Local payment methods are an opportunity for competitive advantage

In a new white paper, “The shift to local payment methods – six recommendations for digital merchants“, Boku investigates a significant shift towards local payments.

As outlined in the paper, Boku has worked with Juniper Research to analyse e-commerce payment data from 37 major markets worldwide.

Everywhere in the world, it suggests, consumers are beginning to turn their backs on card-based payment.

By 2028, the paper predicts, card-based payment, including card-linked wallets, is set to account for just 41% of global ecommerce payment value – down from 50% in 2022.

Given the growing prevalence of these payment methods, Boku argues, they should be on the radar of all digital merchants – because it makes sense from both a customer service perspective, and a commercial perspective

The paper goes onto suggest that digital merchants should regard local payment methods as an opportunity for differentiation, innovation and operational efficiency. And, for merchants that are considering how best to integrate local payment methods.

The paper makes six recommendations:

Follow the lead of the tech giants, like Netflix and Amazon, that invest considerable time and resource into selecting and integrating new payment choices, and other digital merchants can learn from their approaches.
Dig into quality – not just quantity because, although many vendors claim to offer multiple payment methods through a single connection, different providers have very different capabilities and service quality standards.
Evaluate network depth – not just network reach, because some vendors have inherited a range of legacy platforms, and/or work through multiple intermediaries, and are therefore prone to multiple points of failure.
Appreciate the impact of tokenisation, as this is becoming a key consideration in the world of local payment methods, especially with regards to recurring payments and mobile-on-file payments.
Get clarity on settlement timescales, because accelerated settlement ought to be one of the key benefits of local payment methods, yet some vendors are unwilling or incapable of passing on the benefits.
Understand the customer success ethos, because establishing a relationship with a vendor is just the first step – merchants should therefore quiz vendors about their commitment to ongoing performance optimisation, and whether they will help with things like checkout optimisation, or user acquisition.


Download a free copy the new white paper now for more on how the rise of local payment methods are going to impact the way we do business in the future.


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