Local Payment Preferences Signal Growing Digital Maturity

New data from payments platform dLocal reveals a clear trend: African consumers are prioritizing trust and convenience over price when shopping online.

A recent survey found that 97% of Nigerian shoppers would be more likely to purchase from international brands if local payment methods were offered—the highest figure among seven emerging markets surveyed. This preference extends to other countries like Brazil (96%) where digital payment adoption is already advanced.

The findings highlight a growing disconnect between consumer demand and retail supply, with many global brands yet to fully integrate African payment rails.

Security Concerns Drive Purchase Decisions

Beyond payment preferences, the survey indicates that trust and security are paramount for African shoppers. In Nigeria, where online scams affect 84% of adults annually, data protection now rivals cost as a key purchase driver. This emphasis on security reflects a broader trend across the continent.

Mobile Money Dominance Faces E-Commerce Challenge

Africa remains the world’s largest mobile money market, processing $1.4 trillion in transactions last year—a 26% increase from 2024. While this infrastructure supports vast person-to-person transfers, it hasn’t fully translated to seamless cross-border e-commerce.

The average cost of sending $200 within sub-Saharan Africa remains high at 7.9%, exceeding the UN target of 3%. This inefficiency underscores the need for payment solutions tailored to international trade.

Opportunities for Early Movers

According to dLocal’s head of commercial partnerships, Horacio Raviolo, “International brands that prioritize local payment methods will gain a competitive advantage as these markets mature.” The window for differentiation is closing as consumer expectations rise across the continent.