Businesses of all sizes are capitalising on the booming e-commerce market to expand internationally. A report states that 63% of e-commerce retailers now sell to international markets. This figure increases to 88% for large businesses and 85% for medium-sized brands. This growing international reach highlights the importance of developing strategies that support sustainable cross-border expansion.
However, this growth presents a significant payment challenge. Customers in different parts of the world have varying payment preferences and often expect to use familiar, local methods. As a result, online payment methods are increasingly becoming a crucial part of the expansion strategy. These methods allow companies to improve checkout experiences, increase payment success rates, and support sustainable cross-border growth.
Businesses rely on online payment methods to process transactions. However, beyond this core function, these methods can help them improve customer experiences and operational efficiency in both local and international markets.
59% of shoppers globally buy from retailers outside their home country. However, businesses trying to reach these customers must understand the differences in their payment preferences. Cards, digital wallets, and bank transfers are the most used methods globally, with usage rates of 76%, 68%, and 63% respectively. However, other payment methods are emerging and gaining popularity, such as mobile payments (48%), real-time payments (43%), buy now, pay later [BNPL] (34%), gift cards/vouchers (27%), pay on delivery (26%), cryptocurrencies (17%), and other local payment methods (15%). This diversity highlights the need for businesses to integrate multiple payment methods so they can accommodate multiple customer segments.
Offering preferred payment methods can create a smoother checkout experience and reduce purchase friction. Businesses that don’t offer localised payment methods lose sales. For example, 25% of customers abandon their carts if they can’t find their preferred payment method. In addition, APAC merchants who don’t offer localised payment methods can experience up to a 32% loss in sales compared to those who offer localised methods. Therefore, offering diverse online payments can help businesses avoid these losses and increase conversions.
Different payment methods offer varying levels of authentication, buyer protection, and fraud prevention. When selecting the methods to integrate into their systems, businesses should assess the risk levels and select those that meet their expectations. They should select payment solutions with robust security features that can help reduce fraudulent transactions, minimise chargebacks, and protect both customers and revenue.
When choosing payment methods, businesses must consider the goals they intend to achieve and their target customers. For example, a business aiming to grow in the US may need to integrate different payment methods compared to one targeting customers in Asia. This is because customers in these regions may have varying payment preferences as well as differences in the laws regulating payment processing.
One way to deal with this fragmentation when targeting global markets is by partnering with platforms like Antom. This unified payment platform is available in over 200 markets across the world and supports over 300 payment methods and 140 currencies. This range of services allows businesses to provide localised payment methods without juggling between multiple platforms and accounts.
Business model is another consideration when choosing payment methods. For example, a business that runs both online and in-store physical product sales can offer cash on delivery options. However, this method may not work for subscription-based service providers. Other considerations include the business’s operational needs, costs, features, and customer support.
The table below highlights the key characteristics of the most common online payment methods to help businesses identify the right mix:
|
Method |
How it works |
Supports recurring payments |
Supports refunds |
Supports disputes |
Payment confirmation |
|
Cards |
Customers pay using credit, debit, or prepaid cards through a payment gateway. |
✔ |
✔ |
✔ |
Immediate |
|
Digital wallets |
Customers complete payments using stored cards or balances in digital wallets. |
✔ |
✔ |
Depends on funding source |
Immediate |
|
Bank debits |
Automatically withdraws funds from the customer's bank account after authorisation. |
✔ |
✔ |
Limited |
Delayed |
|
Bank redirects |
Redirects customers to their online banking portal to authenticate and approve the payment. |
✖ |
✔ |
Limited |
Immediate or delayed (varies by scheme) |
|
Bank transfers |
Customers manually transfer funds from their bank account to the business. |
✖ |
✔ |
Rare |
Delayed |
|
Buy now, pay later (BNPL) |
Customers pay in instalments while the provider pays the business upfront. |
✖ |
✔ |
Shared responsibility between providers and merchants |
Immediate |
|
Cash-based vouchers |
Customers receive a payment voucher online and complete payment in person at a participating location. |
✖ |
Depends on provider |
Limited |
Delayed |
|
Real-time payments |
Funds move directly between bank accounts through instant payment networks. |
Depends on scheme |
✔ |
Limited |
Immediate |
Payment options for different industries and professions
Choosing a payment method depends on how a business operates. For example, an e-commerce retailer may prioritise checkout speed and payment flexibility, while a subscription business needs payment methods that support recurring billing. Understanding these differences can help businesses build an online payment methods strategy that supports business goals and improves customer experience.
