Designing B2B Payment Solutions for SMBs in Emerging Markets
Designing inclusive payment systems that meet the needs of small and medium-sized businesses (SMBs) in emerging markets is not just a growth opportunity for financial institutions and fintechs—it’s a fundamental component of economic resilience and financial inclusion.
While digital payments are expanding globally, over 90% of SMB transactions in some areas are still conducted in cash due to limited connectivity, trust in cash, and the absence of tailored digital infrastructure. For millions of SMBs in regions across Africa, Latin America, and parts of Asia, offline-ready and cash-compatible payment solutions are essential to business continuity.
For product teams aiming to support underserved businesses in low-connectivity regions, it’s critical to adopt a user-centered approach.
Let’s examine practical, proven UX strategies for creating impactful, resilient payment experiences in these markets.
Understanding the Offline Reality of Emerging Markets
Emerging markets are home to a vast number of SMBs that serve as the backbone of their economies, contributing over 50% of GDP and 70% of employment in low- and middle-income countries. Yet, most digital payment systems aren’t designed with these businesses in mind.
Limited internet access continues to pose significant challenges for financial inclusion, impacting approximately 28% of Sub-Saharan Africa and 68% of Latin America.
Despite these barriers, there remains a strong reliance on cash transactions, complicating efforts to integrate underserved populations into formal financial systems.
Recent insights from the 2024 Financial Inclusion Week emphasize that for financial inclusion to be effective, payment systems must harmonize offline capabilities with cash accessibility, creating a hybrid model that is both reliable and user-friendly
The Enduring Importance of Cash Payments
Cash remains the primary method of exchange in these regions because it is universally trusted and readily accessible, especially in rural areas where digital literacy or bank penetration is low. As SMBs transition toward digital payment methods, creating solutions that integrate with cash transactions can bridge the digital divide.
For instance, Brazil’s Pix payment system achieved broad adoption in part due to its “cash-out” points, which enable users to deposit cash and access digital services at local kiosks and stores. This approach reinforces trust by giving users flexibility to move between cash and digital seamlessly.
Key UX Strategies for Designing Resilient Offline B2B Payment Solutions
For product teams serving low-connectivity markets, designing offline-ready payment systems that integrate cash transactions is both a technical and strategic challenge. Here’s how to make it work.
1. Local Data Storage with Automatic Deferred Syncing
Problem: SMBs in remote areas often face spotty connectivity. In traditional digital payment systems, this can cause failed transactions or lost data, eroding user trust.
Solution: Local data storage ensures that transaction data is safely stored on the user’s device until it can sync with the network, maintaining a continuous experience.
Once the connection is restored, the system should automatically sync queued transactions without requiring user action. By integrating notifications like “Transaction Saved. Syncing Once Online,” users remain confident their data is secure and will process at the next available opportunity.
Use Case: The Kenyan mobile money platform M-Pesa, used widely in areas with unstable connectivity, uses local storage for transactions that automatically sync when connected. This design has driven adoption in underserved areas, providing a safety net for users who cannot rely on continuous internet access.
2. Minimalist, Low-Bandwidth Interfaces
Problem: Many SMBs in emerging markets use older, low-spec devices and have limited data access. Complex, high-data interfaces can hinder usage and drain resources quickly.
Solution: Design minimalist interfaces that prioritize essential actions. Avoid excessive visuals, animations, and data-heavy elements that could delay loading times or disrupt the user journey.
Instead, use straightforward icons, clear labels, and simplified workflows to guide users through payment processes with minimal clicks.
Actionable Tip: Incorporate visual affordances, like a simple “Payment Pending” notification, to inform users that their action has been registered even if it hasn’t yet processed.
This provides reassurance in low-data environments and keeps the interface responsive.
Use Case: In Ghana, the E-Zwich card, a prepaid smartcard, enables transactions for users with low-connectivity and low-spec devices by relying on a minimalist interface designed to be straightforward and data-efficient.
