One of the most underestimated aspects of international ecommerce expansion is payment methods. While many brands focus on marketing or logistics, the truth is that if you don’t adapt to how people pay in each market, you’ll lose sales.
In Latin America (LATAM), Cash on Delivery (COD) is king. In the United States, prepaid methods like credit cards, PayPal, and digital wallets dominate. Understanding these differences — and adapting your ecommerce strategy — is the key to success.
The Role of Payment Preferences in Ecommerce
Payment is not just a transaction; it’s about trust and accessibility. Customers will only buy if they feel safe and confident with the options you provide. Offering the wrong payment methods can reduce your conversion rate by more than 50%.
Why COD Works in LATAM
- Low Credit Card Penetration
- Trust Issues
- Cultural Norms
Many LATAM consumers don’t have access to credit cards or prefer not to use them online.
Shoppers are cautious about fraud. Paying only after receiving the product builds confidence.
COD has become part of the ecommerce culture in countries like Mexico, Colombia, and Peru.
For brands, offering COD can significantly increase conversion rates and customer loyalty in LATAM markets.
Why Prepaid Dominates in the USA
- High Digital Wallet Adoption
- Efficient Fulfillment
- Consumer Behavior
Credit cards, Apple Pay, and PayPal are widely used.
Prepaid reduces delivery failures and logistics costs, making it more efficient for retailers.
US shoppers are used to paying upfront, which shortens the purchase process.
Prepaid ensures faster checkout, fewer returns, and smoother cash flow for ecommerce businesses in the USA.
The Risk of Ignoring Payment Differences
Brands that enter LATAM without offering COD quickly realize abandoned carts pile up. Similarly, businesses entering the US with COD-only setups face higher delivery costs and lower efficiency.
In short: payment strategy can make or break your ecommerce expansion.
How Kiki Latam Helps You Adapt
At Kiki Latam, we understand the power of payment methods. Our solutions help ecommerce brands:
- Integrate Cash on Delivery in LATAM for higher conversions.
- Manage prepaid operations efficiently in the USA.
- Combine logistics + payment strategy into one seamless system.
- Stay compliant with Merchant of Record (MoR) services.
Whether you’re scaling in LATAM or the USA, Kiki Latam ensures you’re offering the right payment method for the right market.
Adapting your payment strategy isn’t optional — it’s the difference between thriving and failing in global ecommerce. COD works best in LATAM, prepaid dominates in the USA, and brands that master both will scale faster.
👉 Ready to optimize your ecommerce payments? Talk to Kiki Latam and let us guide your expansion without borders.