Online commerce continues to boom worldwide – one forecast estimates global e-commerce sales at around $6-8 trillion by 2025. For merchants eyeing those markets, accommodating how customers pay is just as important as what they sell. In practice, international expansion means much more than shipping overseas: it requires localizing pricing and payments. Shoppers are far more likely to buy when they see familiar currency and payment methods.

In this blog, we explain the key payment factors to consider when selling globally in 2025: accepting multiple currencies, supporting regional payment methods, and managing cross-border fees and compliance.

Global E-Commerce – Accepting Multiple Currencies

Most buyers trust and convert better when they see prices in their currency. Industry surveys confirm this strongly – for example, one report found 76% of online shoppers prefer to pay in their local currency, and another survey showed 92% of customers want prices displayed in their currency. If an e-commerce site only shows USD or another foreign currency, many customers may hesitate or abandon their carts; one study found that about one-third would drop out if prices were shown only in U.S. dollars.

In practical terms, a merchant selects a list of supported currencies (USD, EUR, GBP, etc.), and the storefront automatically converts product prices at current exchange rates. For example, a German customer might see €99 on screen while an Australian shopper sees AU$149 for the same item.

Behind the scenes, the payment processor or gateway applies the conversion and settles the merchant in their base currency. This process is often called a multi-currency payment setup. It works like this: the buyer chooses their preferred currency, the payment system quotes a converted amount (including any small fees or markup), and then the transaction is authorized in that currency.

This seamless handling of conversion usually means the merchant is paid in a single default currency (e.g. USD) but the customer never has to deal with conversion uncertainty at checkout. There is also the option of Dynamic Currency Conversion (DCC). This is a service (typically offered by some gateways or card terminals) that asks customers at payment time if they want to “pay in your home currency” or in the merchant’s currency.

On the plus side, DCC shows the charge in the customer’s currency, so they instantly see the exact amount. Merchants might think this convenience adds trust. However, DCC almost always comes with extra costs embedded. In practice, the exchange rates used for DCC often include a markup or fee that can be 3–5% worse than mid-market rates.

The merchant (or acquirer) profits from the exchange, and the customer ends up paying more than if they had chosen to pay in the local currency and let their bank convert at a better rate. Many travel experts advise avoiding DCC when traveling, for precisely that reason. In an e-commerce context, using DCC can confuse customers when they compare charges, and it may erode trust if they see higher prices. Key points on multi-currency: merchants should generally enable local-currency pricing through their gateway or platform rather than forcing a single currency on all buyers.

Many e-commerce systems (Shopify, Magento, WooCommerce, etc.) and payment providers support enabling dozens of currencies within a single integration. This lets each visitor automatically see and pay in their currency (often via geo-location or a currency selector). The merchant, in turn, usually receives settlement in a single default currency (USD, EUR, etc.), so accounting remains manageable.

Local Payment Methods & Preferences

Beyond currency, the form of payment itself varies widely around the world. In many markets, credit cards are not the default – people may prefer local debit schemes, bank transfers, digital wallets, cash, or other methods. A one-size-fits-all approach risks losing customers who simply can’t or won’t use a foreign card. The rule is: research each target market’s favorites and offer those options at checkout. Globally, digital wallets and instant payment networks are surging. For example, in China, over 90% of online shoppers regularly use digital wallets like Alipay or WeChat Pay.

These apps enable consumers to pay via QR code or app using funds linked to their bank or e-wallet, and have replaced mainly card payments in Chinese e-commerce. Similarly, in India, the Unified Payments Interface (UPI) has skyrocketed: in May 2025 alone, UPI processed 18.6 billion transactions, powering instant payments across apps and stores.

E-commerce sites selling to India should therefore consider UPI integration or popular wallets like Paytm, Google Pay, PhonePe, etc. In Southeast Asia, local wallets like GrabPay, OVO (Indonesia), and PromptPay (Thailand) often top usage. In Japan, credit and debit cards still lead (over 60% of e-commerce payments). Still, even there, mobile wallets (for instance, PayPay) and convenience-store cash-payments (Konbini or pay-on-delivery) are significant. In Europe, by contrast, open-banking transfer methods have taken off: for example, Dutch shoppers overwhelmingly use iDEAL (bank transfer), Belgians use Bancontact, and Poles use BLIK. Failing to offer the proper local methods causes roughly 44% of European customers to abandon their carts.

