Alternative Payment Methods

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Alternative Payment Methods Attract Your Customers Towards Your Online Store

Alternative payment methods (sometimes called local payment methods or APMs) refer to products such as eWallets, vouchers, and pre-paid cards. It can be regarded as a local payment method if it isn't cash or a credit card.

What is important is that alternative payment methods are rapidly expanding and they're changing the payments landscape. 57% of German buyers want to prefer PayPal when purchasing something online, while 60% of Dutch customers prefer to use local bank transfer iDEAL.

Whether you're marketing products in a shop or handling an eCommerce store, it is important that you have various payment methods to deliver the best customer experience.

Table of content

What are alternative payment methods?

1. Digital wallets

Sometimes understood as e-wallets, digital wallets allow consumers to furnish their accounts with funds for future deals. Online payments can be conducted online or in person. Some of the most famous alternative payment methods in Europe (Albania, Malta, Cyprus, Netherlands, Italy, etc.) are digital wallets such as PayPal and Alipay.

2. Mobile payments

Mobile alternative payment methods enable buyers to fill their smartphone apps with funds. Google Pay and Apple Pay are two of the most famous apps and enable buyers to conduct online transactions and QR code and SMS transactions.

3. Bank transfers

A bank transfer is where the funds are forwarded directly from the buyer's bank account to the merchant's bank account. iDEAL and Sofort are experts in bank transfers and are broadly preferred in Germany, Austria, and the Netherlands.

4. Direct debit

Direct debits are famous for subscription-based businesses. Buyers provide businesses permission to take a specific amount of funds at a predetermined time for products or services that are delivered.

5. Buy now, pay later

Buy now, pay later enable consumers to buy products and slow payment or distribute the price over a few months. The most prevalent platforms do not assess any interest, which conducts them very famous with buyers who don't prefer credit cards.

6. Cryptocurrencies

71% of British consumers say they will never utilize cryptocurrencies because of instability. However, cryptocurrencies have immensely expanded in vogue and the more durable currencies such as Bitcoin are frequently used to buy products.

7. Local credit cards

Most businesses across the world provide debit and prepaid cards that are only received in one place. These credit card methods are famous because they can also support local demands. In Belgium, Bancontact far overtakes basically Visa, Mastercard, and Maestro credit card networks.

Alternative payment methods across the globe

1. Alternative payment methods in the United Kingdom

Credit cards are still the most prevalent way to spend for purchases recorded for 52.5% of online transactions in 2018. While the use of digital wallets recorded 29% of online payments, this is predicted to rise to 32% by 2023.

Associated with direct debits, bank transfers, and other payments, alternative payment methods will surpass cash and card by 2023. Apple Pay, Google Pay, and Paypal are conducting this growth in market share.

Alternative payment methods in Europe

In Europe, digital wallets, perfect payment systems, and debit cards fund 47% of transactions in-store. For online purchases, this number arrives at 59%. Like the UK, the way buyers pay for products continues to grow.

Although 53% of European merchants select to take cards, 31% are happier when taking alternative payment methods such as a mobile wallet. 8.5% of merchants would even prefer it if buyers spent in cryptocurrency.

Alternative payment methods in the rest of the globe

Alternative payment methods are even more famous across the globe. Banking infrastructure is less evolved in Africa which has assured mobile transactions have constructed much faster inroads into new markets. In China, mobile payments recorded 92% of in-store and e-commerce transactions at the end of 2018.

In North and South America, credit card payments are still the most prevalent mode of payment. Yet, digital wallets are rising in favor. Apple Pay, Google Pay and buy now, pay later payment forms are driving transformations in customer behavior.

Why are APMs essential?

APMs are essential as they wipe out the current customer tendency for selection and comfort. As a merchant, you want to be capable to deliver a wide collection of payment choices at your online checkout platform. APMs are dominant across sectors and regions and as a merchant, you require to be able to deliver the latest in payment technology as your deficiency of choice may hamper customers.

When a customer is encountered numerous eCommerce stores delivering the same products or services. The user experience evolves a significantly vital aspect of their decision-making procedure. Hence, having APMs at your checkout will attract buyers who are exploring the kinds of online payment they understand and trust and give you an advantage over your rivals.

