Entering new markets can be an exciting opportunity for businesses, but one of the most critical factors that often gets overlooked is choosing the right banks and payment providers. It is not just about accepting transactions—cash flow is the backbone of your entire operation. The banking relationships you establish, the costs involved, and the availability of financial services in the target market can either support your expansion or completely derail it.
Before spending on marketing to attract new customers, businesses must evaluate these factors in detail. It’s not enough to assume that what worked in one region will work in another. Different countries have different banking systems, payment regulations, and customer payment preferences. Without understanding these, even the best marketing campaign can fall flat if customers can’t easily pay for your products or services.
Banks and payment providers affect your cash flow, operational costs, and even your ability to scale. A reliable payment partner ensures that your funds are processed efficiently, fees remain manageable, and any technical or compliance issues are quickly resolved. On the other hand, a poor payment setup can lead to delays, unexpected fees, blocked funds, and even terminated bank accounts—all of which can cripple your business when entering a new market.
Banking relationships often come with hidden complexities. Local banks might have strict compliance requirements, unique processing fees, or even limited service coverage based on licensing restrictions. In some regions, only local entities are eligible to work with banks or payment processors, making it necessary to establish a physical presence—a costly and time-consuming process.
Case Study - PSP Angels
One of our clients was a large online business which had great success in the European market. They only offered card payments, but their providers were reliable, and the payment success rate was well over 90%.
Realising the opportunities far beyond Europe, the group focused their attention on expansion into the booming Latin American market. They launched a pilot program targeting a smaller country which they randomly picked off the map (Paraguay), going with a modest marketing budget to test the waters. The goal was to quickly find a local LATAM payment partner who accepted major cards, covered all countries, and kept similar success rates and fees.
The company was completely unaware of the fact, that the Latin American payment and banking landscape differed greatly from Europe. Processing options and potential fees vary largely country by country, and there was a much lower success rate on card payments. Less than 7% of Paraguayans owned a credit card in 2017, and more than 90% of businesses still used cash, while digital payment was still in its infancy.
The client realised that they needed to put a lot more planning into this project. New payment methods and mainly local cash meant that an increased amount of due diligence, testing, training, new fraud protection rules and revised pricing were needed. Many other operational, technical, and financial aspects also needed to be reconsidered. Eventually, we presented various payment processing options and potential fees throughout LATAM, country by country, considering all aspects of the operations and integration, but this turned out to be a larger mission than what was initially planned. It was fortunate that the client didn’t spend the marketing budget first to test the waters, and then look for payment and banking options, as we have seen happening many times before.
Online businesses need to adapt and understand that the world of payment methods is diverse and ever-evolving, with each geographic location showcasing its unique preferences and practices.
From traditional cash transactions to cutting-edge digital wallets, the way people pay for goods and services varies significantly across different regions. Understanding the popular payment methods in each part of the world provides valuable insights into the global landscape of financial transactions.
Today one of the major determining factors for a business entering new markets is the payment providers. The banking relationships, costs and local availability of certain financial institutions can make or break any project. These considerations should be carefully evaluated before any marketing budget is spent on acquiring new customers from a new area.
Alternative Payment Methods
The biggest challenge online businesses face is recognising that payment methods vary widely across the world and are constantly changing. What works in one country may not work in another. Every region has its own preferred ways of paying, shaped by local customs, technology, and banking systems. In some areas, people still rely heavily on cash, while in others, digital wallets and instant payments are the norm.
To succeed globally, businesses must understand these local payment preferences. Knowing how customers prefer to pay in each market helps businesses choose the right payment options, avoid failed transactions, and improve customer satisfaction. Ignoring this can mean losing sales, even if everything else—product, pricing, and marketing—is perfectly planned. In today’s fast-changing payment landscape, staying ahead means keeping up with local payment trends and adapting to customer expectations.
Risks You Can’t Ignore
Choosing the right payment methods is only one part of the challenge. Mistakes are easy to make when dealing with money and international transfers, and hidden risks can destabilise your entire operation.
