Platform Models • Cross-Border Acceleration The future? CBDCs. Open Banking. Faster cross-border rails. 📈 5️⃣ How to Actually Learn (Practical Methodology) Here’s the framework I recommend: ✅ Step 1: Pick ONE country and map its full payment ecosystem ✅ Step 2: Compare it with another region ✅ Step 3: Trace one transaction end-to-end ✅ Step 4: Understand message formats & settlement models ✅ Step 5: Study real production incidents & reconciliation breaks Knowledge becomes power when you connect the dots. 💡 Remember: Payments is NOT just about transactions. It’s about infrastructure, regulation, liquidity, technology, and risk — all working together. If you master payments, you become recession-proof. If this roadmap helped you, 💬 Comment “PAYMENTS” 🔁 Follow ℙℝ𝔸𝕋𝕀𝕂 𝔻𝔸𝕋𝕋𝔸 on LinkedIn for more such insightful updates on Payments, SWIFT, SEPA & Financial Systems. Let’s build expertise that compounds.

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

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.