What is an International Payment Gateway?

Key takeaways

• An international payment gateway lets Australian merchants accept payments from global shoppers in their preferred local currencies and payment methods.

• Foreign exchange conversion markups among mainstream gateways often range from 2%–4%, significantly reducing cross-border profit margins.

• Using like-for-like settlement and Global Accounts, Australian businesses can skip forced FX conversions and access exchange rates from 0.50% on major currencies.

International expansion is a priority for many eCommerce businesses, but success hinges on more than just ambition. Accepting payments from overseas customers can be difficult without the right systems in place due to local payment expectations, the cost of conversions, and setup barriers.

A 2026 report from Australia Post found 9.8 million Australian households shopped online in the past year, spending over A$69 billion in total¹. A modern international payment gateway offers a way a path to entry for your business into this market. It simplifies currency conversion, lowers transaction costs and streamlines global transactions, without the usual complexity.

This guide explores how an international payment gateway works and outlines what to look for when choosing a provider.

What is an International Payment Gateway?

International payment gateways or global payment gateways are commonly used terms for technologies which process payments from overseas customers. They simplify cross-border transactions by accepting payments in multiple currencies, settling funds quickly, and offering an integrated buying experience for customers — no matter where they are across the globe.

They handle all the tasks in the background required for a seamless payments experience. This includes collecting, encrypting and transmitting transaction data, as well as transaction authorisation, currency conversion, fraud detection and funds settlement. 

What are the benefits of using a Global Payments Gateway?

While traditional cross-border payment methods like bank transfers, Swift and wire services are still common, they often fall short on speed, cost-efficiency and ease of reconciliation. An international payment gateway provides a more efficient, scalable solution built for modern business needs. Here's why:

• Accept multi-currency payments: Customers can choose to pay in their local currency rather than the merchant’s base currency. This creates a more familiar and transparent checkout experience, reducing uncertainty around exchange rates. For merchants, automatic currency conversion can open up an additional savings by applying a competitive FX margin on the converted amount, while still offering customers clarity and choice at the point of sale.

• Same-currency settlement: Some global payment gateways can settle and hold funds in another currency to reduce conversion fees. This makes it cheaper and easier if the business also makes payments in foreign currencies.

• Competitive costs and FX rates: While traditional international bank transfers might seem “simple,” they may often come with hidden costs such as FX markups of between 2–4%, longer settlement cycles, and admin overheads. International payment gateways can lower the total cost of ownership through better FX rates, faster settlement, automation, and lower error rates.

• Multiple integration options: Most international payment gateways integrate directly with an eCommerce platform or website, enabling real-time, automated payments at checkout. For example, Airwallex’s Global Payment Solutions offers multiple integration methods such as pre-built web components, popular eCommerce platform integrations, payment links and a custom API. This gives more control over how payments are received. 

• Enhanced eCommerce customer experiences: Most traditional global payment methods require customers to leave the website to complete the transaction. Integrating a global payment gateway keeps the entire payment flow within the online store. Leading international payment gateways such as Airwallex also support localised, global payment methods, which allow customers to pay in their own currency — a known tactic to reduce cart abandonment and increase conversion rates.

• Faster settlement and improved cash flow: While traditional cross-border payments can take multiple days, or even weeks to process, modern payment gateways can settle funds as quickly as 24 to 48 hours. This accelerated cash flow gives finance teams more flexibility and helps improve working capital. 

• Built-In security and global compliance: Leading payment gateways come with PCI DSS compliance, tokenization, encryption, and real-time fraud detection built in. They may also help to comply with global privacy and data protection regulations (e.g. GDPR), reducing legal and reputational risk without adding technical burden.

• Scalable infrastructure: A robust payment solution can support higher volumes, more currencies and more payment methods without disrupting operations or needing to replatform as the business grows and expands. 

• 24/7 availability across time zones: Gateways operate around the clock, so payments can be accepted and processed from customers in any time zone, at any time. No more waiting for “the next three to five business days” for payments to clear.

How do International Payment Gateways work?

When a customer makes a purchase in a foreign currency, the international payment gateway will perform a series of steps in the background:

1. The customer enters their payment details (e.g. credit card or local payment method) and the payment gateway encrypts the customer’s details.

2. The payment gateway securely transmits the payment information to the payment processor. If the payment gateway offers automatic currency conversion, the payment is converted to the customer’s selected currency in this step.

