Local Payment Methods (LPMs)

While global card networks like Visa and Mastercard are ubiquitous, the world of payments is incredibly diverse. Increasingly, Local Payment Methods (LPMs) are becoming central to commerce, especially in regions like Asia, Africa, Europe and Latin America. These are payment methods preferred or dominant within a specific country or region, often leveraging local banking infrastructure, mobile technology, and catering to unique consumer habits and regulatory landscapes. Some popular local payment methods include UPI (in India), Blik (in Poland), PIX (in Brazil), Paynow (in Singapore), wallets (in South-East Asia), etc. With Tazapay, you can access all the local payment methods using a single integration.

Common Types of Local Payment Methods

Local Payment Methods encompass a wide range of technologies. Here are some key categories:

• QR Code Payments:
  • A customer can make a payment in one of three ways: scanning the QR code, upload the QR image or using the QR string
  • Examples: UPI QR Codes (India), Alipay/WeChat Pay QR Codes (China), PayNow QR (Singapore), PIX (Brazil), Promptpay (THB)
• Mobile Money:
  • Primarily prevalent in regions with high mobile phone penetration but lower banking access (like parts of Africa). It allows users to store, send, and receive money using their mobile phone number, often via basic SMS/USSD interfaces or simple apps.
  • How it works: Users deposit cash with agents to load their mobile money account, linked to their SIM card. They can then transfer funds P2P, pay bills, or pay merchants who accept mobile money.
  • Examples: M-Pesa (Kenya and other African nations), GCash (Philippines).
• Digital Wallets (eWallets): Applications (usually on smartphones) that store users' payment information (like cards or bank accounts) or hold a pre-loaded balance (stored value).
  • How it works: Users can pay merchants by selecting the wallet, often via QR code scanning, tapping (NFC), or online checkout integration. Wallets may facilitate payments using linked instruments (like UPI, cards) or their own stored balance. They often bundle other services like bill payments, ticketing, etc.
  • Examples: Alipay, WeChat Pay (China), GrabPay (Southeast Asia).
• Internet Banking (Direct Bank Transfers): Online payment methods where the user is redirected to their bank's internet banking portal to securely authorize a direct transfer.
  • How it works: At checkout, the user selects their bank, logs into their online banking, reviews the pre-filled payment details, and authorizes the transfer using their bank's security methods (like OTPs or transaction passwords).
  • Examples: iDEAL (Netherlands), Sofort/Klarna Pay Now (Germany/EU), Netbanking-based transfers (used for specific bill payments or larger amounts in India, complementing UPI/IMPS).