A Local Payment Method (LPM) is a payment option that is specific to a particular country or region, reflecting the unique consumer habits, banking infrastructure, and regulations of that market. Unlike globally recognized credit cards, LPMs are tailored to local preferences and often dominate how people in those regions prefer to pay. Examples include iDEAL in the Netherlands (bank transfer-based), M-Pesa in Africa (sending, receiving, and paying with your mobile phone), Alipay and WeChat Pay in China (digital wallets), and UPI in India (payments using a smartphone app).
LPMs are especially important for businesses expanding internationally because they allow merchants to offer payment experiences that match customer expectations in each market. Accepting LPMs can significantly improve conversion rates, build trust, and increase accessibility for consumers who may not have access to international card networks. By integrating local payment methods, companies can reduce friction at checkout, support financial inclusion, and better compete in global e-commerce.
For businesses selling internationally, accepting LPMs is critical to success. In many regions, the majority of consumers do not use — or even have access to — traditional credit cards. By offering trusted, familiar payment methods, merchants can:
In short, LPMs matter because they bridge the gap between global merchants and local consumers, turning interest into completed sales.
A local payment method (LPM) is a payment option specific to a certain country or region and often reflects local consumer preferences, such as iDEAL in the Netherlands. In contrast, an alternative payment method (APM) is a broader term that refers to any payment option outside of traditional credit and debit cards, including digital wallets (PayPal, Apple Pay), bank transfers, or Buy Now, Pay Later services. Put simply, all LPMs are APMs, but not all APMs are LPMs: LPMs are geographically tied and essential for success in local markets, while APMs represent the wider category of non-card payments, whether global or local.