More than 77% of online transactions in Asia are made using local payment methods—not credit cards. In Latin America, bank transfers and installment payments dominate. And in Europe, methods like iDEAL and Bancontact often outperform Visa or Mastercard in both speed and trust.
Yet many businesses expanding globally still rely almost entirely on international card schemes. The result? Lower conversion rates, higher decline volumes, and frustrated customers who simply don’t see their preferred payment option at checkout.
For merchants, the difference between local payment methods and international card schemes isn’t just technical—it’s strategic. It affects customer trust, cart completion, processing costs, and even how quickly funds settle.
Local payment methods (LPMs) are payment types tailored to a specific country or region. They include direct bank transfers, mobile-based systems, and digital wallets that are closely tied to domestic financial infrastructure. These methods are often more trusted and widely used than international credit cards—especially in markets where card penetration is limited.
Examples by region:
Each of these systems offers a familiar, convenient experience for local shoppers. Some are government-backed (like Pix or UPI), while others are private but dominate their market. In many regions, these methods account for more than half of all ecommerce transactions.
For businesses expanding across borders, understanding and integrating these systems is critical to increasing checkout success. They not only reduce friction at the point of sale but also lower processing costs and improve settlement times compared to global card schemes.
If you’re planning to grow in these markets, this guide on card acquiring for international markets explores how to support both local and cross-border strategies effectively.
International card schemes are the globally established payment networks that enable consumers to make purchases with credit, debit, or prepaid cards across borders. The most recognized names—Visa, Mastercard, American Express, and Discover—operate on standardized infrastructure that allows millions of merchants to accept payments from billions of cardholders worldwide.
These networks are built for scale. They offer consistent settlement, global compliance frameworks, robust anti-fraud measures, and integrations with financial institutions in virtually every country. For years, they’ve powered the backbone of cross-border commerce and continue to play a vital role in both online and in-store transactions.
Every card transaction relies on a chain of connected players:
This standardized process enables near-universal acceptance, particularly in countries with strong banking systems. For merchants, these networks offer a way to support customers from multiple regions without managing individual relationships with local banks or wallets.
The limitations in today’s market
Despite their global reach, card schemes are increasingly being outpaced by local-first payment methods in key regions. For example:
Beyond user preference, cards often come with higher processing fees, foreign exchange costs, and lower authorization rates in markets where local acquirers dominate. For merchants, this can mean more failed transactions, longer settlement delays, and added friction at checkout.
That said, cards aren’t going away. They remain vital for:
Ultimately, card schemes are one part of a broader, more fragmented payment landscape. Their strength lies in global consistency, but local relevance is what increasingly drives conversion.
For merchants operating across multiple markets, choosing between local payment methods and international card schemes isn’t about replacing one with the other—it’s about understanding their strengths and designing a checkout experience that fits customer expectations in each region.
Below is a comparison of key factors that influence performance, cost, and conversion rates:
| Feature | Local Payment Methods | International Card Schemes |
| Speed of settlement | Often instant or same-day (e.g., Pix, UPI) | Typically 1–3 business days |
| Fees | Generally lower, especially for domestic transactions | Higher, with interchange + acquirer + scheme fees |
| User trust | High in local markets (bank familiarity, government-backed) | High globally, but varies by region |
| Fraud protection | Varies by method and region | Built-in fraud detection, chargebacks, and 3D Secure |
| Chargebacks | Rare or not available in many LPMs | Well-defined and enforced processes |
| Cross-border support | Usually domestic only | Built for global use |
| Recurring billing support | Limited; depends on the system | Strong; supports subscriptions and card updater tools |
| Checkout conversion | Often higher in local markets | Higher in regions where cards are the norm |
| Integration complexity | Varies widely; some require local acquiring relationships | Often easier with global PSPs or orchestration layers |
If you’re selling in Brazil and only accept Visa and Mastercard, you’re likely missing out on customers who prefer Pix—an instant bank transfer method with near-zero fees and widespread adoption. On the other hand, if you’re targeting U.S.-based subscribers, cards remain the most frictionless option for recurring billing.
Understanding these differences is crucial when building or expanding your payment strategy. A one-size-fits-all approach may work in your home market, but localization drives conversion elsewhere.
In the next section, we’ll look at when merchants should prioritize local payment methods and where international cards still make sense.
If you’re expanding into new regions or noticing high cart abandonment in specific countries, there’s a strong chance that your checkout isn’t aligned with local payment expectations. Local methods aren’t just a bonus—they’re often the deciding factor in whether a customer completes a purchase.
Situations where local methods make a clear impact:
More importantly, LPMs often increase trust in the checkout experience. When customers see familiar logos and payment flows, they’re more likely to complete the transaction—especially in mobile-first markets.
To support local methods effectively, many merchants turn to orchestration platforms that allow them to plug into regional PSPs without overhauling their backend. This approach is explored further in our guide to international acquiring and local market readiness.
While local payment methods dominate in many regions, international card schemes still play a critical role for global merchants—especially in high-value, cross-border, and recurring transactions.
Scenarios where card schemes are essential:
Rather than viewing cards as outdated, think of them as part of a broader payment mix. When used strategically alongside LPMs, they ensure you’re not excluding key segments of your customer base.
The real challenge isn’t choosing between local methods and cards—it’s managing both. That’s where payment orchestration platforms come in.
With orchestration, you can:
By adding an orchestration layer, merchants gain the freedom to optimize payments country by country, without compromising on control or security.
To see how orchestration helps with cost savings, market entry, and performance, explore the top 10 benefits of using payment orchestration in 2025.
These examples show that payment flexibility isn’t just about preference—it’s about performance.
Why don’t card schemes work well in some countries?
In many regions, local payment infrastructure is more trusted, cheaper, and widely used than cards—especially where card penetration is low or banking systems are highly localized.
Can I use local methods for cross-border payments?
It depends. Some local methods (like SEPA) support cross-border within specific regions. Others (like Pix or BLIK) are domestic only, but can be paired with orchestration to bridge markets.
How do I know which payment methods to prioritize in each country?
Start with customer data—look at where they’re dropping off at checkout. Combine this with market research and regional benchmarks. Platforms like Gr4vy make it easier to test and iterate quickly.
The divide between local payment methods and international card schemes isn’t a conflict—it’s a call for balance. Merchants that win in 2025 and beyond will be the ones who offer both, seamlessly, in a way that fits the needs of each region and buyer.
Doing that well requires a payment infrastructure that doesn’t force trade-offs. It means having the flexibility to offer Pix in Brazil, cards in the U.S., BLIK in Poland, and SEPA in Europe—all without overloading your engineering team or fragmenting your reporting.
Gr4vy’s orchestration platform helps merchants do exactly that—centralizing payment management while keeping you flexible, scalable, and ready for what’s next.
Contact Gr4vy to build a payment strategy that blends global reach with local relevance—without the complexity.
More than 80% of consumers now expect businesses to offer their preferred payment method, according…
Credit card interest directly influences how consumers spend, repay, and prioritize their purchases. Higher interest…
The cost of payment data breaches is rising fast. According to IBM’s 2023 Cost of…
Global commerce is no longer the domain of enterprise giants. In 2025, businesses of all…
From music and movies to groceries and enterprise software, the way we pay for products…
The cost of accepting payments has become a growing concern for businesses across every sector.…