3. Cash-Out Options and Agent Networks
Problem: SMBs relying on cash for transactions need a way to bridge the digital and cash worlds without fully abandoning cash.
Solution: Implement Cash-out points or local agent networks where SMBs can easily deposit or withdraw cash as needed. This allows them to access digital services while keeping the option for physical cash, supporting liquidity in a format they trust.
Use Case: The OXXO network in Mexico allows users to deposit cash into their digital wallets at local convenience stores, giving them digital payment capabilities without needing a bank account. This model has been instrumental in expanding financial inclusion in cash-preferred markets.
Actionable Tip: Partner with local businesses to establish cash-out agents, enabling seamless integration with digital systems while meeting SMBs where they are.
4. Clear, Immediate Feedback on Transactions
Problem: Uncertainty is a major issue in offline transactions, as users may not know if their action has been registered.
Solution: Provide visual and audio feedback that instantly confirms a transaction’s status. For instance, a simple loading bar or a message like “Transaction Saved for Processing” can reassure users that their payment request is secure.
Use Case: The Razorpay Dynamic Soundbox provides both audio and visual payment confirmation capabilities. This innovative device enhances the customer experience by generating dynamic QR codes directly on the device, offering immediate feedback to both customers and merchants.
5. Optimized Power Consumption for Low-Spec Devices
Problem: Power reliability can be inconsistent, especially in rural areas. Apps that drain battery quickly or rely on continuous connectivity fail to serve users effectively.
Solution: Design low-power, resource-efficient apps that reduce background activity and only sync or update when necessary.
Minimize resource-intensive functions, such as high-resolution visuals or location tracking, to prevent excess battery usage.
Actionable Tip: Consider offering an “offline mode” option that uses minimal resources and only activates essential functions, helping users preserve their device battery for longer.
6. Localization with Familiar Language and Regional Currency
Problem: Payment solutions that overlook local customs, languages, and regional practices may feel unfamiliar or challenging to adopt.
Solution: Integrate local languages, currency options, and familiar terms within the app to ensure accessibility and ease of use. Localized systems build trust by recognizing the user’s specific context, fostering a sense of familiarity and reliability.
Actionable Tip: Consider in-app guidance in local languages, and include familiar terms to reduce friction and increase comfort for first-time users.
Leveraging Localization to Build Trust and Loyalty
Localization goes beyond mere language adjustments. When payment systems adapt to regional behaviors and preferences, they build stronger connections with SMBs.
For example, integrating local agents who can offer guidance on new features or troubleshooting in person can make a tremendous difference in encouraging adoption.
In Africa, mobile money agents play a critical role in fostering trust by acting as familiar, accessible resources that bridge the gap between digital services and cash-based economies. For example, Nigerian Fintech Moniepoint has built an extensive distribution network of local agents who personally engage with communities.
These agents, known as relationship managers, are trusted local figures who educate their neighbors about the benefits of having a bank account and using digital financial products.
Localized solutions should respect existing cash habits, work with low-power devices, and respond to the unique needs of rural areas. When users feel their daily routines are understood and supported, they are far more likely to adopt and advocate for these solutions.
Conclusion: Building a Sustainable, Inclusive Payment Future
Designing offline-ready, cash-compatible payment systems for SMBs in emerging markets is a pathway to genuine economic inclusion.
For financial institutions, fintechs, and payment solutions providers, this isn’t just a call to expand user bases—it’s an opportunity to unlock the economic potential of millions of SMBs who have long been underserved by digital payment solutions.
By respecting the realities of cash dependence, low connectivity, and localization, payment providers can meet SMBs where they are and provide the tools they need to thrive.
If your organization is ready to create meaningful, adaptable payment experiences for SMBs across emerging markets, let’s connect.
At WDIR, we’re dedicated to designing payment solutions that empower businesses in every environment. Partner with us today!
