Emerging market merchants hit by payments fees and failed checkouts, study shows

By Puja Sharma

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. This is according to new data from SPAYZ.io, a global provider of advanced payment technologies, which uncovers the challenges merchants are currently facing in the payments space.

The inability to offer locally trusted 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. 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 providers. 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 are also a barrier for 43% of merchants. These limitations prevent businesses from expanding into new regions and serving international customers effectively, stifling growth in an increasingly borderless digital economy.

Tatiana Sokolova, Head of Marketing at SPAYZ.io, commented on the findings: “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.”

Finally, 21% of merchants face legal and regulatory barriers when working with payment providers. Navigating compliance requirements across jurisdictions adds complexity and risk, particularly for SMEs and startups without dedicated legal resources.

Beyond these headline numbers, the findings highlight a critical inflection point for the payments industry. The growth of digital commerce is accelerating, yet the infrastructure powering transactions has not kept pace with customer expectations. Merchants are increasingly caught between two pressures: the need to localise payment experiences to build trust, and the necessity to scale seamlessly across borders to remain competitive.

This gap is particularly stark in emerging markets, where mobile wallets, alternative payment methods, and even cash-based solutions often dominate consumer behavior. Failing to integrate these options risks alienating large segments of potential customers. Conversely, providers that can bridge the divide between local nuance and global reach are better positioned to unlock loyalty and sustainable revenue streams.

Another overlooked consequence of operational failures is reputational damage. In sectors where customer trust is fragile, repeated payment issues can erode long-term brand equity. Merchants today must not only optimise for conversions but also safeguard against technical breakdowns that undermine customer confidence.

Looking ahead, the report suggests that the payments ecosystem will need to pivot toward greater transparency, interoperability, and resilience. Dynamic pricing structures, embedded compliance tools, and AI-driven fraud prevention are likely to shape the next wave of innovation. For merchants, the priority will be to partner with providers that can deliver both reliability and adaptability in a landscape where customer loyalty hinges on frictionless transactions.