dLocal Data Reveals Local Payment Methods Boost Merchant Transactions by Up to 55%

New research from dLocal suggests that adding secondary local payment methods in emerging markets drives incremental transaction volume rather than cannibalising existing channels. For fintech professionals, this shift from a checkout function to a growth lever challenges the assumption that multiple integrations yield diminishing returns, revealing a significant untapped customer base in high-growth regions.

What was announced

dLocal has launched "The Local Code," a research-driven playbook analysing payment trends across 17 markets in Africa, Asia, the Middle East, and Latin America. The findings, which draw on dLocal’s proprietary merchant transaction data and a 2026 retail consumer survey, indicate that local payment methods (LPMs) act as a primary growth engine for global enterprise merchants. Rather than splitting existing market share, each additional LPM—whether an instant payment system, eWallet, or Buy Now, Pay Later (BNPL) provider—tends to reach a unique segment of the customer base.

In Brazil, a merchant adding the Pix instant payment system saw total transaction volume rise by 55% within five months. Similarly, in Peru, the integration of the Yape wallet drove a 25% increase in total volume over six months, eventually overtaking cards as the merchant's primary payment method. In Colombia, the share of transactions via Nequi grew from 63% to 68% over half a year, with the data showing this growth came almost entirely from new spending rather than cardholders switching methods.

Beyond volume, the research highlights improvements in transaction value and operational efficiency. In Mexico, merchants using the Kueski BNPL service recorded a 6.1% increase in average order value compared to debit card transactions. Furthermore, processing costs dropped significantly in some regions, falling by 19% in Colombia and 30% in Peru following the adoption of local alternatives.

"Across the markets we work in, we keep seeing the same pattern: a second local payment method doesn’t eat into the first, it reaches customers the first one never touched. That matters beyond conversion. Millions of people across these markets have a phone and no credit history, which shouldn’t stop them buying things online. When merchants accept the payment methods people already use every day, that barrier goes away, and it becomes a real route into the digital economy for people who didn’t have access before."

Pedro Arnt, Chief Executive Officer at dLocal

The companies involved

dLocal is a specialised cross-border payment platform designed to bridge the gap between global enterprise merchants and the complex financial ecosystems of emerging markets. The company provides a single integrated solution that allows international businesses to accept and send payments using a vast array of local methods, including bank transfers, eWallets, and cash-based systems, without requiring multiple local entities or separate integrations for each territory.

Operating across diverse geographies including Latin America, Africa, and Asia, dLocal has established itself as a key infrastructure provider for multinational corporations looking to scale in high-growth regions. The company’s focus on a single API and platform aims to simplify the technical and regulatory hurdles associated with fragmented payment landscapes. With 66 previous reports on FF News, dLocal remains a frequently cited player in the cross-border fintech space, particularly regarding its role in facilitating digital commerce for underbanked populations and its partnerships with major global brands seeking to localise their financial operations.

What FF News has reported before

FF News has tracked dLocal’s expansion and its strategic focus on market localisation through several recent developments. In October 2026, the company announced a significant move into the remittance space, where dLocal and Western Union Expand Partnership to Launch Remittance Payouts in Africa. This followed a high-profile collaboration to localise professional services payments, as dLocal and LinkedIn Partner to Enable Local Currency Payments Across Latin America.

The firm’s research-led approach was also evident in a September report which found that 71% of Emerging Market Shoppers Abandon Carts Without Local Payment Methods. Additionally, the platform has sought to bolster its underlying technology, recently revealed when Oscilar and dLocal Partner to Scale Cross-Border Payments Compliance with Agentic AI.

What this means

This data challenges the "less is more" philosophy often applied to checkout optimisation in Western markets. In emerging economies, the friction of a crowded checkout is clearly outweighed by the risk of excluding entire demographics who rely on specific wallets or instant payment rails. The significant drop in processing costs also puts pressure on traditional card networks, which are increasingly viewed as a premium, rather than default, rail in these regions. The industry must now ask whether the dominance of global card schemes is permanently receding in favour of fragmented, state-backed, or telco-led payment ecosystems that offer better margins for merchants and higher accessibility for consumers.