What are alternative and local payment methods?

To understand alternative payment methods (APMs), you first need to know how they differ from traditional payment methods.

Everyone knows Mastercard and Visa - they have been around for fifty years or more. Other traditional payment types have been around for much longer - thousands of years in the case of cash.

But technology, customer expectations, and the world has changed so much in the last few decades. This has created the opportunity for dynamic new alternative payment methods into the global payments landscape.

An alternative payment method is one made digitally, so does not tend to offer a direct alternative to a cash payment. These can enable consumers to shop online or used at a payment terminal for in person transactions.

Common reasons for the emergence of alternative payment methods include new technologies or regional variations in customer preference. Because alternative payment methods are provided electronically, they can often be tailored to create a customer experience that is closely aligned to specific demographic needs and expectations.

These factors continue to change at an unprecedented rate.

Merchants looking to grow into new markets are well advised to evaluate which alternative payment type is need to address the needs of their target demographic:

You have to, to serve these markets, re-imagine how money can be managed and moved because there’s going to be more change in the next five years in financial services than happened in the past 30.‍

– Dan Schulma, President of PayPal

As Dan puts it, the financial services space is moving at a space where offerings such as alternative payment methods are not really a new thing. They are very much here and now.

In this article, we look at the most popular alternative payment methods and why they are so important in accelerating the growth of your business.

What is an alternative payment method?

An alternative payment method is any way to pay for goods or services that doesn't involve traditional payment methods such as cash, cheques or through major card networks like Visa, Mastercard, or American Express.

They include Direct Debits, digital wallets (apps such as Google Pay, Apple Pay, Samsung Pay, PayPal), mobile payments, P2P platforms, cryptocurrency, bank transfer, and 'buy now, pay later' (BNPL) options like Klarna.

Payment methods have developed significantly over millennia. From bartering in 3000 BC to the introduction of coins in 1100 BC, followed by paper money in the 11th-17th centuries, and credit cards in the 19th century.

Today, alternative payment methods have emerged with the rise of online payments and e-commerce.

Research by EY stated that alternative payment methods volumes reached $19t globally in 2022. It also found that more than 85% of merchants are planning to accept new APMs in the next one to three years.

Alternative payment methods were popularized by services like PayPal, which enabled low-cost international transfers.

The surge is due to evolving customer preferences and expectations. Customers seek convenient and hassle-free payment experiences, shifting away from traditional methods. Merchants that offer alternative payment methods are providing greater customer choice to their customer base, which can be a strong competitive advantage.

Advancements in checkout technology has also accelerated adoption. The process of integrating alternative payment methods has been greatly simplified so accepting alternative payment methods is far easier than ever before.

Popular alternative payment methods

Some popular examples of alternative payment methods are as follows:

Buy Now Pay Later (BNPL)

BNPL lets customers purchase their good or services and pay later in instalments. Payments come from a bank account, debit, or credit card.

Big players in the BNPL space include Klarna and Afterpay. An example is Klarna's "Pay in 3" option, charging interest-free payments every 30 days.

银行转账

Bank-transfer apps move funds from the customer's bank account to the merchant's. These are typically push payments. The customer reviews and authorises the amount in their online or mobile banking app.

While transfers can take a couple of business days, now real-time interbank payment systems often allow funds to transfer in seconds.

Digital wallets

数字钱包存储支付卡，并为每笔交易生成标记化的卡号。

消费者在网上、应用程序或店内购物时，无需每次都输入银行卡信息，就能享受到安全、便捷的购物体验。

它通常是电子钱包、数字钱包和电子现金的总称，而不是包含实物现金的钱包。

亚马逊支付

亚马逊支付允许客户使用其亚马逊账户中保存的付款方式，无需每次都输入银行卡信息。该网关以安全性高而著称。

通过整合亚马逊支付，企业可以与全球主要品牌结盟，从而增加了一层信任。

电子钱包（eWallets）

电子钱包可储存银行转账、信用卡或店内支付的资金。它可以实现在线或店内交易，需要通过设备接入互联网。这些流行的替代支付方式包括支付宝、贝宝和微信支付。

PayPal

PayPal 以其便捷性成为最受欢迎的支付方式之一。客户可以保持现金余额，也可以从其他来源添加资金用于购物。PayPal 还有一种称为 PayPal Credit 的融资方式。