Businesses that function globally will also profit from the introduction of alternative payments into their platform. Understanding local preferences will enable merchants to pre-empt their buyer's need for specific APMs.

What are the advantages of alternative payment methods?

1. More global shoppers

The main objective of WebPays is to make shopping online even more easy and quick. So we preferred QR code technology which allowed merchants to receive global eWallet payments.

Similarly, your checkout experience requires you to be as flawless as possible. If you have barriers during this procedure you will demoralize and estrange your buyers.

A substantial part of these buyers will want to spend via eWallets, mobile wallets, and buy now, pay later options.

Having various local payment methods will assure you attract as many global shoppers as probable.

2. Improved sales

Research indicates that about 80% of shopping carts get quit by buyers. There are multiple contributing aspects comprising a deficiency of guest checkouts, high delivery prices, and unwanted form fields.

Facilitating all these barriers to pay is important to maintaining your desertion rate low. About 7% of deals go unfinished due to the lack of payment modes.

Whether you have an eCommerce store or brick-and-mortar shop you will definitely have some global buyers. Even if you don't sell products or services in foreign countries then you may have buyers who are exploring the UK or staying here temporarily.

Clearing all of your barriers to pay will assure that none of your buyers are precluded from spending on your products. This will form a flawless shopping experience that will increase your conversion rate.

3. A more safe business

Research in 2015 discovered that 14.9% of buyers quit shopping because they had worries about payment security.

Paying via a local payment method is not intrinsically securer as preferring a credit card. Yet, some consumers have an insight that it is.

Normally, when preferring a digital wallet or buy now, pay later option you are only required to provide your username and password. This can be more unassailable and safer for some buyers.

Some mobile phone users also opt for face ID and fingerprint security systems to decrease the risk that someone operates their phone and dishonestly operates their digital wallets.

Every consumer has their own explanations for selecting to pay in the mode they do. Whichever payment method they choose, it's important that you adapt it.

4. Improved trust

When buyers make buys at brick-and-mortar or online businesses, they will have to trust the merchant, otherwise, they won't give their bank details.

If consumers are delivered with payment methods they prefer all the time, they will feel relaxed and follow through with an investment.

For some buyers, high-risk payment methods are more dedicated than major banking organizations. Trust plays such a vital role in purchasing, so you require to do everything you can to make buyers feel relaxed.

5. A rapid checkout

Buyers, primarily those purchasing something online can be very diplomatic. If there are too many details to provide in during checkout or delivery isn't quick or adequate, buyers won't conduct purchases.

One method to accelerate the checkout procedure is to prefer local payment methods. Quite often, someone preferring an e-wallet or phone payment has to conduct far more infrequent activities than someone preferring a credit or debit card.

The research found that checkouts average approximately 14 form fields. Their study found that most websites can decrease this by 20-60.5%.

With around 17% of online buyers quitting their carts because of complex checkouts, facilitating payment procedures can have a transformative impact on your conversion volumes.

6. A better shopper's experience

Some years ago, if you didn't have sufficient money in your account to conduct a costly purchase, your only choices were to prefer a standard payment such as a credit card or debit card with a bounced check.

Local and alternative payment methods are delivering even more choices for people to make investments, even if they don't have sufficient funds in their accounts.

By delivering a payment method like Klarna, shoppers can easily conduct a buy by just clicking a few options. Generally, these methods don't ask for interest which has seen them burst into fame in just a rare year.

Around 10 million British buyers stated they would ignore a business if this didn't include any buy now, pay later options.

More youthful buyers have revealed execration to credit cards. If you are focusing on this market it is important that you deliver all the payment choices they want.

Which alternative payment methods are good for my eCommerce business?

The correct local payment method for your eCommerce business will all rely on who your buyer is. Think about your country, your ethnicity, and who you're focusing on.

If you have multiple region-based customers you will require various payment choices than if you're focusing on a millennial client base.

Deliver buyers with various payment modes and you will make a strong trust, inspire purchases and maximize transformations.

