Remove complex payment logistics from the dropshipping equation

3 min. read

Broaden your dropshipping business operations with local payment options

The market size of the dropshipping industry reached USD$281.35 billion in 2023, and the industry’s market revenue is expected to grow at a CAGR (compound annual growth rate) of 26.1% from 2024 to 2030. With this in mind, it's important to look at the wider picture of where this growth will come from globally.

The opportunity in emerging economies and complex markets for international business is infinite. These regions are home to 85% of the global population, with nearly 90% of the world's under-30 demographic residing within them—the present and future spenders.

As the internet penetration rate in these regions continues to grow thanks to better public infrastructure and smartphone access, the more eCommerce becomes embedded in the purchasing behavior.

Local payment methods for better conversion rates

Brazil’s Pix for online retail purchases

eCommerce sales in Brazil comprise 11% of the region's GDP, with 88% of the population participating in digital retail.

Pix is Brazil's real-time payment system, enabling instant, 24/7 transactions through QR payment, mobile apps, and online. It's free for consumers and compatible with multiple banks and providers. As of December 2023, 87% of Brazilian adults use Pix, and 29% of all online transactions happen via Pix. Through dLocal, our dropshipping partners can connect Pix directly through the Central Bank of Brazil.

Mexico’s choice for online retail purchases

In Mexico, smartphones are the most commonly used device for online purchases, which aligns with the country's high internet and mobile usage rates. About 70% of adults in Mexico shop online, and eCommerce accounts for around 13% of all retail sales in the country.

Ensure your dropshipping company offers the two most popular payment methods — local credit cards represent 33% of Mexico's online transactions, followed by eWallets at 27%.

Philippines’ choice for online retail purchases

A very online country, Filipinos spend over nine hours a day using the internet on average, only behind fellow emerging markets Brazil and South Africa. The eCommerce sector saw a significant rise in sales since the onset of the pandemic, with an increase of 85% between pre-pandemic levels and 2022.

The clear-cut winner and non-negotiable payment alternative when expanding into the Philippines is eWallets, which comprise 33% of all digital transactions. Local super app GCash has over 80 million registered users.

India’s UPI for online retail purchases

India's eCommerce market is the world's fastest-growing. Sales revenue hit USD$56.7 billion in 2023, up from USD$30 billion in 2020. Don’t miss out on the Indian market in 2024.

With an unprecedented adoption rate, India's real-time payment system UPI is used for 35% of digital payments. In August 2023, just four years after its launch, it handled 10 billion transactions. By the end of 2023, the total number of transactions reached 117 billion—a 49% increase from 2022.

dLocal and dropshipping: What you need to know

Providing an unparalleled smooth payment experience for your customers, regardless of the size and frequency of the transaction, dLocal assists you to grow your business and gain customer satisfaction.

Our latest dropshipping partner has implemented multiple of the below solutions with dLocal, with their total payment volume (TPV) up 25% between November 2023 and February 2024.

Invoice collection: Generate payment links anytime, and send them straight to your customers, allowing them to pay in their preferred method and currency.

Instant FX: Receive the currency of your choice in real-time.

Defense suite: Manage fraud effectively and operate confidently knowing your funds are secure with dLocal’s real-time monitoring, chargeback management tools, dispute resolution services, and data analytics.

High-end support: Dropship merchants receive after-sales customer service, enabling quality service to all customers.

Start dropshipping to Africa, Asia, and Latin America

Remove the complexities of expanding into these regions with uncapped opportunities and reach billions of new consumers through a single integration. With the ability to accept local payment methods and facilitate cross-border fund settlement worldwide, start your journey with the ideal payment solution for global commerce.

Get in touch with our payment experts

We help global companies such as Amazon, Spotify, and Microsoft find new opportunities in high-growth markets. Let's think outside the box for tailor-made payment solutions for your business. Fill out this form, and we'll get back to you as soon as possible.

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