3. The payment processor routes the transaction to the customer’s issuing bank (or alternative payment provider) to request authorisation.

4. The customer’s bank approves or declines the payment. If approved, the funds are authorised and the transaction is confirmed.

5. The payment is then settled, meaning the funds move from the customer’s account to the merchant’s business account.

The international payment gateway simplifies this process so that for the customer, it’s a few clicks and a seamless buying experience. For a merchant’s business, it allows acceptance of multiple currencies from different countries with minimal setup and admin overhead. 

What kind of businesses need an International Payment Gateway?

Any business that sells to customers overseas or plans to expand globally should consider an international payment gateway. This includes:

• eCommerce retailers with international shoppers.

• SaaS platforms offering products and subscriptions across multiple regions.

• Freelancers, agencies and consultancies billing overseas clients.

• Travel, hospitality, and education providers accepting bookings from abroad.

• Export businesses and wholesalers dealing in foreign markets.

Features to consider when choosing a global payment gateway

Supported payment methods and localisation

Look for the ability to accept a wide range of global and local payment methods your current and future customers prefer – for example, credit and debit cards, wallets (Apple Pay, Google Pay), bank transfers, BNPL, Alipay in China, and SEPA in Europe. Customers are more likely to convert when they see familiar payment options and can pay in their local currency. Airwallex, for reference, accepts over 160 payment methods worldwide.

Multi-currency support

Look for the ability to accept and settle payments in multiple currencies. The best payment gateway providers let you accept various currencies but force conversion and settlement in AUD, which can mean extra conversion fees when issuing refunds or paying suppliers in the original transaction currency. Airwallex, for example, accepts payments in over 130 currencies and settles into 20+ different currencies with Global Accounts. Multi-currency support reduces hidden FX fees, improves pricing transparency, and protects margins by letting you control which currencies you hold and when conversions happen.

FX fees and pricing structure

Understanding foreign exchange costs and fee structures is critical to protecting your margins on cross-border sales. Gateway costs generally break down into domestic transaction rates, international cross-border surcharges, fixed gateway fees, and FX conversion markups. Look for transparent fee structures, clear FX margins ideally aligned with mid-market rates, flexible pricing models (fixed, interchange++, or blended), and no hidden costs such as chargeback fees or conversion markups buried in the fine print.

Multi-currency pricing (MCP)

Multi-currency pricing lets Australian merchants display and charge products in a customer's local foreign currency, while final funding settles in Australian dollars. Under this model, the gateway converts the foreign payment at the point of sale and adds an FX markup on top of the exchange rate.

For example, say an Australian merchant lists a product at A$225.00, shown to an overseas shopper as US$151.47 at the mid-market rate (0.6732 USD per AUD). If the gateway applies a 2.0% FX markup on settlement, the merchant receives roughly A$220.50 back into their AUD account – A$4.50 short of the original price – as the exchange fee, on top of standard card processing fees.

Dynamic currency conversion (DCC)

Dynamic currency conversion gives overseas buyers the option to convert an AUD purchase price into their home currency at the point of sale. The conversion rate is set by the acquiring bank or a third-party DCC provider, often with FX margins of 3.0% to 5.0%.

For example, a shopper in Germany buys a jacket priced at A$200. At a 4% DCC markup, the exchange rate they're charged builds in an extra €5.20, split between the DCC provider and the acquiring bank. DCC gives shoppers price certainty at checkout, but a high markup can still trigger cart abandonment once shoppers spot it.

Like-for-like settlement

Like-for-like settlement lets merchants price, collect, and settle funds in the exact same foreign currency, without an immediate conversion fee. This requires a payment gateway integrated with multi-currency business accounts.

For example, an Australian business selling a US$100 software subscription can receive the full US$100 into a multi-currency account, then either pay US-based vendors directly in USD or convert it to AUD later at a low mid-market markup rate (such as Airwallex's 0.50% rate on major currencies) – avoiding a forced double conversion.

Separate merchant accounts

Some international payment gateway providers bundle a merchant account with their gateway. Others require you to sign up for a separate merchant account with a bank, and some may require a foreign bank account to settle in a particular currency. 

Bundled accounts are simpler and tend to cost less, since you don't need to manage a separate facility, and they often offer integrated reporting in a single dashboard. A separate merchant account may attract higher fees and a more rigorous application process.