Even within Europe, preferences vary: Germans may favor direct bank transfers or PayPal, while Brits still lean heavily on cards or digital wallets. Latin America is another region with unique habits: Brazil’s instant-payment system Pix is now ubiquitous, and Brazil also uses the boleto bancário (cash voucher) for many online sales.

Mexico sees huge usage of cash-voucher networks like OXXO – customers pay at a corner store using a barcode rather than using a card. To illustrate, the image below highlights five top methods in Latin America (Brazil, Mexico, Chile, etc.), including Pix and OXXO.

In other emerging markets (parts of Africa, the Middle East), mobile money systems like M-Pesa, MTN Mobile Money, or Vodafone Cash serve as mainstream payment rails. Across many of these regions, cash-on-delivery remains popular for local delivery, especially where trust in online card payments is low – though COD is gradually declining.

Local preferences by region (examples):

• China: Alipay, WeChat Pay (mobile QR wallets, ~90% user penetration).
• India: UPI and domestic wallets (Paytm, Google/PhonePe), plus growing BNPL services (e.g., Razorpay, Simpl).
• Europe: A broad mix – iDEAL (NL), Bancontact (BE), EPS (Austria), Giropay and SOFORT (Germany), along with PayPal and growing use of Apple/Google Pay.
• Latin America: Pix and Boleto in Brazil; OXXO cash in Mexico; WebPay (bank transfer) in Chile; local wallets like MercadoPago or PayU in various countries.
• Africa/Middle East: Mobile money (M-Pesa, Airtel Money); local debit networks; Egypt’s Fawry; Nigeria’s Paystack supports local Naira networks; etc.

In practice, supporting all these methods can be a headache if done piecemeal. This is where a good payment gateway or aggregator pays off. Many global gateways (Stripe, Adyen, Worldpay, etc.) let you plug in dozens of local options through one integration.

In effect, you list your target country and the gateway automatically offers the dominant methods there. For example, a single API call or checkout setup can enable Alipay, WeChat Pay, GrabPay, SEPA transfers, iDEAL, OXXO, and more, without building each connection yourself.

The result: one integration, many local payment options, which simplifies maintenance and upgrades. Ultimately, the goal is choice: empower customers to pay how they prefer. Offering a menu of local-friendly options boosts trust and conversion.

It also signals that you understand and respect each market’s culture. Even if you start with cards and PayPal, plan to add at least one or two local methods in each region. Do market research or consult reports on payment trends (many providers publish country-specific guides). Then configure your gateway to include them. In the end, a checkout that feels “local” – currency, logos, and all – can dramatically improve uptake globally.

Cross-Border Fees and Compliance

Selling overseas isn’t just about customer experience; the financial and regulatory side is equally important. Every international transaction can incur extra costs and legal obligations. Innovative businesses aim to minimize fees and comply with the rules in each market. One significant cost is cross-border fees on payment transactions.

Banks and processors typically charge foreign-transaction fees (often 1–3% of the amount) plus currency conversion spreads. For example, if you process a card payment where the card is issued abroad, the issuer or your acquirer may tack on an extra percentage for the cross-border nature and currency conversion. These fees can eat into margins, especially on high-volume sales. To reduce them, consider these tactics:

• Local currency accounts:

If possible, open a merchant account or multi-currency wallet in the target market’s currency. Receiving and holding funds in local currency avoids repeatedly converting small amounts.

For instance, if you sell heavily in euros, take payouts in EUR, and use them to fund euro expenses or convert in bulk at better rates. Many fintech platforms now let businesses open “local” accounts remotely, without needing a physical office abroad. This can cut out forex fees entirely for those receipts.

• Use local payment rails:

Accepting payments via a local method often bypasses foreign fees. For example, WebPay in Chile or Pix in Brazil let you settle in local currency using onshore networks.

Likewise, cash-payment options (like OXXO) deposit local currency into your account without any international fee—research gateways that give access to local rails in each country, so you minimize cross-border card transactions.

