In this day and age, alternative payment methods or APMs have become a necessity for both consumers looking to make purchases or merchants striving to grow and expand their respective businesses. After all, beyond giving people more options, they also aid in reducing the payment frictions and localizations in various markets. As a result, they get more time to do what they enjoy, like playing at websites casino.netbet.fi.
Traditionally, most buyers make payments with the use of cash or credit cards. However, as products and services continue to progress, the demand for flexible shopping experiences grows. Simply put, shoppers want to have more choices, especially when buying online. And this is where APM comes into play.
Alternative payment method: What is it?
As its name suggests, an alternative payment method refers to any payment that isn’t credit cards issued by financial institutions like banks or cash. Some examples of these include but aren’t necessarily limited to prepaid cards, mobile payments, bank transfers, and eWallets.
Why is it important?
The importance of APMs lies in their ability to tap into the current trend of convenience and choice for consumers. These days, goods and solutions alone aren’t enough to reel in prospective customers. Instead, merchants must offer their preferred method of payment or risk losing them to the competition. User experience plays a role in the buyers’ decision, after all. And by presenting them with multiple options, you’re much more likely to encourage a sale than you otherwise would have.
While credit cards are as widely used today as they were in the past, an increasing number of people have become more comfortable using alternative payment methods instead because they feel that it’s a safer method of payment. For example, both Paypal and Cryptocurrency payments have recently become more and more popular on many platforms. You’ll often see a choice to use Paypal on most sites you visit.
Examples of APM
Bank transfers, money orders, and prepaid cards are some of the most common examples of APM. However, both Apple Pay and Google have also become major players in alternative payment methods since they cater to one of the largest markets: mobile users. This is a consumer base not to be ignored when you consider that most online shoppers rely primarily on their smartphones and tablets to make purchases.
Another excellent example of an APM is the eWallet. Their widespread use has brought about several brands eager to bring their versions out, like Alipay, PayPal, and Yandex, to name a few. Each one has its unique offering and is appealing depending on the market. For example, many people in China prefer to use Alipay. On the other hand, Qiwi is widely popular in countries like Russia and those located primarily in Central Asia.
As an increasing number of people disregard traditional means of payment like cash and credit cards, the future of alternative payment methods only gets brighter. It’s only a matter of time until APMs are no longer considered alternatives but rather the preferred methods of purchasing items and services.