Global payment
methods
 guide

The global payment methods guide was created by Adyen to help businesses expand globally. Adyen is a payments platform that makes it easy to reach shoppers around the world by supporting all key local payment methods with a single integration.

In this guide: 

  • A breakdown of key payment methods in 26 markets around the world.
  • Inside tips on payments best practices in each market to get the most out of each country.
  • Information on how Adyen can help you go global with a single payments partner.

Get ready to go global

This is an exciting time for ecommerce.

The global ecommerce market is projected to double, climbing from $2 to $4 trillion by 2020. On top of that, a report by McKinsey predicts that the flow of goods and services across borders will triple.

Businesses of all sizes are expanding across borders to reach shoppers around the world. But, before you rush to launch localized websites and set up entities in new markets, it’s important to consider how these international shoppers want to pay.

Hundreds of millions of your potential customers
don’t use international credit cards

  • In China, Visa and Mastercard make up a tiny proportion of online payments.
  • In Brazil, most cards issued are not enabled for international use.
  • In Germany, three quarters of shoppers prefer not to pay with credit cards.

Instead, shoppers in these markets use an variety of local payment methods, such as Alipay, UnionPay and WeChat Pay in China, Boleto and domestic cards in Brazil, and SEPA direct debit, SOFORT, and Giropay in Germany.


The rise of mobile wallets

Mobile wallets are purpose-built to make smartphone payments easy. They’re growing steadily, but consumer adoption still varies in each market. 

Apple Pay is available in the US, Canada, Denmark, France, Finland, Italy, Spain, Sweden, Switzerland, Turkey, the UK, Brazil, Australia, Hong Kong, New Zealand, Singapore.

Google Pay is available in the US, Belgium, Ireland, Poland, the UK, Australia, Hong Kong and Singapore.

Credit cards for businesses? Not always...

Many local businesses don’t have a business credit card but use their bank account for transactions. Especially in Europe, bank transfers and direct debits are the preferred SME payment methods for online use. So it’s important to accept iDEAL in The Netherlands, SEPA Direct Debit in Eurozone countries, and online banking in the Scandinavian and Eastern European regions.

Read on to discover how to reach more shoppers
with the right mix of targeted payment methods in each market

Asia Pacific

Asia Pacific is home to over 4.5 billion people – nearly 60% of the world’s population. It’s a diverse region with seven of the world’s ten most populous countries including China and India. Although APAC is said to be leading several trends, including ecommerce and mobile payment adoption, it’s also one of the most fragmented regions when it comes to payments.

Understanding APAC's unique payments and cultural landscape will help global businesses take better advantage of the opportunities and enormous potential the region presents.

Markets such as China, Japan, Indonesia, and the Philippines don’t require businesses to set up a local entity to start connecting with local shoppers. From a payments perspective, this means that, with the right payments partner, bringing your brand to shoppers in these markets may be easier than you think.

Adyen’s local credit card acquiring licenses in countries including Australia, Hong Kong and Singapore help connect businesses directly to major card schemes.

Australia and New Zealand

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An economic powerhouse in Asia Pacific, Australia enjoyed its 26th recession-free year in 2017. Its booming retail and tourism sectors have attracted worldwide attention, making it a great option as a base in APAC for global companies.

According to DHL ecommerce, Australian shoppers are the second-most likely in the world to buy online from overseas businesses and cross-border ecommerce is expected to grow at an average of 29% per year until 2020. When it comes to payments, over 50% of retail transactions in Australia are made with credit and debit cards.

Similarly, card payments are popular in nearby New Zealand with approximately 1.5 billion electronic card transactions made annually. While cash remains an important method, New Zealand has the lowest proportion of cash to GDP in circulation in the world.

Australia

GDP:
US $ 1.205 trillion

Population:
24.13 million

New Zealand

GDP:
US $ 186.4 billion

Population:
4.69 million

Adyen tip:
With no requirements to set up a local entity, a card-dominated payment culture, and a population already used to buying from international sites, Australia is a great strategic center for international brands looking for a base in Asia Pacific. Businesses in Australia can leverage Adyen’s direct credit card acquiring license to take advantage of the benefits of local acquiring such as higher card authorization rates. Processing domestically also means you’ll benefit from the Australian Interchange fees cap.

