What is the biggest payment challenge merchants face today?
According to new data from SPAYZ.io, a global provider of advanced payment technologies for high‑risk merchants and cross‑border payment providers, nearly two-thirds (64%) of payment partners have identified the limited local payment methods and operational and technical failures as the biggest challenges facing merchants.
The inability to offer trusted local payment options is directly impacting conversion rates and customer satisfaction, especially in emerging markets. Equally concerning, 64% of merchants report operational and technical failures with their payment systems.
Payment conversion problems are another major pain point, affecting 57% of merchants, and directly reducing checkout conversion rates. Poor checkout experiences, declined transactions, and friction in the payment flow are contributing to abandoned carts and missed sales opportunities, particularly in mobile-first environments.
Meanwhile, 57% of merchants are burdened by high fees and complex tariffs from their current payment providers and PSPs. The lack of transparency in pricing models makes it difficult for businesses to forecast costs and manage margins, especially for those operating across multiple markets.
Currency and geographical restrictions on cross‑border payments are also a barrier for 43% of merchants. These limitations prevent businesses from expanding into new regions and effectively serving international customers, stifling growth in an increasingly borderless digital economy.
Finally, 21% of merchants face legal and regulatory barriers when working with payment providers. Navigating KYC/AML compliance and licensing requirements compliance requirements across jurisdictions adds complexity and risk, particularly for SMEs and startups without dedicated legal resources.
Innovations in payment technologies have created heightened expectations from customers. As our research shows, they want convenience and the ability to complete transactions with minimal disruption. For high-risk sectors like igaming and forex, where speed and trust are everything, even minor payment issues can cause users to drop off and never return.
— Tatiana Sokolova, Chief Marketing Officer at SPAYZ.io
SPAYZ.io helps merchants address these challenges by expanding access to local payment methods, optimising conversion, and supporting high‑risk sectors with tailored payment solutions.
Solution
The full findings from research are featured in SPAYZ.io’s latest whitepaper titled “Winning Payments in Challenging Industries”. Click here to download.
