Cross-Border Payments Bundle Local Rails to Tackle Market Fragmentation

Cross-border payments pose challenges when companies expand into new markets and payment methods vary from country to country. Payment bundling aims to simplify this by grouping payment methods with similar technical characteristics or business requirements. This approach allows shared integration patterns to be reused, reducing the engineering effort required to add new payment methods or enter new markets.

EBANX, a payment services provider, created payment bundles that group over 200 supported payment methods into four families based on technical architecture and strategic purpose. These bundles enable merchants to adapt existing connections to various payment methods, rather than starting from scratch for each one. For instance, recurring payment systems like UPI AutoPay in India and Pix Automático in Brazil can be integrated using these bundles, allowing subscription merchants to collect recurring payments regardless of the specific payment ecosystem in each country.

The bundle model standardizes the merchant's integration, while local payment systems retain their unique operating rules. EBANX estimates that merchants connected to a bundle can reuse up to 90% of the implementation effort when expanding into another supported country. Payment bundling is crucial for providing a seamless customer experience, as it allows companies to consider payment methods within the broader purchasing journey, rather than treating them as isolated transaction components.