Popular payment methods in Australia and New Zealand:
•   POLi
•   Ewallets
•   American Express
•   Visa
•   Mastercard


China

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China is the biggest retail ecommerce market in the world, expected to reach US $1.7 trillion by 2020. The country is a driving force behind mobile commerce (mcommerce). According to data from Euromonitor International, mobile commerce mcommerce out-ranked desktop purchases back in 2015. And, as of 2016, 66% of digital purchases were made on a mobile device. That’s US $450.3 billion in mobile purchases. The top three payment methods are Alipay, UnionPay and WeChat Pay.

[GUIDE] Learn more about seizing the golden opportunity in China

 

GDP
US $ 11.2 trillion

Population
1.379 billion

Adyen tip:
It’s not mandatory to set up a local entity to sell to Chinese shoppers. With a payments partner that supports key local payment methods, you can quickly reach over 1 billion shoppers in China. Mobile payments are important as most shoppers from first-tier and second-tier Chinese cities are used to buying on their mobiles and via apps.

Popular payment methods in China:
•   Alipay
•   UnionPay
•   WeChat Pay
•   Visa
•   Mastercard

 

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Alipay

With around 50% payments market share, Alipay is the largest local payment method in China. It’s owned by ecommerce conglomerate Alibaba and provides payment services for major Alibaba ecommerce platforms such as Taobao and Tmall, as well as over 400,000 Chinese businesses. It’s simple to set up Alipay, and your shoppers can enjoy a frictionless experience whether they’re shopping online, on mobile or in store.

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UnionPay

UnionPay is the largest card scheme in the world by number of cards issued. It’s also the only interbank network in the market (excluding Hong Kong and Macau) linking the ATMs of 14 major banks and many smaller banks throughout Mainland China. Owned by the central bank, it has a monopoly on processing CNY-denominated transactions in China. This makes UnionPay a vital part of the payments mix for Chinese shoppers.

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WeChat Pay

WeChat Pay is China’s fastest growing payment method. It forms part of the WeChat ecosystem, which is a social network, work collaboration tool, and commerce platform rolled into one. WeChat Pay is supported online, on mobile and in store. Transactions take place in the app, either via the retailer’s official WeChat account or via the in-app web browser. This makes it easy for you to provide a seamless shopping and payment experience for WeChat users.


Hong Kong

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Hong Kong is an important financial center in Asia Pacific – especially because of its proximity to China, the world’s largest economy by purchasing power parity according to IMF.

Often dubbed “the world’s freest economy”, Hong Kong is a leading global financial hub, as well as an attractive and strategic base for international companies. Both Singapore and Hong Kong are close contenders when it comes to being the best place from which to do business in Asia.  

Its position as Special Administrative Region of the People’s Republic of China presents many opportunities for businesses as Beijing’s “One Belt, One Road” gains momentum. The policy aims to promote connectivity and cooperation among several countries in Asia and Europe.

Representing over US $14 billion in ecommerce in 2017, its high internet and smartphone adoption rates continually drive its ecommerce boom. Credit cards are the top payment method for ecommerce transactions, and are expected to remain the most popular payment method.

Mobile wallets are gaining traction among Hong Kong consumers. Both Alipay and WeChat Pay have announced their expansion plans outside of mainland China. Contactless and mobile payments are increasingly popular with more and more businesses adding Apple Pay and Google Pay to their payment mix.

GDP:
US $ 320.9 billion

Population:
7.347 million

Adyen tip:
Adyen’s acquiring license in Hong Kong offers businesses a direct connection to Visa and Mastercard. Not only can businesses enjoy benefits such as higher card authorization rates, but also deeper data insights. No local entity is required for cross-border transaction. Adyen also offers local payment methods Alipay, UnionPay and WeChat for businesses catering to Chinese shoppers.

