Bank transfers: The trusted rails transforming payments in emerging markets

  Written bySofia Posada Head of APMs, dLocal

Global merchants expanding into emerging markets quickly learn that bank transfer isn’t a “backup” payment method. In many countries, it’s a digital default—trusted, widely used, and often preferred over cards.

Millions of consumers rely on bank transfers for everything from bill payments to eCommerce. In markets like Colombia and Indonesia, mobile banking is widespread while card access remains limited, making bank transfers a familiar, direct way to pay. Bank transfers also sit alongside newer account-to-account (A2A) rails and direct debit solutions, giving users more control and transparency.

What is a bank transfer?

A bank transfer is an electronic payment made directly from one bank account to another. In emerging markets, bank transfers are often used as a practical “money movement” rail for:

• paying online merchants
• settling bills
• sending person-to-person transfers
• funding other payment methods (like wallets) through account-based top-ups

Why are bank transfers critical for growth in emerging markets?

Bank transfers matter because they map to how people already manage money, especially in mobile-first environments.
In many emerging markets, the growth drivers are consistent:

• Trust and familiarity: users often prefer paying directly from their bank account
• Control and transparency: direct-from-account payments feel more predictable than cards
• Mobile-first banking habits: as banking access improves, more people pay straight from their accounts
• Inclusion: bank transfer flows can help bring first-time online buyers into digital commerce

And the adoption is already meaningful in key markets:

• Colombia: 34% of online purchases use bank transfers
• Indonesia: 26%
• South Africa: 22%
• Nigeria: 21%
   

A2A and real-time rails: the evolution of bank transfers

Across emerging markets, traditional bank transfers are evolving into account-to-account (A2A) and real-time payment systems. What once took hours—or required manual steps—now happens instantly, directly from a bank account, often triggered through a mobile app, alias, or QR code.

Infrastructure such as Pix, UPI, BI-FAST, SPEI, PesaLink, and PayShap has transformed bank transfers into fast, low-cost, always-on payment experiences. As a result, more eCommerce spend now moves straight from account, often skipping cards and even eWallets.

As adoption grows, A2A and real-time rails are becoming a foundation for everyday payments, subscriptions, and recurring use cases—positioning bank transfers as a core driver of digital commerce and financial inclusion.

The challenge: Cross-border bank transfers aren’t straightforward for merchants

Even when consumers want to pay via bank transfer, enabling that across markets can create friction for merchants because:

• Every market has its own rails and habits: bank transfer flows may happen through apps, ATMs, or QR systems.
• Confirmation expectations are high: users want immediate clarity that the payment is complete
• Different experiences by country: what feels “normal” in Colombia won’t match Indonesia or Nigeria

Supporting bank transfers is all about fitting the local flow so customers can confidently send money online and return to the checkout without doubt.

The approach: How merchants can make bank transfer payments feel local

Successful global businesses adapt to local systems and reduce friction where simplicity is expected. In practice, that means designing for what bank transfers are in each market:

• A trusted, direct pay flow (not a “manual workaround”)
• A familiar sequence (matching how users already move money)
• Clear confirmation (so the transaction feels final and safe)

How do bank transfers work at checkout? A step-by-step guide

While flows vary by country, the “logic” is consistent: select transfer → authenticate with a trusted banking channel → confirm.

Here’s a typical bank transfer checkout journey:

Colombia offers a clear example of bank transfer dominance in eCommerce. Through PSE, bank transfers lead online payments, with the rail handling 95% of transfer-based eCommerce transactions by connecting buyers directly to their banks for secure, instant payments.

Which industries benefit most from bank transfer payments?

Bank transfers tend to perform best where users care about certainty, trust, and direct settlement. In some markets, different verticals lean on different payment behavior—e.g., in South Africa, bank transfers are the go-to for SaaS, where subscriptions or invoices are the norm.

Common strong fits include:

Conclusion: A practical way to meet local payment expectations

Bank transfers are evolving. As banking access grows and real-time rails improve, more consumers choose direct-from-account payments over cards or wallets. The result is a method that offers control, trust, and a familiar flow—especially in mobile-first economies.
For merchants, priorities go beyond simply offering bank transfers. Supporting real-time confirmation, aligning refund and settlement flows with local expectations, and focusing on markets where high transfer adoption meets large eCommerce volumes are key to maximizing impact.