Why 99% of Cross-Border Consumers Insist on Local Payment Methods

Despite the widespread adoption of digital technologies, merchants are finding that cross-border payment complexities continue to pose hurdles to capturing international sales opportunities.

It’s one of the key findings from “How Payments Optimization Can Power an International Commerce Strategy,” from PYMNTS. As global eCommerce is projected to exceed $10 trillion in value by 2030 with a compound annual growth rate (CAGR) of 8% through that year, optimizing these global payment processes is presented as a critical strategy for unlocking market potential.

However, not all merchants are prioritizing shopper convenience when facilitating international purchases, leading to challenges in seamless transactions across borders. Retailers, in particular, are finding cross-border transactions difficult.

Global payments are undergoing rapid transformation, with digital payments, mobile commerce, and local preferences fundamentally altering how consumers shop and pay internationally. What were once considered “alternative” methods, such as digital wallets, account-to-account (A2A) transfers, and buy now, pay later (BNPL) solutions, have now become mainstream.

These digital methods accounted for 66% of global eCommerce value in 2024, a substantial increase from 34% in 2014, and are projected to constitute 79% by 2030. Financial technology firms have been instrumental in this shift, introducing innovative solutions that have driven exponential growth in digital wallets and buy now, pay later (BNPL) transaction values over the past decade. Even as digital options dominate, cards retain relevance, particularly local card brands that lead in certain markets.

Key data points highlighted in the report underscore the importance of payments optimization:

72% of merchants report experiencing higher rates of failed payments with cross-border transactions compared to domestic ones, a friction point that drives customers away.

99% of cross-border shoppers expect to pay with their preferred, customary methods, emphasizing that “all payment is local” and choice is a decisive factor for consumers.

84% of shoppers consider one-click checkout an important factor in deciding where to shop, illustrating the demand for streamlined user experiences and the potential impact of solutions that eliminate manual data entry.

Beyond these headline figures, the report touches upon the imperative for businesses to view payments not merely as a commodity but as a competitive differentiator, especially when expanding globally.

Achieving optimization requires prioritizing digital payment acceptance, ensuring transparency regarding fees, facilitating convenient delivery and returns, offering local currency options to manage foreign exchange risk and build trust, and implementing advanced fraud prevention using artificial intelligence and machine learning.

Third-party payment solution providers can assist merchants in navigating this complexity and tailoring optimization efforts for specific markets. Streamlined user experiences, such as automated retry solutions and payment recovery software, are also vital for reducing payment failures and meeting customer convenience demands.

Ultimately, businesses that invest in optimizing their payment processes are better equipped to reduce friction, capture global demand, strengthen customer relationships, and secure a competitive advantage in the dynamic digital economy.