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Why are local payment methods important?

As more merchants expand their online reach across borders, one factor can make or break international success: how people pay.

It’s easy to assume that accepting credit cards is enough, but that’s rarely the case outside of a few core markets. Around the world, consumers have strong preferences for payment methods that are local, familiar, and tailored to their shopping habits. And if you’re not offering those options? You’re likely leaving conversions on the table.

Let’s explore why local payment methods matter, and how they can drive your global growth.

1. Payment preferences vary - a lot

While cards dominate in countries like the U.S., they’re far less common elsewhere. For example:

• In the Netherlands, iDEAL accounts for over 80% of online payments.
  
  
• In Germany, shoppers prefer Pay by Bank.
  
  
• In Poland, BLIK is widely used, often more than cards.
  
  
• In the Nordics and DACH region, Klarna is a top choice for Buy Now, Pay Later.
  
  

If you're only offering cards in these markets, you're creating unnecessary friction. Customers might hesitate - or abandon checkout altogether, if they don't see a trusted option.

2. Familiarity builds trust (and conversions)

Recognizable payment methods instill confidence. They speed up checkout, especially on mobile, and reduce decision fatigue. In short: local payment methods make customers feel at home, and that leads to more completed purchases.

Many merchants have seen double-digit conversion increases simply by adding the right local options.

3. Localizing helps you compete

Localization isn’t just a nice-to-have, it’s a competitive edge. Shoppers compare experiences, and if a local brand offers smoother checkout, you may lose the sale.

Offering trusted local methods makes your business feel closer, more relevant, and easier to trust - even if you’re based in another country.

4. Some methods reduce fraud and chargebacks

Local payment methods based on bank transfers or Open Banking often come with real-time authentication and fewer intermediaries. That means:

• Fewer fraud attempts
• Reduced chargebacks
  Lower operational risk

It’s better for you, and better for your customers.

5. You can save on fees

Not all payment methods are equal when it comes to cost. Cards often involve multiple intermediaries - acquirers, schemes, gateways - each adding a fee.

By contrast, local methods like Pay by Bank tend to have lower fees and faster settlement. Depending on your provider, the savings can add up fast, especially at scale.

Final Thoughts

Offering local payment methods isn’t just a technical upgrade - it’s a strategic decision. It shows that you understand your customers, respect their preferences, and are committed to delivering a seamless checkout experience wherever they are.

If you’re expanding into Europe or other international markets, now’s the time to align your payment offering with local preferences. Because in payments, local really does mean loyal.

👉 Curious about a specific market? Contact us, and we’ll send you a guide tailored to your region of interest.