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Most customers aren't wondering how they'll pay. They already know.
They expect the option to use their digital wallet, complete a quick bank transfer, split the cost, or simply tap their phone. Whether you're selling subscriptions, shoes, or concert tickets, rigid checkout flows push people away.
This guide explores why alternative payment methods (APMs) now matter as much as pricing and UX—and how to decide which ones make sense for your business.
Why it's no longer enough to accept just cards
Adding more ways to pay isn't just about convenience. It's a business decision with measurable impact:
|
Outcome |
What happens when you add APMs |
|
Conversion rate improves |
Customers finish more checkouts when friction is reduced |
|
Global reach expands |
Local payment tools build trust with buyers in new markets |
|
Fraud risks shift |
Wallets and tokenised flows often reduce chargebacks |
|
Checkout gets faster |
Fewer fields to fill. No redirection. Mobile-ready |
|
Costs can drop |
Some APMs carry lower transaction or FX fees |
Offering the right mix of APMs often results in a more inclusive, more scalable business.
Understanding the APM categories
The term "alternative" covers a lot. What they have in common is simple: they don't rely on the traditional card rails. Here's a closer look at how they break down.
|
Category |
Use case |
Examples |
|
Digital wallets |
Everyday mobile payments |
Apple Pay, PayPal, Google Pay, Alipay |
|
Buy Now, Pay Later (BNPL) |
Spreading costs, higher AOV |
Klarna, Afterpay, Kredivo |
|
Mobile payments |
Tap or scan to pay |
DANA, GCash, Touch'n Go |
|
Bank-based methods |
Transfers and real-time payments |
SEPA, iDEAL, Pix |
|
Vouchers & OTC |
Prepaid or cash-based digital flows |
paysafecard, Konbini (Japan) |
|
Crypto |
Niche, but growing among younger or cross-border users |
Bitcoin, Ethereum, USDC |
Each method serves a distinct purpose. The goal isn't to support all of them—it's to support the right ones.
Regional guide: What works where
Not all APMs translate across borders. Some are regionally dominant. Others are essential for gaining a foothold in new markets.
|
Region |
Popular APMs |
|
Southeast Asia |
GrabPay, GCash, DANA, Touch'n Go, ShopeePay |
|
China |
Alipay, WeChat Pay |
|
Europe |
iDEAL (NL), Bancontact (BE), SEPA transfers |
|
LATAM |
Pix (BR), Mercado Pago (MX, CL, PE), Boleto |
|
Middle East |
mada (KSA), STC Pay |
|
North America |
PayPal, Apple Pay, BNPL providers like Affirm |
Understanding regional habits helps you reduce checkout drop-offs and improve trust.
Online vs in-store: Choosing the right payment experience
Different environments demand different tools. A wallet tap might work online, but not in a retail setting without the right terminal.
|
Environment |
Best-fFit APM types |
Why it works |
|
Desktop checkout |
Digital wallets, BNPL, bank transfers |
No app switching, long-form UX allowed |
|
Mobile app |
Tap-to-pay, Scan-to-link |
Fast, single-tap flow preferred |
|
Retail counter |
User-presented codes, NFC wallets |
Speed and minimal contact |
|
Self-service kiosk |
Order code scanning |
Customers initiate and confirm payment on their own |
|
Smart TV or console |
Scan-to-link QR codes |
Buyers scan with their phone to confirm identity |
Choose based on where the transaction starts—and how much effort the customer is willing to make.
Use case spotlight: Subscriptions and recurring payments
If you offer memberships, refills, or recurring access, your billing model needs more than a credit card form. Here's what to look for:
Recommended APMs:
● Auto Debit
● Subscription Payments
● Wallets with recurring authorisation support
Key features:
● One-time setup with tokenised credentials
● Smart retry logic to recover failed charges
● Clear opt-out options for compliance and trust
● Support for promotional periods or trial billing
You can also integrate change and cancellation flows to give customers more control—improving satisfaction and reducing churn.
Measuring APM performance
What you offer is important. But how you track success matters just as much.
|
Metric |
What It Tells You |
|
Payment success rate |
Reliability of each method |
|
APM adoption rate |
Preference split among buyers |
|
Cart abandonment |
Whether payment variety solves friction |
|
Retry recovery rate |
How well you recover failed attempts |
|
Refund or dispute volume |
Customer satisfaction with the experience |
Use these metrics to refine which methods you keep—and which you phase out.
Building a smarter payment strategy
Adding APMs isn't about offering everything. It's about being selective, responsive, and realistic. Here's a simple framework to follow:
- Audit your current flow - Where do users drop off? Which markets are underperforming?
- Identify gaps - Do you serve mobile-first buyers? Do you support pay-later behaviour?
- Choose your APM stack - Focus on 2–3 methods with the highest ROI by region or product type.
- Simplify your integration - Use a single platform or processor that supports multiple APMs via one API.
- Train your teams - Ensure internal teams can support new flows and explain them to users.
- Measure and adapt - Look at data, customer feedback, and retry patterns. Optimise quarterly.
Future Trends to Watch
The way people pay will continue to shift. Some changes will be technical. Others will be behavioural.
Here's what to keep an eye on:
- Biometric authentication (face, fingerprint) replacing passwords
- In-app embedded payments in ride-sharing, marketplaces, or social platforms
- Localised wallets gaining more global acceptance (e.g., Kakao Pay outside Korea)
- Real-time fraud detection using AI-based behavioural modelling
- Stablecoins becoming viable for regulated cross-border commerce
Staying informed isn't optional—it's how payment strategies stay competitive.
Final takeaway
APMs are not a bonus feature. They're the foundation for modern commerce.
Customers don't think in categories. They just want a fast, secure way to pay—wherever they are, however they choose.
The businesses that recognise that—and adapt—are the ones that grow.
