Almost All Cross-Border Shoppers Want to Pay With Local Currency

Global expansion for eCommerce merchants, while offering vast opportunity, remains a complex arena where payment failures and consumer preferences can quickly derail international sales, according to a new report.

The “Payments Optimization: Powering Global eCommerce Growth” report, part of the Payments Optimization Tracker Series produced by PYMNTS Intelligence with Worldpay, underscores that despite widespread digital adoption, cross-border payments continue to pose substantial challenges for merchants.

These frictions can impede international sales, even as global eCommerce is projected for substantial growth through 2030, exceeding $10 trillion in value. The report highlights that not all merchants are adequately prioritizing shopper convenience in international transactions, yet optimizing these digital payment experiences is crucial for maximizing global sales and meeting consumers’ evolving expectations.

The study details a landscape where cross-border transactions frequently prove more challenging for retailers than domestic ones. Key obstacles include consumer concerns over long delivery times, fear of fraud, difficulties with returns, and unexpected high transaction fees, all of which negatively impact conversion rates.

The research reveals that 72% of merchants experience higher rates of failed payments in cross-border transactions, leading to customer frustration and abandonment, with 55% of customers giving up if multiple attempts are needed.

The report emphasizes the “all payment is local” imperative, noting that nearly all cross-border shoppers — 99% — expect to pay using their preferred, customary methods, and 94% in local currencies, highlighting the necessity for merchants to replicate a local shopping experience with speed, choice, security, convenience and clear communication.

Key data points from the report include:

Digital payments are rapidly becoming the cornerstone of global eCommerce, projected to account for 79% of global eCommerce value by 2030, an increase from 66% in 2024 and just 34% in 2014. This surge is driven by the mainstream adoption of digital wallets, account-to-account (A2A) transfers, and buy now, pay later (BNPL) solutions, which were once considered “alternative.”

Ninety-nine percent of cross-border shoppers expect to pay with their preferred, customary methods, emphasizing the critical need for merchants to offer localized payment options beyond just local currency. This preference directly influences consumer choice, with 57% of shoppers selecting retailers based on the payment methods they accept.

One-click checkout is a powerful tool for optimizing online transactions, with 84% of shoppers considering it an important factor when deciding where to shop. Such streamlined experiences can also boost authorization rates by more than 10% compared to manual card entry.

Beyond these core findings, the report explores other aspects of payments optimization. It stresses that optimization is not a one-time fix but rather an ongoing process that demands continuous attention to digital payment acceptance, transparent communication, and efficient delivery and return mechanisms, including local warehouse solutions. The integration of advanced fraud solutions, often powered by artificial intelligence and machine learning, is also highlighted as essential for securing transactions and building trust.

The report suggests that leveraging third-party payment solution providers can simplify the complex optimization journey for merchants seeking to refine their payment strategies for each specific market.

Ultimately, the study concludes that for businesses aiming to expand globally, payments are no longer merely a commodity but a critical competitive differentiator, empowering firms to streamline the checkout process, reduce friction, foster customer loyalty, and efficiently penetrate new markets to capture burgeoning global demand.