Popular payment methods in Hong Kong
•   American Express
•   UnionPay
•   Mastercard
•   Visa


India

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India has traditionally been a cash-dominated economy, with cash and cheques accounting for 85% of payments. And, while we expect strong electronic payments growth in India over the next three to five years, cash on delivery (COD) still accounts for 60% of ecommerce payments.

The growth of electronic payment is very much facilitated by the Indian government, from its demonetization announcement in November 2016, to initiatives such as Rupay and UPI. Investments by global companies such as Alibaba, Softbank, Amazon and Google in mobile wallet solutions in the country will also help to push the needle.

 

GDP:
US $ 2.264 trillion

Population:
1.324 billion

Adyen tip:
3D Secure is mandatory on all domestic debit card transactions in India, where second-factor authentication actually has a positive impact on authorization rates. We recommend applying 3D Secure to all transactions in the Indian market.

[ARTICLE]: How to win with Dynamic 3D Secure

Popular payment methods in India:
•   American Express
•   Online Banking
•   Mastercard
•   Visa


Indonesia

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With a 200 million population, Indonesia is one of the largest undeveloped market opportunities in Asia. It’s poised for enormous growth, with market size expected to rise to US $11 billion in 2019.

The bright outlook is driven by demographic trends. Less than 40% of the population is online, bank penetration is under a quarter, and the number of debit and credit cards issued is at only 15%. Like many developing economies, the shift online is happening through mobile, with over 90% of online users in Indonesia going online via their phone. But bear in mind: Cash on delivery is still the most popular payment method for retail goods. 

[GUIDE] Reach 600 million shoppers in Southeast Asia

 

GDP:
US $ 932.3 billion

Population:
261.1 million

Adyen tip:
Indonesia is a highly regulated market where a local entity is typically required to process locally, and the Indonesian rupiah (IDR) cannot be repatriated. However, Adyen makes it possible for you to offer domestic payment methods in Indonesia with settlement in USD.

Popular payment methods in Indonesia:
•   Doku Wallet
•   Mastercard
•   Convenience Store
•   Visa
•   Online banking
•   ATM payments


Japan

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Japan is the world’s third-biggest ecommerce market. It’s a cash-dominated market where cash on delivery is a popular payment method. Konbini allows customers to pay for online purchases in 24/7 convenience stores. Local credit card JCB is also popular, as are international credit cards.

GDP:
US $ 4.939 trillion

Population:
127 million

Adyen tip:
Like-for-like cross-border settlement is possible in Japan, so shoppers aren’t impacted by cross border fees, which makes it a smooth experience. With Adyen, you can support Konbini without a local entity.

Popular payment methods in Japan:
•   American Express
•   JCB
•   Konbini
•   Mastercard
•   Visa


Malaysia

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Like Indonesia, Malaysia is enjoying rapid ecommerce growth, driven largely by mobile. Yet there are some significant differences between the two markets. Malaysian shoppers are comparatively open to cross-border shopping, with 40% of online transactions happening cross-border. And, among Southeast Asian markets, Malaysia is second only to Singapore in terms of credit card penetration and usage.

The growing use of mobile devices may speed Malaysia’s ecommerce growth, as mobile payments can be made from a prepaid wallet instead of a bank account.

 

GDP:
US $ 296.4 billion

Population:
31.19 million

Adyen tip:
Malaysia has strong financial regulatory controls, and the Malaysian Ringgit is a non-tradable currency that can’t be settled outside the country. But the good news is that processing cross-border payments through an international acquirer doesn’t trigger an International Issuing fee for the shopper. So if you take this approach, you’re not impacted when processing Malaysian Ringgit cross-border. Local issuers expect 3D Secure authentication, so we recommend routing all transactions via 3D Secure.

Popular payment methods in Malaysia:
•   Ewallets
•   Mastercard
•   Visa
•   Online banking


The Philippines

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The Philippines is probably one of the most underestimated ecommerce markets in Southeast Asia. As the second most populous country after Indonesia, its ecommerce market can expect an annual growth rate of 101.4% until 2018. This is driven mainly by high mobile penetration. Filipinos are among the most prolific mobile users in the world, and smartphone penetration is now 30% of the population.