Let’s explore the less discussed but most common pitfalls:
1. Trusting the Wrong Payment Partner
Finding a reliable payment partner abroad requires thorough due diligence, legal reviews, and continuous monitoring—not just signing a contract. Emerging markets tend to have looser regulations, making it particularly challenging to understand the local requirements under which financial institutions operate. This includes how funds will be managed and the risks involved. Even after months of vetting, there’s no guarantee that your chosen provider won’t face operational failures or sudden regulatory scrutiny, leaving your funds trapped.
2. International Fund Transfers and Capital Controls
Moving money internationally can become a financial and operational nightmare. Capital controls in certain countries may restrict outbound transfers, while sudden sanctions can freeze funds overnight. These rules change frequently, creating a legal maze that your team must continuously monitor. Missing even one update could paralyse your entire operation.
3. Risky Payment Methods Backfiring
Adding new payment methods might seem like a logical growth strategy, but it can backfire if not managed properly. Accepting cryptocurrencies or high-risk payment channels like gift cards can put your entire operation at greater risk from a banking perspective. iGaming is already considered high-risk, but adding questionable payment methods can easily push your business past the tolerance threshold banks are willing to accept. This could lead to frozen accounts or even termination of banking relationships.
4. Negotiating Terms and Conditions in a Different Environment
Sourcing and accepting a local bank or payment provider is one thing, but negotiating terms and conditions in a different language can be highly challenging without a local team. Local providers may assume that foreign businesses won’t notice unfavourable terms, so having a trusted local expert handle negotiations is essential. Only local knowledge understands how far negotiations can be pushed and whether there’s room for better terms.
5. Long Payout Terms That Can Kill Cash Flow
The banking industry’s complex interconnectivity often causes delays in payments. Certain correspondent banks may block or reroute funds due to the high-risk nature of iGaming transactions, resulting in costly delays. Cash flow problems are the number one reason businesses fail, making timely settlements essential to avoid missed payrolls or supplier payments.
6. Different Legal Environments and Business Culture Habits
Operating under different legal environments is challenging and often requires costly local lawyers. However, navigating different business cultures can be just as difficult. Regional customs, cultural norms, and even religious considerations can create additional obstacles, even when a business is legally compliant. For example, sending an executive to meet local banking representatives for an informal dinner helped one of our clients secure much better terms. The small investment saved them hundreds of thousands in the long run.
7. Having a Local Entity
Many banks and payment providers only work with local entities due to licensing restrictions. Setting up and running a local entity comes with its own set of challenges, including the need for a physical office and local employees. There’s also the risk of inexperienced local administrators missing critical submission deadlines, causing compliance issues and resulting in penalties for your entire operation. In some cases, it may be more cost-effective to engage an international provider with a broader operational scope, even though it means paying higher processing or banking fees.
8. Political and Economic Instability
Political and economic instability can disrupt your entire payment strategy. Currency devaluations triggered by political unrest can wipe out expected profits. Without a hedging strategy, currency fluctuations can cause significant losses when converting funds back into your home currency.
9. Currency Issues
Emerging markets often have specific currency pairs, creating significant burdens for international money flows. Finding partners who can handle both payment processing and currency exchange at acceptable rates can consume substantial time, costs, and work hours.
10. Unpredictable Consumer Behaviour
Emerging markets are unpredictable, and consumer behaviour can create unexpected challenges. For example, offering the currently very fashionable buy-now-pay-later services in regions with high financial instability could leave you with unpaid invoices and unrecoverable losses. Even small miscalculations can cause serious financial damage in these volatile markets.
Why You Need a Payment and Banking Consultant
These risks are not hypothetical—they are real, unavoidable threats that could cripple your business. Payment and banking strategies for emerging iGaming markets are far too complex to handle without expert guidance.
Setting up a comprehensive banking and payment strategy is absolutely vital—not only to manage today’s challenges but also to prepare for tomorrow’s changes. Emerging markets evolve rapidly, and you must stay ahead of the competition while remaining aligned with regulatory requirements, payment provider standards, and local customs.
Without the right expertise, your business faces enormous financial risks, potential losses, and operational chaos. Don’t let hidden dangers turn your market expansion into a costly failure.
Explore these and other topics at Eventus International’s upcoming events: https://www.eventus-international.com/
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