Many merchants spend months improving their checkout experience.
They redesign buttons.
Reduce the number of checkout steps.
Optimise colours.
A/B test layouts.
Yet one of the biggest factors influencing whether a customer completes a purchase is often overlooked:
Are you offering the payment method they actually want to use? Over the years, while helping fintechs, payment service providers, merchants and regulated financial institutions expand into new markets, we’ve seen one mistake repeated time and time again.
Businesses assume that accepting Visa and Mastercard is enough.
In many countries, it isn’t.
Consumer payment preferences vary significantly around the world, and ignoring those preferences can directly impact conversion rates, customer trust, and ultimately revenue.
In this third article of our Banking & Payments Myths Series, we’ll explain:
- What Local Payment Methods (LPMs) are
- What Alternative Payment Methods (APMs) are
- Why customers choose them
- Which countries rely heavily on local payment solutions
- How merchants integrate them
- Why offering the right payment method can increase conversion rates more than redesigning your checkout
What are Local Payment Methods?
A Local Payment Method (LPM) is a payment solution that has become widely adopted within a specific country or region. Unlike Visa or Mastercard, which are global card schemes, Local Payment Methods reflect how consumers naturally prefer to pay in their domestic market.
Some countries have one dominant payment method. Others have several.
Understanding those preferences is one of the easiest ways for merchants to improve the customer experience.
What are Alternative Payment Methods?
Alternative Payment Methods (APMs) are any payment options outside traditional debit and credit cards.
Examples include:
- Open Banking payments
- Bank transfers
- Digital wallets
- Local Payment Methods
- QR code payments
- Buy Now Pay Later (BNPL)
- Mobile payment applications
Not every Alternative Payment Method is a Local Payment Method.
Likewise, not every Local Payment Method is unique to one country.
The two categories overlap but are not identical.
Why Local Payment Methods Matter
Imagine opening a restaurant in Italy and only serving sushi.
Some people will still eat there.
But most customers would probably prefer pizza or pasta.
Payments work in a similar way.
Customers tend to trust payment methods they already know.
When they don’t see their preferred option during checkout, they are more likely to abandon the purchase.
Research consistently shows that offering familiar payment methods improves:
- Checkout conversion
- Customer confidence
- Payment success rates
- Repeat purchases
Sometimes, simply adding one local payment method produces a greater commercial impact than redesigning the checkout page itself.
Real-World Examples
Netherlands — iDEAL
If you’re selling online in the Netherlands, there’s one payment method you cannot ignore:
iDEAL.
Developed by Dutch banks, iDEAL allows customers to pay directly from their online banking environment.
For many Dutch consumers, paying with iDEAL feels more familiar than entering card details.
Merchants targeting the Dutch market without iDEAL often experience lower conversion rates despite offering Visa and Mastercard.
Poland — BLIK
BLIK has transformed digital payments in Poland.
Instead of using cards, customers generate a one-time payment code within their banking app.
They simply enter the code at checkout and approve the transaction on their phone.
Today, BLIK is used for:
- E-commerce
- ATM withdrawals
- Peer-to-peer transfers
- In-store purchases
For Polish consumers, BLIK has become part of everyday banking.
Brazil — PIX
PIX is one of the fastest-growing payment systems in the world.
Launched by the Central Bank of Brazil, PIX enables instant payments 24 hours a day.
Consumers can pay using:
- QR codes
- Mobile numbers
- Email addresses
- Tax identification numbers
For many Brazilian merchants, PIX has become the preferred payment method because of its speed and low cost.
Canada — Interac
Many international businesses assume Canadians primarily pay with Visa or Mastercard.
While cards remain popular, Interac plays a major role in domestic payments. Interac supports:
- Bank transfers
- E-Transfers
- Debit payments
- Person-to-person transfers
For businesses entering Canada, offering Interac can significantly improve the customer experience.
Why PSPs Offer So Many Payment Methods
Merchants often ask us:
“Why does one PSP offer 20 payment methods while another only offers cards?”
The answer is simple.
Payment Service Providers compete by offering merchants access to the payment methods customers actually use.
Instead of integrating separately with:
- iDEAL
- BLIK
- PIX
- Interac
- Bancontact
- Bizum
the merchant integrates once with the PSP.
The PSP manages the technical integrations behind the scenes.
Choosing the Right Payment Methods
There is no universal payment strategy.
A merchant selling to Germany may prioritise:
- SEPA
- Sofort
- PayPal
A merchant expanding into Brazil may require:
- PIX
- Cards
- Local bank transfers
A Canadian fintech may prioritise:
- Interac
- EFT
- Wire payments
The right mix depends on:
- Geography
- Customer demographics
- Average transaction value
- Industry
- Risk profile
Myth #1: Visa and Mastercard Are Enough Everywhere
False.
Consumer payment preferences differ significantly between countries.
Ignoring local payment habits can reduce conversion rates and increase abandoned checkouts.
Myth #2: More Payment Methods Always Mean More Sales
Not necessarily.
Offering 30 payment methods doesn’t automatically improve conversion.
The objective isn’t to offer every available payment option.
It’s to offer the payment methods your customers actually use.
A focused payment strategy often outperforms a larger but poorly targeted one.
Myth #3: Local Payment Methods Are Only Relevant for Large Merchants
False.
Even small businesses selling internationally can benefit from offering the right local payment methods.
For many SMEs, adding just one relevant payment option can make entering a new market significantly easier.
Final Thoughts
Payment strategy is about much more than accepting cards.
It’s about understanding customer behaviour.
The most successful merchants don’t simply ask:
“Which payment methods can we offer?”
They ask:
“Which payment methods do our customers already trust?” That small shift in thinking often leads to higher conversion rates, lower payment friction, and a better customer experience.