Global Payment Trends: What’s Popular in Each Region?

Payment methods around the world have transformed, reflecting the rapid pace of innovation. From traditional cash and credit cards to digital wallets and open banking solutions, consumers now have more options than ever before. Understanding regional payment preferences is key for global merchants looking to enhance their customer experience and improve conversion rates. 

Top payment methods in Asia-Pacific  

The Asia-Pacific region is a leader in adopting innovative payment solutions, with digital wallets taking the top spot. 

China
China has largely moved away from cash and card payments, with mobile wallets like Alipay, WeChat Pay, and UnionPay dominating. These mobile payments have become a central part of Chinese daily life.

India
Cash remains popular in India for in-store purchases, but digital wallets are rapidly gaining traction. Apps like Paytm, PhonePe, and Google Pay have millions of users, especially post-COVID-19.

Australia
In Australia, debit cards and online payment services like PayPal and Google Pay are top choices. For in-store purchases, credit and debit cards make up over 70% of transactions.

Preferred payment methods in Europe

Europe has seen a rise in digital wallet usage, with significant adoption of account-to-account (A2A) payments enabled by open banking.

United Kingdom
In the UK, debit cards and direct debits are the most popular for online payments, with digital wallets and BNPL options also gaining traction. For in-store payments, debit cards account for nearly half of all transactions.

Germany
Digital wallets and BNPL are popular online payment options in Germany, with PayPal leading the pack. For in-store transactions, cash is still widely used, although it has been declining.

France
French consumers favor credit cards and digital wallets for online transactions, while debit and credit cards dominate in-store payments.

Payment trends in the Middle East & Africa

Credit cards and digital wallets are popular across the Middle East and Africa, though cash is still used widely in some areas.

Turkey
Credit cards are prevalent in Turkey, especially for online transactions. Digital wallets are also popular, with cash still used for in-store purchases.

Saudi Arabia
Credit cards are a common choice for online transactions, while mobile wallets like STC Pay are growing in popularity. The country is shifting towards cashless payments in line with national policy.

South Africa
Credit cards are popular for e-commerce, while bank transfers and digital wallets follow closely. For in-store purchases, debit and credit cards lead, supported by an increase in retailer financing options.

North America’s payment preferences

Digital wallets lead the way in North America for online payments, though credit and debit cards are still widely used.

United States
Debit and credit cards are preferred for online purchases, with BNPL options also growing in popularity. In-store, credit cards and mobile wallets dominate.

Canada
Credit cards are the primary payment method online, though digital wallets are gaining ground. BNPL is also on the rise, particularly among younger consumers.

Popular payment methods in Latin America

Latin America shows a strong preference for credit cards, with digital wallets and A2A payments gaining popularity, especially in Brazil.

Brazil
Credit cards dominate, with digital wallets and A2A options like PIX also gaining traction. In-store, credit and debit cards are widely used.

Mexico
Credit and debit cards are most popular online, while cash remains common in physical stores, though it is steadily declining.

Argentina
Credit and debit cards are popular online, with digital wallets growing rapidly, thanks to platforms like Mercado Libre.

The rise of open banking payments

Open banking, or pay-by-bank payments, has introduced a new way for consumers to make direct, secure payments from their bank accounts. Bypassing card networks, open banking enables faster transactions, lower fees, and enhanced security.

"Open banking has completely changed the game for digital payments by providing customers with an efficient, secure way to pay directly from their bank accounts,” says Lasma Kuhtarska, Co-founder, Chief Strategy Officer at Noda. “This shift is particularly exciting for businesses looking to offer their customers a smoother, more cost-effective payment experience across borders.”

As payment methods continue to evolve, businesses that adapt to these changes will find new opportunities for growth and enhanced customer satisfaction.