E-commerce businesses and online marketplaces often serve diverse customer segments across multiple regions. As a result, they need flexible payments that combine multiple methods to accommodate customer preferences. Digital wallets account for the largest share of global e-commerce transactions (53%), followed by credit cards (20%), debit and prepaid cards (12%), A2A (7%), BNPL (5%), and cash (2%). However, it’s important to remember that these methods may perform differently in different regions. Therefore, global e-commerce and marketplaces should adopt localised payment strategies.
On-demand businesses, such as food delivery, ride-hailing, and home services, rely on fast and reliable payment processing to support seamless customer experiences. Customers typically expect quick checkout and instant payment confirmation. This makes cards, digital wallets, and real-time payments well-suited to this business model. These payment methods also support the speed and convenience that on-demand services require.
Subscription-based businesses require payment methods that support recurring billing and automatic renewals. Businesses use methods such as cards, digital wallets that enable recurring payments, and bank debits because these methods enable automatic payment collection. Customers often enter and save their payment details to their account, authorising companies to automatically deduct the recurring amount. This process reduces the administrative effort while also making payments more convenient for customers.
Professional service providers, including consultants, agencies, healthcare providers, and legal firms, often manage high-value transactions or invoice-based payments. Over 30% of financial professionals state that fast payment methods have positive impacts on their organisations. Examples of these methods are bank transfers, cards, and digital wallets. They provide customers with flexible payment options while supporting secure transactions and refunds where needed. For businesses serving international clients, offering local payment methods can also simplify cross-border payments and improve the overall payment experience.
Although there is a growing global adoption of online payments, some regions record higher levels than others. For example, Asia Pacific leads with total revenues of USD 15.57 billion, followed by North America (USD 11.04 billion), Europe (USD 8.76 billion), South America (USD 3.05 billion), the Middle East (USD 2.03 billion), and Africa (USD 1.86 billion).
In addition, these regions vary in how they use these online payment methods. For example, Asia Pacific accounts for 43% of the online payment market with over 2.6 billion digital wallet users. QR-based payments dominate with over 2.1 billion active users, and mobile-first payments account for 72% of online transactions.
North America accounts for 28% of the global online payments market due to strong banking infrastructure and digital payments. The region has 230 million digital banking customers, and over 165 million Americans use digital wallets. Digital payment channels account for 82% of retail transactions, with contactless or NFC-enabled cards used in 74% of in-store purchases.
Europe accounts for 22% of the global online payments market. It has a 61% digital wallet penetration with 455 million digital banking users. Contactless payment methods now account for 87% of card-based transactions.
The Middle East & Africa region accounts for 7% of the global online payment market with over 450 million mobile finance users. The rate of digital payment adoption in the UAE is 69% compared to 71% in Saudi Arabia, and 64% in South Africa. Africa has over 280 million mobile money users.
These differences show that businesses cannot rely on a one-size-fits-all payment strategy when serving customers across multiple regions. Consumer preferences, payment infrastructure, and adoption levels vary considerably from one market to another. This makes payment localisation essential for improving customer experiences, increasing payment success rates, and supporting cross-border growth.
Online payments allow businesses to better serve domestic and global customers. There are multiple methods organisations can integrate into their payment systems, including debit and credit cards, BNPL, digital wallets, bank transfers, cash, and real-time payments. However, before implementing these methods, it is important to consider customer preferences and payment infrastructure in the target markets. This helps create a localised payment strategy that improves conversion rates and contributes to business growth.
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