GDP:
US $ 304.9 billion

Population:
103.3 million

Adyen tip:
A local entity is not required and cards can be processed cross-border without international fees. We recommend that international merchants keep cards cross-border and enable local payment methods as well. Authorization rates tend to be lower in the Philippines than other markets, mainly due to the young generation being less willing to pay for digital content. We see lower conversion rates especially for content like games and music downloads.

Popular payment methods in the Philippines:
•   GCash
•   Bank Transfer
•   Visa
•   Mastercard


Singapore

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A vital financial hub for global businesses, Singapore was recently ranked as the third largest financial center in the world, after London and New York. Fintech, digital payments and blockchain technology are gaining traction as continuous innovation and tech growth remain key for Singapore’s economic development.

Despite its small size, the city-state’s extremely business-friendly environment and many international ties make Singapore a strategic center for businesses expanding in Asia and globally.

Like both Australia and Hong Kong, ecommerce in Singapore is thriving and 55% of transactions are cross-border. Smartphone adoption is about 90% and mobile commerce continues to grow as shoppers become accustomed to buying on their mobile devices.

In Singapore, credit cards are the top payment methods, followed closely by bank transfers and NETS payments. Contactless and ewallet payments like Apple Pay and Google Pay are also picking up pace.

GDP:
US $ 297 billion

Population:
5.607 million

Adyen tip: 
Adyen’s direct credit card acquiring license in Singapore allows businesses to connect directly to Visa and Mastercard. This means brands can take full advantage of Adyen’s single platform solution to unify their businesses covering payments online, in-app, or in store at the point of sale (POS). Local acquiring also offers great benefits such as higher card authorization rates and richer data insights.

Popular payment methods in Singapore:
•   Visa
•   Mastercard
•  American Express
•   Wallets
•   Bank transfer

 


South Korea

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South Korea is the third-largest retail ecommerce market in Asia Pacific after China and Japan. It has the highest credit card penetration in the world, and the average South Korean shopper has five credit cards, compared to two in the US. 80% of the population owns a smartphone and 44% uses it for shopping.
 

GDP:
US $ 1.411 trillion

Population:
51.25 million

Adyen tip:
Most local cards are co-branded with Visa and Mastercard. Until April 2016, they required a market-specific authentication process, which only worked in Internet Explorer. While this is no longer the case, it can take longer than expected to migrate off ActiveX authentication services.

Payment methods used in South Korea:
•   Visa
•   Mastercard
•   Bank transfer
•   Local cards


Thailand

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Thailand has huge ecommerce growth potential. Online retail transactions currently account for as little as 0.5% of the industry, but it’s growing by an estimated 30-35% annually. With internet penetration estimated at 60% and mobile the primary access device for most new shoppers, mcommerce is key.

GDP:
US $ 406.8 billion

Population:
68.86 million

Adyen tip:
Thailand has fewer regulatory restrictions than some Southeast Asian countries, which makes it easier to go domestic or enable cross-border payments.

Popular payment methods in Thailand:
•   Visa
•   Online banking
•   Convenience stores
•   Mastercard


Expanding to Asia?

Chat to a local payments expert

Europe

Europe continues to pursue the goal of a single digital market. This includes the decentralization of financial services and heightened security regulations that come with the Revised Payment Services Directive (PSD2).

[ARTICLE]: How PSD2 will impact the payments landscape

Online retail in Europe is growing exponentially, especially in Southern Europe, where growth is fueled by mcommerce thanks to its young population. But there are still many nuances when it comes to connectivity and openness to cross-border shopping.

According to the Ecommerce Foundation 2017 European Ecommerce Report, connectivity is growing steadily, with 13% growth in the last 5 years. Northern Europe leads the way with 93% online, followed by Western Europe at 89%, Central Europe at 86%, Southern Europe at 71%, and Eastern Europe at 66%.

When it comes to cross-border purchases, Luxembourg is in the lead, with 74% buying from overseas retailers. Russia is also emerging as a market open to buying from international sites. And, according to Adyen data, Swiss, Belgian, Irish, Dutch and German shoppers are open to making orders across borders. Spanish shoppers still prefer to shop domestically.

