Alternative payment methods can be defined as any kind of payment that is not made using cash or a credit card, which was issued by a reputable bank. Alternative payment methods have become an essential requirement for merchants and retailers who are trying to expand and grow their business. Apart from offering more options to customers, alternative online payment methods reduce the payment friction.
Until a few years ago, most customers used their credit cards to make online payments. However, the advancements and innovations in the field of technology and the growing popularity of online shopping resulted in the demand for a versatile and better internet shopping experience. This is where APM (Alternative Payment Methods) comes into play.
In other words, most online shoppers want multiple options when it comes to paying for products and services when they are shopping online. A recent study conducted by PPRO Group indicated that several customers in the UK decided to abandon online retail transactions just because of limited payment options.
The above-statement clearly indicates that retailers and ecommerce businesses should allow customers to make payments how they want. If not, then online shoppers might leave your website or store and look for other viable options.
Businesses who want to grow should understand that enabling credit card and debit card payments are not just enough these days. This is what prompted several businesses to include alternative payment systems to keep up with the growing and changing demands of online shoppers.
Everything You Should Know About Alternative Payment Methods
As mentioned earlier, alternative payment methods can be categorized as the type of payments that doesn’t involve a credit card or cash. Some of the common examples of alternative payment methods are prepaid cards, bank transfers, eWallets, and mobile payments.
The Significance of Alternative online payment methods
Alternative payment methods have become very important for ecommerce businesses today. This is mainly because alternative payment methods offer more choice and convenience to online shoppers. As an ecommerce business, you will probably want to offer multiple payment options to customers at the online checkout.
There is no denying the fact that alternative payment methods are prevalent across territories and sectors. So, as an ecommerce business, you must always try to offer the popular and latest choice to customers when it comes to making payments online. If you fail to do that, then internet users may get hesitant to buy products and services from your business.
Ecommerce businesses that have alternative payment methods at their online checkout will be able to entice online shoppers who are after a payment method that is familiar to them. This will help you to build trust among customers and it might even help you gain an edge over competitors.
The introduction of alternative payment methods will surely benefit companies that are operating internationally. Businesses that are planning to expand their operations into new markets should consider local payment trends.
Examples Of APM
As mentioned earlier, there are different types of alternative payment methods. If you are new to the world of APM, then do not worry because we have got you covered.
Online banking can be defined as any payment that is made from a bank account without entering your credit card details.
Digital wallets are undoubtedly one of the most common types of alternative payment methods. Digital wallets can be described as prepaid accounts, where users can store money for future use. Some of the popular examples of digital wallets are Neteller, PayPal, and Paysafe.
Bank transfers or wire transfer is actually a direct money transfer from the bank of the customer to the bank account of the business.
As the name implies, mobile payments are payments made through smartphones. Some of the most popular types of mobile payments are Google Pay, Apple Pay, and Samsung Pay.
Cryptocurrencies are actually a relatively new addition to alternative payment methods. There are more than 2,000 types of cryptocurrencies and Bitcoin is one among them.
Why Choose Alternative Online Payment Methods
There are several businesses who are still a bit reluctant to include alternate payment methods due to development cost and security reasons. If you are one among them, you need to understand that there are effective solutions to prevent all issues that are related with the implementation of an alternative online payment platform. In addition to that, alternative payment methods also offer a wide range of benefits to businesses.
Helps Businesses Boost Online Conversion Rate
Including alternative online payment options along with other standard payment options offers businesses an opportunity to appeal to a broader audience. It will surely take effort, time, and resources to bring an online shopper to your website.
If he or she likes your product and proceeds to buy it, then you will want them to choose the payment option they need. If there is not an alternative payment option, then the customer may leave the cart, which is not good for any business.
New Opportunities For Businesses
Offering customers both local and international paying options will allow you to cater to different markets. In simple words, alternative payment methods offer a chance for your business to become relevant internationally. So, if you have not yet included APM in your business, it is best to make the options available to customers as fast as possible.
Gain Customer Trust
It is evident that hackers have become a lot more tech-savvy these days and they have started trying different techniques to steal user information. This is one of the major reasons why several online shoppers are hesitant to enter credit card details when making online payments.
Alternative online payment methods offer great security to customers by allowing them to make payments without entering credit card information. We will be able to see more and more customers opting for alternative online payment methods instead of traditional payment methods.
AbzerCommerce can supercharge your business and help you meet the requirements of thousands of customers who wish not to use credit cards. Ecommerce businesses that offer trust payment options to customers will not just help ease the buying process, but ensures higher security.
If your requirements are not addressed in the above please do tell us more about your project. It is likely that we will be able to address your needs.