The assumption that credit and debit cards are the universal standard for digital payments is one of the most expensive misconceptions in global commerce. In large parts of Asia, Latin America, and even Western Europe, cards are not the dominant payment method — and businesses that don't offer local alternatives are leaving significant revenue behind.
This guide covers the three major categories of alternative payment methods (APMs) that matter most for international growth: Buy Now Pay Later (BNPL), digital wallets, and local bank transfer schemes.
Global APM adoption has accelerated significantly over the past three years. Digital wallets now account for over 50% of global eCommerce transactions, up from 44% in 2022. In China, digital wallets account for over 80% of all online payments. In Brazil, Pix processed over 40 billion transactions in 2024 — more than cards and boleto combined.
For businesses with global ambitions, APM coverage is not a nice-to-have. In many target markets, it determines whether you're accessible at all.
BNPL has moved from a niche checkout option to a mainstream payment method, particularly for higher-value purchases. Key players vary significantly by market:
For merchants, BNPL increases average order value by 20–30% and reduces cart abandonment at the price sensitivity threshold. The merchant pays a slightly higher fee (typically 2–6%) but captures sales that would otherwise be lost.
Digital wallets range from globally recognized platforms to market-specific tools that dominate regionally:
The key insight for merchants is that wallet adoption is highest among mobile-first shoppers — which is the dominant shopping behavior in Southeast Asia and increasingly everywhere else. Failing to offer the right wallet is often failing to be visible on the most-used device.
Real-time bank transfer schemes have emerged as the preferred payment method for larger transactions in several major markets:
For B2B payments and SaaS subscriptions, local bank transfer schemes offer a compelling combination: lower cost than cards, instant settlement, and growing support for recurring billing.
Adding every APM globally is neither practical nor necessary. The right approach is to map method coverage against your actual and target customer geography, identify the highest-impact gaps (typically the local rail and leading wallet in your top 3 markets), and prioritize those for integration.
For most businesses, covering the major local rails in LatAm (Pix), India (UPI), and Southeast Asia (GrabPay family), plus Klarna for European BNPL, gets you to 80% of global APM coverage with a manageable implementation scope.
The question isn't whether to offer APMs. The question is which ones, in which markets, and in what order — and that answer is different for every business depending on where your customers are.
Book a free 30-minute consultation with the FT3 team. No commitment — just a clear picture of your global path forward.
Book a Free Consultation →