Expanding into international markets presents exciting growth opportunities but also new payment, operational and regulatory challenges that businesses need to understand before they take the leap.
At the PaymentsEd Annual Forum in Boston on July 28, Fran Jones, Director of Strategic Payments & Operations at Digistore24, and Joe Emig, CRO of AltoPay, shared lessons with payment and fraud industry professionals on their successes, challenges, and lessons learned in navigating global expansion successfully.
Here are five common mistakes businesses should avoid when entering new markets:
Mistake #1: Adding More Payment Providers
Payments and finance teams manage a wide range of tasks from taxes, bank accounts, chargebacks, reporting, and inventory management. Performing these tasks for all different merchant accounts can be duplicative, time-consuming, and require extra resources.
“Many businesses may assume that adding more payment providers helps them enter a new market more quickly, but the reality is that every additional provider introduces more complexity,” said Fran Jones, Director of Strategic Payments & Operations at Digistore24. “Businesses can still serve many markets with few payment service providers.”
Before adding more payment providers, evaluate how consolidating payment providers can improve payment workflows.
Mistake #2: Assuming Each Region Can Be Managed The Same
Taking a one-size-fits-all approach to managing business expansion on a global scale can create challenges and slow the growth process. International expansion has four major considerations:
- Local Entity: Is a local entity required?
- Language: Localize the customer ordering and checkout experience; Do not assume everything operates in English or USD
- Currency: Show products in the local currency symbol/name; Consider if VAT/GST is included or added
- Speed: Factor in server-side load time vs. conversion rates
“Before expanding into a new country, businesses need to ask the right questions to determine if it makes sense to create local entities, where operations should be located, and if they have infrastructure in place to handle tax and reporting requirements in that area,” said Jones.
Mistake #3: Ignoring Local Payment Methods
While credit card payments dominate in some countries, alternative payment methods (APMs) are the majority market share across international markets. Being aware of preferred payment methods in each specific region can build confidence and loyalty with customers directly at the point of purchase, ultimately improving conversion rates and customer satisfaction.
“Data from Worldpay Global Payments Report 2026 shows that digital wallets ranked highest at 56% of all global ecommerce payment methods, while credit card payments make up 20%,” Jones said. “Payment method preferences vary by region, so understanding how customers prefer to pay in each market is critical to success.”
Mistake #4: Overlooking The Complexities Of Cross-Border Payments
Cross-border payments involve more than currency conversion. Businesses should be prepared for foreign exchange costs, tax implications, settlement timelines, and other differences that could impact how quickly and effectively payments are processed.
“There are important nuances in how cross-border payments are settled and reported that businesses can’t afford to overlook,” Jones said. “For example, something like foreign exchange (FX) costs can be a factor, with currency conversion typically adding 1-3% of the transaction amount.”
Mistake #5: Not Complying With Local Laws And Card Scheme Rules
Compliance requirements can vary significantly depending on location. Monitoring worldwide compliance is essential in growing a business internationally. For example, compared to the U.S., the EU is heavily regulated when it comes to payments. Understanding local laws and card scheme rules before entering a new market helps reduce compliance risk.
“Expanding from the U.S. to Europe can be challenging because of the different regulations and compliance requirements,” said Jones. “Our Merchant of Record model helps businesses remove operational obstacles so they can sell compliantly as they scale.”
Expanding business into new markets can be both exciting and profitable as long as it’s done with these best practices in mind.
Digistore24’s new EU Expansion capabilities help vendors and affiliates sell digital products and eligible physical products across high-growth European markets faster and with less friction.
