Local payment preferences refer to the specific ways that customers in different countries and regions prefer to pay for goods and services online. While credit cards are common in North America, they are far from the only method used globally. Failing to offer familiar, trusted payment options can be a major source of friction and a direct cause of lost revenue.

For example, a customer in Germany might expect to use SEPA Direct Debit, while someone in India might prefer UPI (Unified Payments Interface), and a shopper in Japan might want to use Konbini, a system that allows them to pay cash at convenience stores. These are not just minor preferences; they are deeply ingrained financial behaviors built on local banking systems, infrastructure, and cultural trust.

Understanding regional payment behaviors requires looking beyond your own experiences. Different regions have developed unique financial ecosystems for a variety of historical and technological reasons. Here’s a brief overview of some popular methods:

• Bank Transfers: In many parts of Europe, direct bank transfers are a dominant form of payment. Examples include iDEAL in the Netherlands, Giropay in Germany, and SEPA Direct Debit across the Eurozone. Customers trust these methods because they are secure and operate through their own familiar banking apps.
• Digital Wallets: Services like Alipay and WeChat Pay are ubiquitous in China, handling a vast majority of mobile transactions. In India, UPI has exploded in popularity, allowing for instant bank-to-bank transfers via mobile apps like Google Pay, PhonePe, and Paytm.
• Cash-Based Vouchers: In regions where credit card penetration is lower, such as parts of Latin America and Asia, cash-based systems remain vital. Services like Konbini in Japan or OXXO in Mexico allow customers to complete an online purchase by paying with cash at a local convenience store or payment center.
• Buy Now, Pay Later (BNPL): Services like Klarna and Afterpay have become global phenomena, particularly popular among younger consumers in Europe and Australia. They offer the flexibility of paying in installments, which can be a deciding factor for larger purchases.

Offering local payment options isn’t just a nice-to-have feature—it’s a fundamental part of building a successful global product. When customers see a familiar payment method, it builds immediate trust and reduces cognitive load, making them significantly more likely to complete a purchase.

Here’s why it matters:

• Increased Trust and Security: Customers are often wary of entering credit card information on unfamiliar websites. Offering a payment method that redirects to their own bank or a trusted local provider removes this anxiety.
• Reduced Cart Abandonment: Payment friction is a leading cause of cart abandonment. If a user reaches the checkout page and doesn’t see an option they can or want to use, they are likely to leave.
• Higher Authorization Rates: Local payment methods often have higher success rates than cross-border credit card transactions, which can be flagged for fraud by issuing banks.
• Market Expansion: To genuinely compete in a new region, you need to adapt to its commercial norms. Local payment methods are as crucial as language and currency localization.

While the benefits are clear, building and managing a truly global payment stack is a complex engineering challenge. Developers and product managers must consider several factors:

• Integration Complexity: Each payment method is a separate integration, with its own API, authentication flows, and documentation. Managing dozens of these integrations is a significant technical burden.
• Operational Overhead: Reconciling payments from multiple providers, handling different currencies, and managing payouts can quickly become an accounting nightmare.
• Regulatory Compliance: Different regions have different rules regarding data security, privacy (like GDPR), and financial reporting. Staying compliant across all markets is a continuous effort.
• User Experience: The checkout flow for each payment method can be different. Ensuring a smooth, consistent, and intuitive user experience across all options requires careful design and testing.

To succeed, focus on a strategic approach rather than trying to support every payment method at once.

1. Research Your Key Markets: Before entering a new region, identify the top 2-3 payment methods your target audience uses. Don’t assume your home market’s preferences will apply.
2. Use a Payment Service Provider (PSP): Instead of integrating each method individually, partner with a PSP like Stripe, Adyen, or Braintree. These platforms bundle dozens of local payment methods into a single integration, abstracting away much of the complexity.
3. Display Prices in Local Currency: Always show prices in the customer’s native currency. This simple step eliminates mental math and makes your pricing feel more relevant and transparent.
4. Dynamically Show Relevant Options: Don’t overwhelm users with a list of 50 payment options. Use geolocation data to dynamically display the most relevant methods for the customer’s region at the top of the list.

Kinde is designed to simplify the complexities of building and scaling software products, including the financial components. While Kinde is not a payment processor itself, it provides a robust billing infrastructure that integrates directly with Stripe, one of the world’s leading payment service providers.

This integration allows you to leverage Stripe’s extensive global payment capabilities. By connecting your Kinde account to Stripe, you can support multicurrency billing out of the box. You can set a default currency for your plans, and Stripe handles the complexities of currency conversion and processing payments from customers around the world. This architecture lets you focus on building your product while providing a checkout experience that feels local and trustworthy to your global user base.

• The Kinde billing model
• Step 2 Connect to Stripe and set policies
• Step 3 Set default billing currency