Yet despite the openness of shoppers in countries such as Germany and the Netherlands to shop from international websites, local payment methods dominate. A local entity is not required to accept local payment methods in each market, but you’ll need an entity in at least one EU country to accept cards across all markets.

Recurring payments in Europe

Unlike credit cards, not all local payment methods support recurring payments.

Adyen has implemented a unique approach to recurring payments in for several methods in Europe. Its solution for iDEAL and Giropay combines e-banking with SEPA Direct Debit, Bancontact and SOFORT for future payments.

Belgium

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Belgian shoppers are relatively open to making cross-border purchases, with 25% of transactions taking place on foreign sites.

The most popular method in Belgium is Bancontact, which has more cards in circulation than there are Belgian citizens. This is a debit card that offers 100% guarantee on the payment and can be used across all channels (online, mobile and POS). It’s also possible to process recurring transactions with Bancontact via SEPA Direct Debit.

Overall, the most common payment methods mix for online payments are Bancontact, credit cards (Visa/Mastercard and Amex) and debit cards (Maestro). PayPal, SEPA and Sofort are also popular.

 

GDP:
US $466.4 billion

Population:
11.35 million

Adyen tip:
Today many shoppers attempting to buy with their smartphones are blocked because the mobile version of Bancontact isn’t supported. The traditional version of Bancontact requires a device from the bank (digipass/ Card Reader) to generate a token for authentication. This can be a real conversion-killer when it comes to mobile. The mobile version makes it easy for shoppers purchasing on desktop since they only need to scan a QR code to authenticate themselves.

Note: If you support Bancontact/Maestro make sure the CVC code isn’t mandatory because there’s no CVC on Belgian Maestro cards.

Popular payment methods in Belgium:
•   PayPal
•   Visa
•   Mastercard
•   Bancontact


France

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France represents a great opportunity for expansion, with ecommerce sales expected to grow to $64 billion in 2018.

Cartes Bancaires (CB: the French local scheme) dominates the payments landscape, and most French cards are Cartes Bancaires co-branded with Visa or Mastercard. As a direct CB member, we can achieve the highest possible authorization rates for our customers.

 

GDP:
US $ 2.465 trillion

Population:
66.9 million

 

Adyen tip:
No local entity is required for local acquiring in France, although (as is the case with most Eurozone countries), an EU entity is mandatory.

Popular payment methods in France:
•   American Express
•   Mastercard
​​​​​​​•   PayPal
​​​​​​​•   Visa
​​​​​​​•   Cartes Bancaires


Germany

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Germans are some of the most open cross-border shoppers in the world, with over 50% of online retail purchases taking place on an international website.

Yet despite this willingness, Germany is one of the most fragmented markets when it comes to payment methods. Non-credit card payment methods such as SEPA direct debit, SOFORT, and Giropay account for the majority of online transactions. In retail (specifically fashion) another popular payment method is open invoice. This is where a third party pays out for products and services and then collects payment from the shopper after delivery.

[ARTICLE]: SEPA Direct Debit: 10 best practices

 

GDP:
US $ 3.467 trillion

Population:
82.67 million

Adyen tip:
If you’re planning to enter Europe you should consider Germany as one of the first markets to enter. This is because of its size and its openness to cross-border payments.

Popular payment methods in Germany:
•   Ratepay
•   Mastercard
•   Visa
•   Klarna
•   PayPal
•   Giropay
•   SEPA Direct Debit
​​​​​​​•   Sofort


Ireland

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In Ireland, online shopping revenue grew by 45% in 2016, with mobile a driving force. Debit cards are very popular, with Visa leading the way.
 

GDP:
US $ 294.1 billion

Population:
4.773 million

Popular payment methods in Ireland
•   Mastercard
•   Visa


Italy

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Italy is the fourth biggest ecommerce market in Europe. More than 80% of Italians are now online, and this is expected to increase by 16% within the year. In 2016 Italy had 13 million frequent online shoppers spending about €1,400 each.

