From mobile wallets to BNPL and cryptocurrency, the right payments solution should make it easy for merchants to offer preferred payment methods that resonate with their customers. This is especially important when expanding into new markets.
Aside from increasing conversions, an optimized checkout experience with alternative payment methods also provides a level of security that satisfies customer expectations.
Digital wallets
A popular form of alternative payment method, digital wallets are a secure way to store and use funds online. These services can also be used to facilitate recurring payments, such as subscriptions. The digital wallets can be stored on smartphones or other mobile devices, which makes them easy to use. Cryptocurrencies, including Bitcoin, are also growing in popularity as an alternative payment method.
These payment methods are especially important for merchants seeking to expand their businesses internationally. Different regions and countries have their own specific payment habits, banking rails and regulations. This means that, if your business doesn’t offer an alternative payment method, you may miss out on potential customers.
Offering alternative payments is a must for any merchant that wants to be competitive in the global marketplace. Whether it’s digital wallets, BNPL or cryptocurrencies, the right payments technology can help you grow your business while providing your customers with a seamless experience. Learn more today.
Online banking
Online banking is a way for customers to pay for goods or services directly from their bank account. This method is often safer than traditional payment methods because it uses a secure network to transmit information, and there’s no chance for fraudsters to steal checks from the mail. It’s also convenient because customers can manage their payments from any location with an internet connection.
Another popular alternative payment method is BNPL, which allows customers to spread the cost of purchases through instalments with no interest or transaction fees. This method is favored by subscription-based businesses, which can reduce their susceptibility to involuntary customer churn through automated recurring payments.
As technology continues to change the payments landscape, it’s more important than ever for merchants to offer a broad range of alternative payment methods at checkout. Whether you need digital wallets, buy now, pay later solutions or cryptocurrencies, the right payments software will make it easy to implement these and other APMs while providing a seamless experience for shoppers.
Buy now, pay later solutions
Buy now, pay later solutions (also known as BNPL) are popular alternative payment methods that allow customers to finance purchases in installments. These services are commonly used by ecommerce retailers to increase conversion and average order value, as well as reach new audiences. Many of these services offer a variety of repayment terms, from six months to multiple years.
Generally, BNPL providers do not affect a customer’s credit score, as long as they make payments on time. However, a business may incur processing fees when customers use these payment methods.
Offering a wide range of alternative payment methods is critical to the success of an online business. These methods provide consumers with the convenience they need while increasing a merchant’s global reach and reducing risk of fraud. In addition, these methods can help businesses to grow their revenue and brand in a highly competitive market. Moreover, these payments are secure and fast. Thanks to enhanced security features, such as biometric authentication and tokenization, they’re even more reliable than traditional payments.
Mobile payments
The popularity of alternative payment methods is largely driven by the fact that they offer more flexible and secure alternatives to traditional credit cards. As a result, they are a necessity for businesses that want to grow both locally and globally.
APMs enable ecommerce merchants to offer a more personalized and convenient checkout experience for their customers. This helps create a positive customer association and makes shoppers more likely to return.
Moreover, the use of biometric authentication and tokenization makes these newer forms of payments much more secure than traditional chip-and-PIN transactions. This makes them a popular choice for both online and offline purchases.
While the most well-known example of an alternative payment method is a digital wallet, they are far from being the only option available. Direct carrier billing allows consumers to charge their purchases to their mobile phone bill, and cryptocurrencies like Bitcoin are also growing in popularity. This is especially true in the Asia Pacific region, where digital wallets and buy-now-pay-later schemes make up a significant percentage of total payment volume.