Settlement speed

Look for fast payout times – for example, funds settled same-day or on a custom date, as Airwallex offers. Faster settlement improves cash flow and lets you reinvest in the business sooner.

Security and compliance

Look for PCI DSS compliance, 3D Secure authentication, two-factor authentication, tokenization, fraud prevention tools, and regulatory compliance (such as GDPR and anti-money laundering/counter-terrorism financing rules). Meeting the highest global security and compliance standards helps protect customer data, reduces the risk of fraudulent transactions, and builds trust with your customers.

Integration and compatibility

Look for easy integration with your preferred eCommerce platform (such as Shopify or WooCommerce), invoicing system, or other software. Depending on your needs, choose a provider with flexible integration methods, from no-code options to fully customisable APIs. This gives you control over your checkout experience, minimises tech debt, and tailors payments to your business's needs.

Reporting and analytics

Look for a comprehensive range of reporting tools, such as dashboards with real-time transaction data, settlement reporting, cost reporting, refund management, and reconciliation tools. Integrations with accounting and bookkeeping software can also streamline reporting and admin. Good reporting helps you monitor performance, spot trends, cut admin, and make better business decisions.

Customer support

The best global payment providers offer 24/7 support, informative help centres, and a local presence in Australia. Some providers offer dedicated account managers, usually at higher transaction volumes. Responsive support matters because payment issues can be critical to your business – it helps minimise downtime and any impact on customers.

Scalability

Look for a provider that can handle increasing transaction volumes and expansion into new markets without you needing to switch providers. A provider with multiple pricing tiers, flexible integration options, and features that grow with the business helps you avoid a costly replatform later, and may offer negotiated pricing once you hit certain transaction thresholds.

How do you integrate an international payment gateway with your eCommerce platform?

Integrating a payment gateway means linking your eCommerce platform backend with the payment processor via official plugins, partner apps, or custom API keys.

Shopify

You can activate an international payment gateway on Shopify through the store admin panel in five steps:

1. Log in to your Shopify Admin store, go to Settings, and select Payments.

2. Click Add Payment Methods, search for your preferred gateway provider (for example, Airwallex or Stripe), and install the partner app.

3. Enter your account API credentials (public key and secret key) from your gateway developer dashboard.

4. Enable multi-currency capture in Shopify Markets to let the store currency switch automatically for global visitors.

5. Test the checkout integration in sandbox mode with test card credentials before switching to live production mode.

WooCommerce

Integrating WooCommerce means configuring gateway plugins and enforcing cryptographic signatures to keep pricing secure:

1. Download and activate the official payment gateway plugin from the WordPress repository or the gateway provider's site.

2. Go to WooCommerce > Settings > Payments and enable the installed gateway module.

3. Enter your live and test API keys into the plugin's backend configuration.

4. Set up an MD5 secret signature or HMAC payload signing to prevent client-side price tampering. The server hashes cart parameters using the secret signature before redirecting to payment; if someone alters order totals in the browser, the gateway's recalculated hash fails and the order is rejected automatically.

5. Set up webhook endpoints in your gateway portal to sync real-time order status updates (payment_intent.succeeded).

Magento 2

Setting up Magento 2 (Adobe Commerce) means installing backend modules via Composer and configuring multi-store scope settings:

1. Install the payment module via Composer by running composer require provider/module-payments in your Magento root directory.

2. Enable the module and run bin/magento module:enable --clear-static-content, followed by bin/magento setup:upgrade.

3. Go to Stores > Configuration > Sales > Payment Methods and configure API keys for each Store View covering your foreign markets.

4. Enable multi-capture in the backend to allow split shipments, where partial payments are captured as individual consignments ship.

5. Enable card tokenization and vaulting so returning global customers get secure one-click checkout.

What's next for international payment gateways in 2026?

The global payments landscape is evolving fast, with artificial intelligence, digital assets, and interconnected central bank payment networks reshaping how cross-border transactions happen.

What is the Agentic Commerce Protocol (ACP)?

The Agentic Commerce Protocol (ACP) is an open-source standard co-developed by Stripe, OpenAI, and Meta under the Apache 2.0 licence, letting AI agents discover products and complete purchases on a buyer's behalf through conversational interfaces. Built to power in-chat commerce experiences—ACP turns traditional browser-based shopping into agent-driven checkout flows.

