Leverage local payment methods for higher conversions

Grow your international markets and boost conversions with local payment methods. 💡Here's why & how👇

Alternative payment methods APMs for various countries.

🌎 Payment preferences

  • (Case in point) Uber in Southeast Asia: Its exclusive credit card payment option limited access to different societal segments. Local players, Grab & Gojek, embraced cash payments for local preferences

  • Offer Alternative Payment Methods (APMs) as credit cards aren't universally accepted/preferred. Examples of APMs in different countries:
    🇧🇷 PIX for Brazil
    🇮🇳 PayTM for India
    🇨🇳 Alipay & WeChat Pay in China
    🇵🇱 BLIK in Poland
    🇰🇪 MPesa in Kenya

    🇧🇷 PIX for Brazil

    🇮🇳 PayTM for India

    🇵🇭 GCash in the Philippines

    🇸🇪 Swish for Sweden

    🇻🇳 MoMo in Vietnam

    🇮🇩 GOPAY and Dana in Indonesia

    🇨🇳 Alipay and #WeChat Pay in China

    🇧🇩 Bkash for Bangladesh

    🇵🇰 Easypaisa and JazzCash in Pakistan

    🇲🇲 WavePay for Myanmar

    🇹🇭 PromptPay in Thailand

    🇳🇬 USSD in Nigeria

    🇪🇬 Fawry in Egypt

    🇩🇰 MobilePay in Denmark

    🇸🇬 PaynNow in Singapore

  • In some regions (e.g. the US), the payment landscape is fragmented

  • Tailor payments to your target audience. If you target students, be mindful that they might lack credit card access. Also, consider local education norms. In some countries, many are still a student in their mid/late 20s (e.g. Bangladesh's average graduation age is 25.3, compared to the US of 22.6 and the UK of 23.2)

  • Don't assume local debit/credit cards work for international services everywhere. Even in markets with high card penetration, your local users may still not be able to use them for your services

🚀 Ever-evolving local payments

  • Local methods are constantly evolving as existing solutions improve or new technologies emerge. Example: PIX surpassed the long-standing Boleto Bancario as the preferred payment method in Brazil in mid-2021. Stay vigilant for emerging solutions tailored to your target markets

  • Notably, many local payment methods are digital, signalling the direction we're headed

💳 Consider fees

  • Telco payments (Direct Carrier Billing, DCB) are popular in many countries like the Philippines, India, Vietnam and more for convenience and security. But, in some countries (e.g. Turkey), users might revert to card or other payment methods to avoid additional charges imposed by telco carriers on each transaction

  • Credit card fees vary by country. High fees are noted in countries like Argentina, Brazil, Turkey, Colombia, Indonesia and India (World Bank, 2023)

💰 Empower user control

  • Maintaining control over their payments is key for users in many countries - e.g. based on their available funds

  • That's why manual prepaid payments are preferred over recurring payments in some markets. While this choice may reduce retention rates, it's often the only option for locals

  • Local users may use various tricks to maintain financial control. They might opt to pay monthly subscription services using a debit/prepaid card with limited funds. If they don't wish to pay, they simply don't top up the card, preventing automatic payments. Be aware of these habits

Remember, overlooking local payment methods means missing out on potential revenue.

Read about how to craft tailored pricing strategies for global growth.

Business, Culturalisation, Strategy, Payment, PropositionChui Chui Tanpayment methods, Cultralisation, Strategy, Business growth, Business proposition