Payment methods

Localpayment provides a comprehensive suite of payment methods tailored to meet the diverse preferences of customers in emerging markets. By offering multiple localized payment options, merchants can enhance customer satisfaction and expand their reach in these regions. This section provides an overview of the available payment methods and their specific functionalities.

Bank Transfer

Allows customers to pay directly from their bank accounts, providing a secure and familiar payment experience.

Workflow

Customer Initiates Payment: Your customer selects the bank transfer option during checkout.
Payment Request: Your application sends a payment request to the Localpayment API, specifying the payment method, amount, currency, and other relevant details.
Provide Instructions: Localpayment generates payment instructions, including bank details and a unique reference number.
Customer Transfer: The customer uses their online banking platform or visits a bank branch to initiate the transfer.
Notification: Localpayment verifies the transfer and notifies you of the successful payment.

Key Capabilities

Wide reach: Accept payments from a broad customer base with access to bank accounts.
Security: Bank transfers are generally considered a secure payment method.

Cash Payments

Enables customers to complete online purchases by paying cash at designated physical locations, catering to those without bank accounts or who prefer cash transactions.

Workflow

Customer Initiates Payment: Your customer selects the bank transfer option during checkout.
Payment Request: Your application sends a payment request to the Localpayment API, specifying the payment method, amount, currency, and other relevant details.
Provide Instructions: Localpayment generates payment instructions, including unique reference and payment details.
Payment Execution: The customer visits a participating payment location (e.g., convenience store) and provides the voucher to complete the payment.
Notification: Once the payment is made, the merchant is notified, and the order is processed.

Key Capabilities

Accessibility: Reach customers who may not have bank accounts or credit cards.
Flexibility: Provides an alternative payment option for a wider audience.
Increased reach: Tap into new customer segments.

Credit/Debit Cards

Credit and debit cards are a convenient and widely used payment method, offering instant transaction processing. Accepts major credit and debit cards, providing a convenient payment method for customers.

Workflow

Customer Initiates Payment: The customer selects the card payment option at checkout.
Payment Request: Your application sends a payment request to the Localpayment API, specifying the payment method, amount, currency, card information and other relevant details.
Payment Processing: Localpayment processes the payment based on the chosen method, handling any necessary authorization or redirection. Additional security measures like 3D Secure may be prompted.
Authorization and Settlement: The payment is authorized, and funds are settled to the merchant's account.
Notification: Once the payment is made, the merchant is notified, and the order is processed.

Key Capabilities

Card Networks: Supports Visa, Mastercard, American Express, and local card schemes.
Speed and convenience: Transactions are processed quickly, providing a seamless customer experience.
Recurring payments: Support for subscription-based businesses.

Virtual Accounts

Virtual accounts offer a streamlined method for businesses to receive local ACH bank transfers, simplifying reconciliation by assigning unique accounts to specific merchants or end-users. This solution enables real-time collections in local currencies.

Workflow

Create Virtual Accounts: The merchant initiates the process by creating virtual accounts through Localpayment's platform. Each virtual account is uniquely generated to facilitate individual tracking.
Virtual Account Creation: Localpayment automatically generates a unique virtual account and sends the account details.
Assign to Customers: Each virtual account is assigned to a specific customer, ensuring that incoming payments can be accurately attributed to the correct source.
Customer Initiates ACH Transfer: Customers perform local ACH bank transfers, directing funds to their assigned virtual account numbers. This method ensures that payments are routed correctly without the need for additional identifiers.
Real-Time Reconciliation: Upon receipt, payments are automatically reconciled in real-time. Localpayment's system performs automatic matching of incoming funds to the designated virtual accounts, with immediate updates to transaction records.
Notification: Merchants receive instant notifications for successful payments. These alerts confirm transactions and provide key details for efficient financial management.

Key Capabilities

Automate payment reconciliation and reduce manual effort.
Enables real-time collection and processing of funds.
Supports transactions in local currencies, enhancing convenience for customers.

Alternative Payment Methods (APMs)

APMs encompass various non-traditional payment options, including digital wallets, bank transfers, and other region-specific methods. These methods cater to local preferences and can significantly enhance customer satisfaction and conversion rates.

Workflow

Customer Selects APM: Your customer chooses their preferred APM during checkout.
Redirection or Instructions: Depending on the APM, the customer may be redirected to a third-party platform to complete the payment or receive specific payment instructions.
Confirmation: Localpayment processes the payment and notifies you of the transaction status.

Key Capabilities

Local relevance: Offer payment methods that are popular and trusted in specific regions.
Increased accessibility: Reach customers who may not have access to traditional payment methods.
Competitive advantage: Provide a wider range of payment options to attract more customers.