Is cash still king?
Alternative Payment Methods (APMs), or AMOP (Alternative Methods of Payment), are simply payment methods other than cash. APMs include debit or credit card payments, digital wallets like Google and Apple Pay, account-to-account payments, loyalty programmes, Buy Now Pay Later (BNPL), instalment programmes, or cryptocurrency like Bitcoin.
Gone are the days of a customer standing behind a till waiting for the shopkeeper to count out their change. We’ve become used to swiping our cards and hearing the familiar ping notification when the transaction goes through. Checking out from an ecommerce website is much the same. Businesses have adopted APMs and offer various options to avoid friction or delays when customers are ready to purchase. The more payment options an ecommerce site offers, the more likely a customer is to convert.
The benefits of a cashless society are numerous for the consumer. They don’t run the risk of being robbed and their wallets stolen. They immediately have access to their funds, and their money travels with them wherever they go, to name a few. There are various benefits for businesses offering APMs as well. First, let’s run through the various alternative payment methods and how popular they are.
Which way do people pay?
According to an article published in Statista, digital wallets, credit, and debit cards are the most popular methods for ecommerce transactions. Statista estimates that digital and mobile wallet payments account for roughly half of online transactions worldwide. According to Jupiter Research, digital wallet users will exceed 5,2 billion users globally by 2026. In another report, Jupiter Research states that the total value of digital wallet transactions will rise from $9 trillion in 2023 to surpass $16 trillion by 2028, an astronomical rise of 77%.
Benefits APMs hold for merchants
By offering diverse payment methods, you are making your business more accessible to consumers. The wider variety of payment methods you offer, the bigger the chances prospective buyers will complete the transaction. It stands to reason that you can sell to a broader audience by offering more payment methods to increase your turnover. Not only will your turnover increase, but your customers will also be more loyal because they know they are safe buying from you. Businesses that offer various APMs gain a competitive advantage over their competitors.
Speaking of security. Some APMs, like digital wallets and cryptocurrency, offer robust security features that protect customers and merchants from fraud.
One of the biggest advantages of APMs is that they often take care of cumbersome currency conversions for cross-border payments. Consumers no longer need calculators to calculate what something will cost on the other side of the border. Everything happens behind the scenes and allows businesses to trade internationally seamlessly.
Implementing APMs
Before implementing various APMs, do your research. Check which payment methods are popular in the markets you want to trade in. Analyse competitors in those markets and investigate industry trends. It’s always better to make data-informed decisions rather than trusting your instincts.
When considering which APMs to offer, keep your business model and customers’ preferences in mind. Implement robust security measures and comply with relevant regulations to protect customer data and financial information. Once you’ve put your APMs in place, shout about it! Communicate to current and prospective buyers that you offer various APMs to put their minds at ease and that they can complete their purchases with the payment method of their choice. There’s nothing as frustrating as browsing a site and selecting the products you want, only to realise that you can’t pay with your particular card or wallet. It’s one of the reasons customers abandon their carts and never return to your site.
Think of payment methods as a moving target. Technology advances so fast that new payment methods regularly see the light of day. It will benefit you to keep abreast of industry and payment trends so that you can anticipate future developments and implement new payment methods before your competitors do.
The last step in implementing APMs is choosing a payment provider that stays abreast of technology and offers the latest payment options safely and securely. Why don’t you speak to Truevo? Our online payment solution is built for faster transaction speeds and optimal security. Businesses can choose from no-code, plug-and-play integration to fully customisable APIs. We offer the world’s most popular payment methods, including credit and debit card payments and digital wallets like Apple and Google Pay. Drop us a line. We can’t wait to make payments better with you.
