Not so long ago, accepting cash and credit card payments was enough to keep the business going. However, these days, organizations offering their customers only traditional payment options risk being outplayed by their competitors. Think about it: in 2021, approximately 7% of people abandoned their shopping carts because the merchant didn’t offer enough payment methods.
Thus, it is extremely important to consider alternative payment options. If your company is still falling behind, this guide is sure to be a game-changer. Here we will cover the main alternative ecommerce payment methods and explain what benefits you will get by offering them to your clients.
The term “alternative payment methods” or “APMs” refers to ways of paying for goods and services other than cash and traditional, internationally accepted credit or debit cards like Visa, Mastercard, and American Express.
Here is an overview of the most popular alternative payment systems used by merchants worldwide:
This category includes all electronic payment transactions conducted via a bank account without entering debit or credit card data.
Domestic Card Schemes
Unlike international service providers such as Visa and Mastercard, domestic card schemes are payment methods used on a local level.
Staged and Pass-Through Digital Wallets
Staged digital wallets are virtual instruments that securely store consumers’ payment information and enable them to purchase goods and services online or at points of sale. Here are some examples:
Pass-through wallets are mobile solutions that allow customers to conduct both POS and online transactions. Such payments are possible due to a digital token based on the physical credit card. When it comes to using this method for POS payments, a client has to bring their device close to the terminal and confirm the transaction.
As the name of this method suggests, mobile payments are transactions that customers can conduct with their smartphones. These payments include both in-app and browser-based purchases.
Pay by Link
Another noteworthy mention among alternative online payment methods is Pay by Link. Such transactions are conducted through payment links that the merchants can forward to their customers via a text message, an email, or a QR code.
Buy Now, Pay Later
When a user conducts a BNPL transaction, it means that they purchase products or services and pay for them over the course of time. This method often involves an upfront payment followed by monthly installments. Notably, during the first two months of 2021, the US shoppers’ usage of BNPL services has demonstrated a 215% year-over-year increase.
A wire transfer is a payment method that implies a direct transfer from a client’s bank account to the merchant.
A direct debit, or an eCheck, is an alternative payment method that requires client authorization for the merchants to be able to withdraw funds from their account automatically. It is a convenient way for businesses to bill their customers on a recurring basis.
APMs are secure, fast, and easy to use, so it’s no wonder why many consumers find them appealing. But how can your company benefit from introducing them? Here are just a few advantages:
The APMs that a merchant should choose to integrate depend on a variety of factors. Here are some steps you can undertake to determine the alternative payment solutions that will suit your company best:
With this simple algorithm, you are sure to expand your business’s payment options beyond credit cards and cash and get the most out of the APM integration. Alternatively, you can reach out to payment service professionals like Payneteasy for expert advice and full technical support.
Top Alternative Payment Methods by Region
To make the alternative payment methods selection process even more convenient for you, we have compiled some insights on the most popular solutions by region:
Now that you are aware of the types of alternative payment solutions out there and what their benefits are, you are probably wondering how to seamlessly integrate them into an existing business.
Luckily, there is no need for merchants dealing with APMs to single-handedly juggle all these different payment methods. Instead, you can delegate this task to expert companies that specialize in payment solutions, such as Payneteasy. This way, all of your payment gateway transactions will be easily manageable from one platform. Reach out to us now and receive a custom quote within one workday!