Italian shoppers are increasingly mobile, and PayPal is a popular mobile method. Pre-paid cards are also popular due to (perceived) better security and decreased costs. The most popular credit cards are Visa and Mastercard and the most popular prepaid debit card is Postepay (co-branded with Visa). The local debit scheme PagoBancomat has announced it will also soon launch a web payment method. With its brand recognition and high card penetration, that method might grow quickly. 

GDP:
US $ 1.85 trillion

Population:
60.6 million

Popular payment methods in Italy:
•   American Express
•   PayPal
•   Mastercard
•   Visa


The Netherlands

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While purchasing from international websites is relatively common in the Netherlands, the most popular payment method, iDEAL, is local to the Dutch market. iDEAL is an inter-bank system covered by all major Dutch consumer banks, allowing shoppers to use their bank account for online purchases. Direct debits and open invoice payments are also popular.
 

GDP:
US $770.8 billion

Population:
17.02 million

Adyen tip:
Due to its ease of doing business, you should consider the Netherlands as one of the first European markets to enter. Offering iDEAL as a payment method is crucial.

Popular payment methods in the Netherlands:
•   iDeal
•   SEPA Direct Debit
•   Mastercard
•   Visa
•   PayPal
•   Klarna


Poland

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Poland is the ninth largest country in Europe and has a population of over 38 million people. Online banking and cash on delivery are the most preferred payment methods. In Poland, online banking known as Pay-by-links is the most popular payment method and can represent up to 75% of the e-payment mix.

GDP:
US $ 469.5 billion

Population:
38 million

Adyen tip:
The Polish market is easy to enter, with no local entity required and like-for-like settlement supported. However, Polish issuers require cardholders to register their card first.

Popular payment methods in Poland:
•   Pay-by-links
•   Visa
•   Mastercard
•   PayPal


Portugal

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Ecommerce in Portugal was estimated to increase by over 12% in 2017, making total online sales worth €4.73 billion at the end of the year.

Card penetration is quite high in Portugal, but the most popular payment method is MultiBanco, which represented almost 86% of total sales in 2016 (29% in terms of annual monetary value). This is a post-pay option where a reference is generated at the checkout and then paid via an ATM with a debit card or via online banking.

 

GDP:
US $ 204.6 billion

Population:
10.32 million

Popular payment methods in Portugal:
•   Multibanco
•   Visa
•   Mastercard


Russia

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Ecommerce in Russia was worth €7.2 billion in the first half of 2017, an increase of 22% year-on-year.

Russia is a prime example of a major market in which credit cards are not dominant. In fact, cards represent only a small share of the online transactions. Instead, the most popular local payment methods are cash on delivery, online banking and ewallets, including:

  • Yandex.Money, the most popular digital wallet with top-up options including prepaid scratch cards, plastic cards, online banking, and cash.

  • QIWI Wallet is a digital wallet that can be topped up at one of 150,000+ payment terminals, as well as with credit/debit cards, on a phone. Sberbank is the biggest bank with 40 million users. As debit cards are by far preferred, online banking is the best solution to approach these shoppers.
     
  • Sberbank is the biggest bank with 40 million users. As debit cards are by far preferred, online banking is the best solution to approach these shoppers.

In Russia, payments through ATMs have been very popular for a long while, and the increasing sophistication of the terminals has resulted in a more seamless payments environment that now includes automatic top-ups and recurring payments.

 

GDP:
US $ 1.283 trillion

Population:
144.3 million

Adyen tip:
No local entity is required for processing non-card payments and it’s easy to access the majority of payment options in Russia. Adyen supports the biggest wallets and online banks, as well as several cash options. In order to process cards locally, you will need a local entity and local bank account. We support recurring payments using QIWI Wallet.

Popular payment methods in Russia:
•   Visa
•   QIWI
•   Yandex.Money
•   PayPal


Spain

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In 2017, the Spanish B2C ecommerce turnover grew by 8% to €28 billion. Of the total online population, 26.1 million bought something online in 2015 and the average spend was €1,089.