Through ACP, an AI agent negotiates product selection, shipping options, and inventory availability with a merchant's API using structured data requests. The protocol uses Shared Payment Tokens – a secure payment primitive built by Stripe – which let AI agents initiate transactions using a shopper's saved payment preferences without exposing card credentials. Merchants keep direct relationships with buyers, decide whether to accept or decline orders, and manage fulfilment, while gaining a new acquisition channel through AI platforms.

How does stablecoin settlement reduce cross-border costs?

Stablecoin settlement uses blockchain-based digital currencies (such as USDC) pegged to fiat currencies to bypass legacy correspondent banking chains and international card network fees. Native stablecoin processing, such as Stripe's stablecoin payment suite, lets merchants accept stablecoin payments from global customers at rates around 1.5%.

Traditional cross-border card transactions pass through issuing banks, card schemes, acquiring banks, and FX intermediaries, racking up cumulative fees and currency markups that often exceed 3.5%. Stablecoin checkout skips these legacy networks by settling transactions on public blockchain networks in seconds – cutting cross-border processing fees by more than half compared with traditional card fees, and delivering payment clearance without cross-border settlement holds.

What are real-time payment network links (Project Nexus)?

Project Nexus is a multilateral initiative led by the Bank for International Settlements (BIS) Innovation Hub to connect national real-time payment systems into a single global clearing network. Rather than building complex bilateral connections between individual countries, Project Nexus provides one technical framework that links domestic instant payment systems such as India's Unified Payments Interface (UPI), Malaysia's DuitNow, Singapore's PayNow/FAST, Thailand's PromptPay, and the Philippines' InstaPay.

This cross-border interoperability lets consumers and businesses send instant account-to-account payments internationally using simple local identifiers, such as phone numbers. By routing payments directly across domestic real-time rails, Project Nexus cuts out traditional card scheme interchange fees and correspondent bank delays, giving Australian merchants a lower-cost, instantly settled alternative to credit cards for cross-border transactions.

Ready to convert more customers globally?

Businesses aiming to streamline global payment processes can benefit from a trusted payment gateway for international transactions. These platforms help accelerate operations, reduce costs, and eliminate friction from cross-border payments. Airwallex is purpose-built to support international expansion – explore its global payment solutions or connect with the team to establish the right infrastructure.

Frequently asked questions (FAQs)

What is an international payment gateway?

An international payment gateway is a software service that captures, encrypts, and processes online transactions for buyers purchasing goods or services across foreign borders in different currencies.

How does an international payment gateway differ from a domestic one?

An international payment gateway processes cross-border transactions across foreign currencies, regional card schemes, and international banking networks, whereas a domestic gateway processes payments exclusively in Australian dollars within domestic banking channels.

What currencies can be accepted using a global payment gateway?

Global payment gateways can typically accept 100 or more foreign currencies – Airwallex, for example, accepts over 130 currencies, letting Australian merchants charge buyers in major currencies like USD, EUR, GBP, NZD, CAD, SGD, and JPY.

Is settlement instant with an international payment gateway?

No, settlement generally isn't instant; standard cross-border credit card processing takes two to five business days to clear, though gateways integrated with local multi-currency accounts let you access like-for-like foreign currency funds immediately after capture.

Is Airwallex an international payment gateway?

Yes, Airwallex is an international payment gateway and end-to-end financial platform that lets Australian merchants accept global card payments, collect foreign currencies into multi-currency accounts, and make low-cost cross-border transfers.

How can Australian merchants avoid high FX conversion markups?

Australian merchants can avoid high FX conversion markups by using gateways that support like-for-like settlement into multi-currency accounts, listing prices directly in foreign currencies, and choosing processors with transparent FX margins, such as Airwallex's 0.50% rate on major currencies.

Which international payment gateway is cheapest for Australian businesses?

Airwallex is one of the most cost-effective options for scaling Australian businesses, with international card processing fees of 3.40% + A$0.30 and FX markups from 0.50%, while Adyen offers transparent interchange-plus rates suited to high-volume enterprise businesses.

Does my checkout integration affect my PCI compliance scope?

Yes. Your choice of checkout integration directly affects your PCI compliance burden: hosted checkout fields, iFrames, or modal redirects offload sensitive card handling to the payment gateway, qualifying you for simplified SAQ A compliance, while API integrations where card data touches your server require full SAQ D compliance auditing.

Sources:

1. https://auspost.com.au/business/ecommerce/ecommerce-report

2. https://www.airwallex.com/docs/transactional-fx__funding-and-settlement-models#settlement-timing