When expanding into international markets it’s important to integrate local payment methods into your basket of options in addition to things like using local currency, language, and measurement units. People are less likely to complete a purchase if their preferred mode of payment isn’t supported. 

While credit cards are used for the bulk of ecommerce transactions in North America and parts of Western Europe, this isn’t the case in the rest of the world.

Differences in culture, income levels, economic development, the proliferation of banking services, consumer confidence in the financial sector, convenience, and personal preferences mean that people in different countries tend to prefer certain modes of payment over others. While credit cards are present in virtually every country, they’re not always the most preferred option.


Some popular payment options for people in other regions of the world

Cash on delivery – This is where shoppers pay for a product when they go to pick it up at a convenience store or some other designated drop-off point. Cash on delivery is popular in Mexico and parts of Central and Eastern Europe.

Digital wallets – These are services like Paypal, iDeal, Alipay, and WeChat Pay. Alipay and WeChat Pay are phenomenally huge in China and iDeal processes 60% of all e-commerce transactions in the Netherlands. Certain wallets are only available in certain countries so you’ll need to look into your target market to determine what consumers prefer.

Direct bank transfers – While it’s unheard of in North America, shoppers in India and parts of Latin America routinely pay for online purchases directly out of their bank accounts.