Many merchants believe that the key to increasing online sales is offering as many payment methods as possible.
More cards.
More wallets.
More local payment methods.
More Buy Now, Pay Later options.
It sounds logical.
But in payments, more isn’t always better. Over the years, while helping fintechs, Payment Service Providers (PSPs), EMIs, and merchants build payment infrastructures, we’ve seen businesses spend thousands of dollars integrating payment methods that their customers never use.
Meanwhile, they overlook the one payment option their customers actually expect.
A successful payment strategy isn’t about offering every available payment method.
It’s about offering the right payment method to the right customer, in the right market, at the right time. In this fourth article of our Banking & Payments Myths Series, we’ll explore:
- What a payment strategy actually is
- Why customer payment preferences differ by country
- Why Visa and Mastercard aren’t always enough
- How PSPs integrate Local Payment Methods (LPMs)
- How payment strategy impacts conversion, costs, and customer experience
- The most common mistakes businesses make when expanding internationally
What is a Payment Strategy?
A payment strategy is the way a business designs its payment experience to meet both customer expectations and operational objectives.
It answers questions such as:
- Which payment methods should we offer?
- Which PSP should we integrate?
- Which currencies should we support?
- Should we collect funds locally or internationally?
- How do we balance conversion rates with processing costs?
- Which payment methods make sense for our target markets?
Payment strategy is no longer just an operational consideration.
It’s part of the customer experience.
Why Payment Preferences Differ by Country
Payment habits are influenced by history, regulation, banking infrastructure, and consumer behaviour.
For example:
🇳🇱 The Netherlands Consumers overwhelmingly trust iDEAL for online purchases.
🇵🇱 Poland BLIK has become part of everyday life, from e-commerce to ATM withdrawals.
🇧🇷 Brazil PIX has transformed instant payments and is now one of the country’s preferred payment methods.
🇨🇦 Canada Interac remains deeply embedded in domestic transfers and online payments.
🇩🇪 Germany Many consumers continue to value direct bank payments and invoice-based purchasing alongside cards.
The lesson?
Customers don’t choose payment methods because they’re technically superior.
They choose what feels familiar.
Why Visa and Mastercard Aren’t Always Enough
Visa and Mastercard remain the dominant global card schemes.
They are essential for most international businesses.
But relying exclusively on cards can create unnecessary friction.
Imagine you’re expanding into the Netherlands.
Your checkout offers:
- Visa
- Mastercard
- Apple Pay
Everything appears complete.
But your Dutch customers are looking for iDEAL.
The result?
Some customers complete the purchase.
Others leave because their preferred payment method isn’t available.
Adding iDEAL may have a greater impact on conversion than redesigning the checkout page.
How PSPs Integrate Local Payment Methods
Merchants rarely integrate directly with dozens of payment methods.
Instead, they connect to a Payment Service Provider (PSP).
The PSP acts as the technical gateway, allowing merchants to offer multiple payment options through a single integration.
For example, one PSP may provide access to:
- Visa
- Mastercard
- Apple Pay
- Google Pay
- iDEAL
- BLIK
- PIX
- Interac
- Bancontact
- Bizum
The merchant maintains one integration while the PSP manages the underlying connections.
This is one reason PSP selection is such an important strategic decision.
Not all PSPs support the same payment methods, countries, industries, or risk profiles.
Payment Strategy is About More Than Conversion
A well-designed payment strategy influences several aspects of a business.
Customer Experience
Customers are more likely to complete a purchase when they recognise their preferred payment method.
Processing Costs
Different payment methods have different fee structures. Choosing the right mix can reduce overall payment costs.
Geographic Expansion
Entering a new market often requires adapting your payment offering to local expectations.
Operational Efficiency
Working with the right PSP or acquiring partner can simplify reconciliation, settlement, and reporting.
Common Payment Strategy Mistakes
Mistake #1: Copying Another Merchant
A payment strategy that works for an online retailer in Germany may not work for a fintech in Canada.
Every business has different customers, transaction values, and operational requirements.
Mistake #2: Choosing a PSP Based Only on Price
Processing fees matter.
But so do:
- Local payment coverage
- Settlement speed
- Risk appetite
- Geographic reach
- Industry expertise
- Technical support
The cheapest provider isn’t always the most cost-effective.
Mistake #3: Treating Payments as an IT Project
Payments are not just a technical integration.
They’re a commercial decision.
They influence revenue, customer satisfaction, operational efficiency, and international growth.
Real-World Example
Imagine a UK-based SaaS company expanding into Poland.
The business currently accepts:
- Visa
- Mastercard
- Apple Pay
Traffic from Poland increases, but checkout conversion remains below expectations.
After reviewing customer behaviour, the business integrates BLIK through its PSP.
Within a few months, Polish conversion rates improve because customers can now pay using a method they already know and trust.
The website didn’t change.
The product didn’t change.
The payment strategy did.
Final Thoughts
Businesses spend significant time improving websites, marketing campaigns, and user journeys.
Yet one of the final steps in the customer experience—the payment—often receives the least strategic attention.
Payments are no longer just about collecting money.
They’re about reducing friction, building trust, and supporting international growth.
The businesses that understand how customers prefer to pay are often the businesses that convert more customers.
What’s Next?
In the next article of our Banking & Payments Myths Series, we’ll explore one of the most frequently misunderstood concepts in modern payments:
Banking-as-a-Service (BaaS): What It Is, How It Works, and Why Not Every Company Calling Itself a BaaS Provider Actually Is One.
We’ll explain how BaaS differs from traditional banking, why fintechs rely on it, and how Canadian MSBs, EMIs, and payment companies can use BaaS to launch financial products faster.