“Show me the money,” a well-known phrase used in the 1996 film “Jerry Maguire,” may well be a merchant’s rallying cry. In this competitive marketplace, offering more ways for customers to shop and pay is vital to expanding business operations, gaining customer loyalty, and increasing profits. Cash, checks, and credit cards are the standard paying methods; however, more customers are moving towards alternative payment methods (APM).
An alternative payment method is as it sounds: an alternative way of paying that doesn’t rely on traditional payment methods. In the internet era, PayPal is the most well-known brand, although there are many other successful brands as well. Different types of alternative payment methods are broken down by category.
Bank Transfers
First, some APMs involve bank transfers. When an online purchase occurs, the shopper approves the funds using an online banking method. The World Payment Report found that out of all APMs, bank transfers are gaining ground almost as quickly as e-wallets for e-commerce. If customers don’t want to use their credit card, bank transfers allow them to shop online.
Mobile Wallets
A mobile wallet sometimes called an e-wallet, is a service that allows you to pay for things through a mobile phone app. This software-based system securely stores users’ payment information and passwords for many payment methods and websites. Digital wallets allow many in developing nations to participate more fully in the global financial system.
Cash-In
Cash-in APMs offer a reliable alternative to credit cards and bank accounts. Customers can choose between two types of cash-in systems: prepaid cards that use traditional credit cards and prepaid cards that are independent of the credit card system. According to the World Payments Report, prepaid cards are most popular in Italy, and prepay APMs are most popular in South Africa and Nigeria.
Knowing these categories of APMs will help you understand what type of option you want to provide for your customers. Each country or region will have APMs that are more popular than others. Among the top-10 markets for non-cash transactions, the US continued to dominate the list, followed by the Eurozone. Russian, India, and China are also top markets for growth. You will want to offer Alipay and WeChat Pay if you have customers in China or nearby regions.
Customers rely on digital technology for more than communication. As companies meet the needs of their customers, APMs will continue to be accessible and grow. Credit cards still dominate the market, but as online shopping takes more market share in the retail world, APMs will, too.
The world is becoming increasingly digital, and how shoppers prefer to pay for their items is no exception. As online shopping gains even more control in the retail world, so will APMs. Merchants must use the right payment partners to offer these APMs. Nexio has many different APMs for meeting those demands and provides an iframe that enables you to add those methods to your shopping cart functionality. Explore those options now, so you will be able to offer the correct ways to the specific regions.
For more information about Nexio’s alternative payment methods, contact: 866-806-3946 or sales@nexiohub.com