What makes online cross-border payments so complicated?


  • Merchants must sign contracts for local payment methods
  • Merchants need a bank account for each market
  • Each market has local preferences and regulations


Digitalization is breaking down borders for merchants who want to reach an international customer base and for shoppers who want better deals. But when it comes to accepting payments and issuing refunds/payouts, things can get complicated.

Optimistic merchants with their sites set on international growth are often aware of the work involved in setting up the payments process for each country. Each market has different needs cenetred around consumer preferences and local regulation.

In order to process cross-border card payments, a merchant has to connect with local acquirers, local payment methods, domestic schemes, as well as organize licences and merchants accounts in each country. With PSD2's strong customer authentication (SCA) requirements it's even more complex.

For the PSPs who have to please their merchant customers by solving those issues, supporting cross-border sales can be a real challenge, to say the least.

FAQ: Cross-border payments and Open Banking


Why are online cross-border purchases increasing in the EU?

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What makes online cross-border payments so complicated?

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What are Open Banking payments?

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How does an Open Banking payment flow work, in general?

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Do European banks have to facilitate Open Banking payments?

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How does SCA work with Open Banking payments?

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How do Open Banking payments work across borders?

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How can cross-border expansion be simplified for merchants?

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Are Open Banking payments popular with consumers?

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Why do consumers like Open Banking payments?

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How can Open Banking payments speed up cross-border settlement?

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How do cross-border Open Banking refunds work?

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How can you choose the right Open Banking payments provider?

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