Boost your functionalities with Alternative Payment Methods

In this blog, we have described the most famous payment modes in Europe. Alternative Payment Methods are vital if you are searching for getting access to a new market or delivering more payment options to your current buyers. This implies that a payment service provider (PSP) with an international acquiring network and in-depth learning of your local target customers and their desired payment methods can assist to meet changing customer manners. Our reliable WebPays team of experts is functioning in every region of the world and can assist merchants around different industries in steering the restricted payment geography for global development. We function with businesses of all sizes to allow them to take payments online, in-store, and in-app.

Moreover, our payment gateway solutions are accessible with an easy and fast payment gateway integration. And it also comprises a superfluity of other payment characteristics, such as global acquiring, Alternative Payment Methods, an in-house eWallet, credit card issuing, fraud and risk management, and performance elaboration. Get in touch with our payment gateway professionals on how you can split into new areas and integrate dominant Alternative Payment Methods into your payment processing system.

How to integrate alternative payment methods into my business's payment gateway solution?

There are multiple ways to pay for online dealings. And integrating them all into your checkout experience can be a lengthy and time-consuming method.

What you require to accomplish, will all rely on which certain alternative payment method you are inquisitive about. Yet, you can positively integrate a payment gateway platform that includes multiple payment systems with numerous payment method options.

Our delivered payment gateway platform is easy to use and effortless to integrate. So, get a online merchant account with us and you will be capable to take more than 25 of the most popular payment modes in a moment.

If you like to explore how your online business can receive more local payment methods by our alternative payment methods in Europe (Albania, Malta, Cyprus, Netherlands, Italy, etc.). Then contact us at WebPays.com now.

FAQs

1. What are alternative payment methods?

Alternative payment methods are described as a method of paying for products or services online which are not constructed via cash or major credit card systems(Visa, Discover, MasterCard, American Express). This comprises prepaid cards, mobile payments, eWallets, bank transfers, and 'buy now, pay later' immediate funding.

Alternative payment methods have expanded in favor as financial technology businesses and tech supporters have joined the payments ecosystem, delivering buyers with quicker and more comfortable methods to conduct purchases and transfer funds to friends and family. During this year, alternative payment methods are predicted to account for almost 56% of international eCommerce payments.

2. How alternative payment methods are transforming the shape of today's eCommerce?

The impact of mobile banking spread the base for alternative payment methods expansion. It also diluted the idea of a credit card-based community. Alternative payment methods are predicted to crowd out payment giants such as Visa and MasterCard.

In 2019, Visa and Mastercard were liable for 23% of international eCommerce. By 2021 that digit will reduce to the point of 14.5%. This is caused by merchants comprehending that alternative payment methods are the track to a wider global audience. Not likely in the UK and US, the two nations that laboriously rely on debit and credit cards, many planets market like alternative methods of transactions.

iDEAL, Venom, Klarna, and PayPal have already strained the ranks of Visa in traditional Europe. As of now, there are around 350 Alternative Payment Methods globally that are rising in vogue. The bulk of PSPs (payment system providers) and acquiring banks have already identified new tendencies and counted alternative payment methods to their payment method choices. As eCommerce earns even more exposure in the entire world, so will alternative payment methods.

3. What is the future of alternative payment methods?

The industry of online payment processing has rapidly developed, and many professionals consider that alternative payment methods will deliver great transformation to the future of the international eCommerce business for years to arrive. In the US, for example, mobile payment users exceed bank account holders, whereas, in Europe, iDEAL is by far the most famous payment method. Even though credit cards are yet popular across the world, specifically in the United Kingdom, numerous nations are herding to alternative payment methods in far more significant numbers than standard payment methods.

4. Why should you deliver alternative payment methods to global customers?

If you are still on the barrier about whether or not to deliver alternative payment methods, move forward with us. We understand your safety and development price issues. It might appear that both integration and supervision can scoop up a spot in your funding.

They will also assist you in breaking into new industries.

If you can't appear to split into new and profitable markets, don't move to a belief that the audience isn't curious about your services or products. You may easily not be delivering that level of convenience and amenity along the way that they're habituated to.

If your client base is habitual to paying with specific payment methods and can't able to get it on the list of available payment choices on your website's checkout page. Then they're most probably to quit and buy from someone that delivers what they predict.

Thus, sometimes all it takes to dominate a new market is a pair of appropriate payment methods.