• Prefer interbank FX rates:

When currency conversion is unavoidable, shop for the best rate. Many business accounts charge a significant markup over the market rate (for instance, “plus 2–3%”). Instead, seek providers that offer interbank or wholesale rates with a small fixed spread.

Even a 1% fee on a large volume can save thousands. Locking in rates a few days ahead (when rates are favorable) can also protect margins.

• Batch and consolidate payments:

If paying suppliers abroad, grouping transactions can reduce fixed fees. For example, one large wire transfer might incur a single $20 fee instead of five transfers each with its fee.

Likewise, some platforms let you schedule periodic payouts instead of instant transfers. The trade-off is potential timing risk, but for many B2B sellers, it’s worthwhile.

Putting these tactics together, you want to “pay like a local.” For instance, you could route Euro sales to a German bank account, and pay European vendors from that same balance; do the same for pounds, reais, etc. Modern payment providers support this out-of-the-box, offering multiple local bank details and direct connections to card networks. By eliminating intermediaries, you cut out many hidden charges.

Beyond costs, regulations, and tax compliance are crucial. When selling into another country, you may have new duties:

• VAT/GST and sales tax:

Many countries require you to collect value-added tax or goods-and-services tax on sales to their consumers. In recent years, over 160 countries have introduced VAT/GST on imported goods. Often, once your sales in a country exceed a small threshold, you must register for a local tax ID, charge the local tax rate at checkout, and remit it to that government.

For example, U.S. merchants selling digital goods to Europe now must collect EU VAT from European customers. This means issuing compliant invoices and filing tax returns overseas – a non-trivial task. Some sellers outsource this to tax service providers or use a “seller of record” solution, but in all cases, it’s essential to plan for these obligations in your pricing.

• PSD2 and Strong Customer Authentication (Europe):

If you serve customers in the EU/EEA, you must comply with the EU’s Payment Services Directive (PSD2). A key rule is Strong Customer Authentication (SCA). This means most online card transactions from EU banks now require two-factor authentication (like 3D Secure 2) – e.g., a password plus a one-time code. If your checkout flow doesn’t support SCA, EU banks may decline transactions.

Ensure your payment provider is fully PSD2-compliant, which usually means enabling 3D Secure on all relevant cards. Some businesses even set up a local EU merchant account or entity so that EU transactions are processed as domestic, which can simplify SCA and reduce fees.

• Data privacy (GDPR and equivalents):

Handling customer data globally means respecting privacy laws. The EU’s GDPR is the most stringent regime, but many other countries (UK, Canada, Brazil, etc.) have similar rules. If you collect personal payment or shipping data from EU citizens, you must follow GDPR principles (secure data, get consent, allow data access or deletion, etc.).

Non-compliance carries heavy fines – up to 4% of global revenue or €20 million. In practice, use a payment gateway and CRM that are GDPR-certified, keep minimal data, and be transparent in your privacy notices. Note that even outside the EU, courts often rule that GDPR applies if EU residents are involved.

• Other local regulations:

Some countries have specific rules around payments. For instance, certain markets require a local entity to obtain money-transmitter licenses, or have rules about accepting only domestic cards (China), or limits on sharing transaction data. It’s wise to consult legal expertise for major new markets. However, one big help can be using a well-established cross-border payment partner.

Many global payment processors already handle PCI compliance and regional regulations on your behalf. In other words, by routing through a trusted global gateway, you inherit their compliance infrastructure (fraud checks, data security, certification, etc.) and reduce your burden. The investment in a good gateway is often worth the peace of mind.

Conclusion

Expanding internationally means examining your payment setup end-to-end. Ensure pricing is in local currency (with or without DCC as appropriate), integrate key local payment methods for each market, and minimize extra fees through intelligent routing and provider choice. Simultaneously, stay on top of regulations – VAT/GST, PSD2/SCA in Europe, data privacy laws, and any local payment rules.

Companies that navigate these correctly not only avoid penalties but also enhance customer trust and loyalty. In 2025 and beyond, partnering with experienced cross-border payment providers (or specialists in global tax) can significantly simplify this complexity, allowing you to focus on selling rather than paperwork or FX hedging. With the proper setup, businesses can make global sales feel as smooth as selling locally, unlocking trillions in new revenue.