Smart Routing and Localisation: Key Considerations for 2026

The global digital economy is no longer just "expanding"; it is fragmenting into highly specific, localised clusters. For merchants in high-velocity sectors, particularly those handling iGaming payments, the "one-size-fits-all" approach to transaction processing is becoming less effective as markets, regulations and customer expectations continue to diverge. 

The margin for error in payment performance is tightening. High churn rates, evolving regulatory landscapes, and the rise of Alternative Payment Methods (APMs) mean that two capabilities are increasingly discussed together: smart routing and localisation. While they address different aspects of the payment journey, both can play a role helping merchants improve resilience, relevance and performance across regions. 

Global Payment Preferences Are Fragmented and Localised

Consumer behaviour varies widely across regions, and a standardised payment strategy is increasingly less effective. In some markets, digital wallets prevail; in others, bank-based methods or instant payment schemes are preferred. For example, in the Netherlands, local bank transfer methods like iDEAL remain widely used online checkout. These differences help explain why localisation - tailoring payment offerings to match regional behaviours - is becoming highly relevant for merchants operating across borders. 

In ecommerce more broadly, mobile devices account for a growing share of online sales, with some estimates showing up to 60% of global ecommerce purchases via mobile. 

The global ecommerce market is projected to reach $11.4 trillion by 2029, according to Juniper Research. This significant growth is increasingly fueled by the adoption of alternative payment methods, with a notable rise in the use of digital wallets and various local APMs (Alternative Payment Methods).

These disparities help explain why localisation, tailoring payment offerings to match regional behaviours, is becoming increasingly important for many merchants. When a merchant presents familiar payment options at checkout, customers feel a greater sense of trust, potentially leading to higher conversion and fewer abandoned carts.

Smart Routing: The Engine Behind Better Payment Outcomes

Even with excellent localisation, not all payment attempts succeed. 

Traditional routing, which sends every transaction through a default processor, can potentially lead to suboptimal results in some cases. Smart routing uses real-time data, historical performance and contextual signals (such as geography, device type, currency or local acquirer availability) to help determine an appropriate path for each transaction.

For instance:

• Smart routing can help improve authorisation rates by dynamically selecting an acquirer or payment method based on performance indicators. 
• Payment orchestration platform can support transactions being rerouted if one provider becomes unavailable, which may improve resilience and continuity during peak periods. 

In sectors such as iGaming, where the speed and security of deposits and withdrawals are critical to the user experience, smart routing and orchestration can play a vital role. Players often expect deposits to be available promptly and withdrawal to be processed with minimal delay, making reliability and routing logic especially relevant. 

Localisation for iGaming and Other Verticals

In the iGaming sector, localisation is a significant factor that can influence both player acquisition and retention. Operators typically find that aligning their payment stack with the specific methods players use within their local markets helps to reduce friction during the deposit process. 

Regional preferences often differ widely, making a diverse global network essential for cross-border growth. For instance: 

• In Latin America, PIX, Brazil’s instant payment method, has gained significant adoption and in some surveys is reported as more popular than cash and even debit cards, in accordance with  a recent survey.
• European players may prefer bank-based methods like online banking or wallets integrated with local banks.

From open banking in Europe to digital wallets and local bank transfers in APAC and LATAM, providing contextually relevant choices is a key differentiator.

Technology That Supports Smart Routing and Localisation

Payment Orchestration

Payment orchestration platforms can unify multiple payment service providers, gateways and local methods into a single integration layer, which may simplify management for merchants. Orchestration platforms collect transaction data, monitor performance, and enable merchants to apply logic such as smart routing and localisation without maintaining dozens of point-to-point connections. 

Open Banking

Open banking is expected to play a role in the future of payments by enabling direct bank-to-bank transactions. This approach may improve both speed and security in some implementations, particularly in markets where bank transfer methods, supported by real-time rails, are widely adopted. Open banking can potentially support seamless authentication flows, reducing checkout friction and strengthening trust.

Security and Fraud Detection

As payment methods diversify, security and fraud detection systems must also evolve. Combining real-time analytics with behavioural monitoring may enable platforms to identify potentially fraudulent patterns more quickly and mitigate risk without unnecessarily degrading the user experience.

Crypto and Crypto Processing

Cryptocurrency and blockchain technology, including stablecoins and blockchain-based rails, continue gaining traction as alternative payment methods in some markets. While adoption varies significantly by region, and regulatory environment, crypto may offer faster settlement and potentially lower-cost cross-border transfers in certain cases, which can be attractive for some players and merchants in high-growth markets.

Strategic Benefits of Smart Routing and Localisation

Integrating smart routing and localisation into your payments stack offers the potential for benefits:

• Customers presented with familiar, locally trusted payment options are more likely to complete purchases.
• Smart routing helps merchants avoid failed transactions by dynamically selecting optimal paths, which can boost approval rates.
• Seamless checkout experiences, especially in iGaming and ecommerce, may contribute to reduced cart abandonment.
• Advanced fraud detection systems may help enhance trust and protect revenue while seeking to minimise impact on user experience.
• A flexible stack may facilitate expansion into new markets.

These benefits may be significant for merchants operating in competitive markets. Those who implement smart routing and localisation may gain advantages over competitors in offering smoother and more personalised payment journeys.

The Path to a Competitive Payments Stack

To remain competitive, merchants should consider implementing infrastructure that integrates smart routing with localisation. This involves the adoption of platforms capable of managing a wide array of payment options, including bank-based payments, digital wallets, open banking, or cryptocurrency, to help optimise approval rates and offer contextually appropriate choices to customers.

Smart routing and localisation are increasingly important components of a competitive payment strategy for many merchants. Merchants looking to expand internationally should evaluate partners that offer robust orchestration, dynamic routing logic, and localised payment coverage to help maintain their competitive edge.

Interested in learning more about smart routing and localisation? Contact our team to discuss how finera's payment orchestration platform may support your operations across markets, including iGaming, ecommerce, and beyond.

This article on payment methods is for informational and educational purposes only.

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