Microsoft has teamed up with dLocal, an Uruguay-based cross-border payments platform to reach new customers in emerging markets with local payment methods.
In the first phase of the collaboration, Microsoft launched local acquiring for both credit and debit cards in Nigeria. In the coming months, Microsoft will use dLocal’s Payins solution to add additional local payment methods, as well as expand to include other emerging markets, globally.
Through the agreement, shoppers on the Microsoft Store website in Nigeria will be able to pay with local credit cards for a variety of products, such as Microsoft 365 subscriptions.
Previously, customers could only pay with international credit cards, triggering exchange fees and higher rates of declined transactions due to exchange rate volatility. By working with dLocal to offer locally issued Visa and Mastercard card payments, Microsoft will be able to operate in Nigeria with improved authorisation rates.