Cash is still the most popular method of payment in Spain, and the number of ATMs per million inhabitants is among the highest in Europe. Cards are also popular, with over 85% of the population carrying at least one debit or credit card. All cards are co-branded with Visa or Mastercard. Prepaid virtual cards for online purchases are also growing in popularity while it's still early days for alternative payment methods like paying in installments.

Although all the cards issued in Spain are compatible with 3D Secure, using it for all transactions can lower your conversion rates by up to 20%. For this reason, more businesses are using dynamic rules to trigger 3D Secure only when necessary. But the limitations of legacy processing systems can make this challenging.

 

GDP:
US $ 1.232 trillion

Population:
46.56 million

Adyen tip:
For optimal authorization rates, we recommend processing via a local acquirer (Adyen can provide local domestic acquiring in the market).

Dynamic 3D Secure (part of Adyen’s risk system RevenueProtect) will help you balance security and conversion for your Spanish shoppers.

Popular payment methods in Spain:
•   Visa
•   Mastercard
•   PayPal
•   American Express


Sweden

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The largest country in the Nordics, ecommerce in Sweden was worth €11.5 billion in 2017, a 9% increase year on year. The total in the Nordics in 2016 was €21.9 billion.

While cards remain the most popular way to pay online, Sweden is at the forefront of open invoice payments (supported by Klarna). This payment method is expanding internationally and is now the second most popular method after cards, and the most popular in retail. Online banking through major banks such as Handelsbanken, SEB and Nordea, is the third most popular payment method.

This can be done either via online banking payment services or via the popular direct bank transfer app Swish. Apple Pay was recently released in Sweden together with Denmark and Finland. Some Swedish issuers demand 3D Secure for all card transactions, or that the shopper makes ecommerce purchases within a limited time period.

 

GDP:
US $ 511 billion

Population:
46.56 million

Adyen tip:
Adyen offers full support for open invoice payment methods. This applies to retail, rather than digital goods. Dynamic 3D Secure (part of Adyen’s risk system RevenueProtect) lets you control when to apply 3D Secure. This is particularly useful for cards issued by banks that demand 3D Secure.

Popular payment methods in Sweden:
•   Mastercard
•   Visa
•   Klarna
•   Online Banking
•   PayPal


United Kingdom

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The UK is one of the leading economies in the western world. While the fallout from Brexit is still unclear, it has already had an impact on ecommerce. A weaker pound has made the UK attractive to international shoppers, and British shoppers are less likely to shop from overseas.

UK shoppers are world leaders in terms of mobile shopping and debit cards are popular, with the average shopper holding between 2-3 cards per person. Cards account for approximately 90% of all online payments, PayPal is another popular option, and online banking is virtually non-existent.

 

GDP:
US $ 2.619 trillion

Population:
65.64 million

Adyen tip:
Currently the UK is the only European country where Address Verification Service (AVS) is supported. And there is strong issuer support for 3D Secure. As a result, it's one of the few countries where enabling 3D Secure actually improves overall conversion. This is thanks to Risk Based Authentication (RBA) where the issuing bank chooses to forgo the full authentication process if they deem the transaction to be low risk. Visa and Mastercard Account Updater services are also available in the UK - so you can be sure your cards on file are always up-to-date.

Popular payment methods in the UK:
•   Visa
•   Mastercard
•   BACS Direct Debit
•   PayPal
•   American Express


Expanding across Europe?

Chat to a local payments expert

North America

North America (the US, Canada and Bermuda) is home to over 357 million people with a total GDP of 19.6 trillion USD. There are currently 223 million people shopping online, with 30 million more new users expected by 2021.

Canada

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Canada is the global leader in cross-border ecommerce for retail, with cross-border purchases accounting for 75% of all online transactions. Not surprisingly, most of these purchases are made from businesses located in the US.

Credit cards still remain the preferred payment method, followed by Interac and ewallets. Whilst Interac is a local direct debit scheme, it also supports online banking, which can also be used for online purchases.
 