PayPal 快速、方便、安全，在与陌生商户交易时无需输入信用卡号码。

移动钱包

移动钱包以电子方式将资金存储在移动设备上，通过银行转账、银行卡现金或移动运营商提供资金。

它们可以使用二维码或短信等非接触式界面，实现在线、应用内或当面购物、转账和账单支付。

Google Pay

Google Pay 也因其便捷性和在网上交易中的受欢迎程度而成为首选替代支付方式。

它允许使用保存的信息在第三方网站上安全结账。

直接借记付款

直接借记允许定期自动付款，几乎可以即时处理，方便用户。直接借记与银行转账略有不同，后者通常是一次性付款方式。

通过直接借记，客户无需记住付款日期，因为一旦确定付款日期，款项就会自动扣除。

现金支付

虽然替代支付方式通常是数字支付，但也可以包括现金支付。

在网上购物时，客户可以选择现金支付方式，并收到一个条形码或独特的参考编号。

然后，顾客在零售点出示此卡，以现金支付。付款后，商家就会完成订单或提供服务。流行的电子现金方法包括 Boleto、Fawry 和 Oxxo。

有些替代支付方式更注重地域性。中国银联等本地卡计划是一种特别受欢迎的替代支付方式，对于希望为这一客户群提供服务的商户来说至关重要。

其他支付方式的好处

减少购物车放弃率

对于付款方式有限的商家来说，放弃购物车是一个重大风险。如果潜在客户认为可用选项不熟悉，他们可能会放弃购买。

客户的选择和便利

商家要想提高销售额，就必须使支付流程简单而熟悉。如果他们看不到自己喜欢的付款方式，就很可能放弃购物车。

优秀的支付服务提供商可以为商户提供一整套流行的支付方法，从 Apple Pay 等数字钱包到电子钱包等等。

了解其他支付方式并对客户需求做出响应，对于企业的发展和成功始终至关重要。

商户还可能会发现，使用其他支付方式可以帮助他们降低处理成本，因为他们可以避免使用传统的支付系统。

欺诈检测和安全

任何能让消费者向企业汇款的电子方式都有可能成为欺诈的目标。但是，不能因为这些是替代支付方式，就不重视欺诈侦查。

与传统支付方式相比，这些交易受到相同或更高水平的审查。

替代支付方式为何重要

商家如果能让顾客使用自己喜欢的支付方式完成交易，就有可能获得显著优势，并建立起客户服务的良好声誉。

要有效地锁定客户，就必须全面了解趋势并超越客户的期望。这就需要根据客户的偏好，提供无缝、顶级的支付体验。

为企业选择最佳替代支付方式

在为企业确定最佳替代支付方式之前，请彻底了解客户的支付偏好。考虑地点及其采用新支付技术的准备情况。不同的国家会有不同的支付偏好。

商户还必须评估哪些 APM 符合其业务要求和需要。考虑的因素包括每笔交易的成本以及设置和管理的难易程度。确保符合相关法规。

要最大限度地提高转化率，并非必须提供所有的 APM。相反，应专注于为目标市场提供最受欢迎的 APM。有些支付方式甚至会对企业产生不利影响。

结论

替代支付方式（APM）是除现金或主要银行卡计划等传统支付方式之外的现代商品或服务支付方式。

将替代支付方式纳入其支付战略的商家可以减少购物车放弃率，同时满足客户的偏好。这对于创造熟悉而便捷的支付体验至关重要。

主动了解当地的支付方式、趋势和客户需求，是在竞争中保持领先的关键。

在为您的企业选择 APM 时，请考虑客户偏好、合规性以及对底线的影响，以提供最有效的支付解决方案。

准备好让您的支付策略更上一层楼了吗？使用 Nuvei，您可以根据客户的偏好无缝集成各种替代支付方式。

保持领先地位，优化结账体验，提高转换率。