GDP:
US $ 1.53 trillion

Population:
36.29 million

Adyen tip:
Not only are Canadian shoppers exceptionally open to cross-border ecommerce, particularly with US businesses, but no local entity is required, even when using Interac. This makes it an exceptionally easy market to enter. Adyen covers all payment methods and has a direct connection to a local acquirer.

Popular payment methods in Canada:
•   Visa
•   Mastercard
•   Interac Online
•   American Express


United States

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As the largest and best developed ecommerce market in the world, the US represents a huge opportunity.

It has a relatively straightforward payments environment, dominated by cards. It’s home to many major international card schemes (Visa, Mastercard, American Express, Discover, and Diners) and so full market penetration can be realized through card acquiring alone. Adyen offers local acquiring in the US.

GDP:
US $ 18.57 trillion

Population:
323.1 million

Adyen tip:
Apple Pay, Google Pay and Samsung Pay have been generating a lot of attention, particularly around mobile payments at the point of sale. Adyen offers a full service Apple Pay and Google Pay solution, including reconciliation, reporting and settlement services.

Popular payment methods in the US:
•   Visa
•   Mastercard
•   American Express
•   Ewallets
•   Discover


Doing business in North America?

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Latin America

LATAM is one of the top regions in the world for growth. So building out your operations now will put you in a good position to grab market share. LATAM is economically dominated by Brazil and Mexico.

Critical to success across LATAM is localization of both marketing and payment methods, which will improve both authorization rates and customer experience.


Brazil

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Brazil is the largest online market in Latin America, representing over 40% of the region’s ecommerce sales. In 2015 online retail sales reached $19 billion and Bain and Company expects the Brazilian ecommerce market to maintain a healthy annual growth of 11% right up until 2019.

Internet penetration has been growing steadily in recent years. 66% of the population is now online, up 5% from 2015, and Brazil has an average of almost two devices per person.

There are more than 200 million active cards issued in Brazil, with credit cards representing around 45% of the total. It's important to mention that debit cards have quite a low penetration in online sales in Brazil as 3D Secure is mandated for this type of transactions.

Adyen is pioneering in the market by processing debit cards without 3D Secure for selected businesses previously approved by the Schemes and the Issuers. It's also important to note that many of these cards are not enabled for cross-border payments (even though they're Visa or Mastercard branded). Boleto Bancário, a cash-based payment method, is also popular, especially with customers who do not have a bank account. Finally, another important thing to know is that up to 80% all commerce payments are made in installments.

[GUIDE]: Connect with 200 million shoppers in Brazil

GDP:
US $ 1.796 trillion

Population:
207.7 million

Adyen tip:
To offer payments in installments, you must be connected to local Brazilian acquirers. Many Brazilian cards are limited to domestic transactions only, which also require a connection to a local acquirer. Adyen has been acting as an acquirer in Brazil for Visa and Mastercard since 2016 and is adding American Express and ELO soon, delivering a solution with the same service levels and functionalities made available in other markets.

Popular payment methods in Brazil:
•   Visa
•   Mastercard
•   Boleto
•   Elo


Mexico

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Over the recent years, Mexico has attracted increased interest from global brands looking to expand in a country where online shopping is growing at an exponential rate. The country’s online retail revenues are forecasted to grow to US $6.7 billion in 2019, with online buyers increasing from 10.1 million to 21.1 million.

In terms of mobile, a recent study shows that Mexico is one of 22 countries leading the trend toward mobile commerce, and young adults made 88% of smartphone purchases. The country has one of the largest mobile markets in Latin America, with one-third of all residents using smartphones.

Installments (for cards) are also popular, and a local entity is required to support this type of payment.

[GUIDE]: Reach 122 million shoppers in Mexico

 

GDP:
US $ 1.046 trillion

Population:
127.5 million

Adyen tip:
In Mexico, many domestic cards are not enabled for cross-border purchases and use of a local acquirer is recommended to increase authorization rates. Adyen has local acquiring capabilities in Mexico, so you can process transactions with credit and debit cards issued by any bank.

Popular payment methods in Mexico:
•   Visa
•   Mastercard
•   Ewallets
•   American Express


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