The way we conduct transactions is rapidly evolving in today’s digital economy. Card payments have long been the standard for consumers and businesses. A Payments & Commerce Market Intelligence (PCMI) article, however, states the use of credit cards has decreased worldwide while non-card payments have significantly increased. The growth of alternative payment methods is reshaping the payments industry. As consumers constantly look for convenience, flexibility, and security, businesses must adapt to these changing preferences to maintain a competitive edge while enhancing customer experience.
Let’s face it. Gone are the days when whipping out a credit card was the only other option than cash at checkout. Alternative payment methods (APMs) let customers pay without relying on cash or major credit cards like Visa or Mastercard.
Why should you care about using APMs? For starters, they offer convenience that can’t be beaten. Your customers don’t have to rummage through their bags for cash or cards. They simply tap their phones on the terminal. It speeds up the checkout process and leaves clients feeling pretty good about their experience.
Convenience isn’t the only perk. Alternative payment methods have lower transaction fees compared to credit card processing fees, which can eat into your profits. Let’s not forget security. With features like encryption and tokenization, many of these APMs make transactions safer. In a world where online shopping is the norm and concerns about fraud are on the rise, having secure payment options is a game-changer.
Now, let’s talk about how these card payment alternatives can actually grow your business. You can expand your customer base by offering diverse payment options. Different people have diverse preferences; you’re more likely to attract a wider audience when you cater to their priorities.
And speaking of attracting customers, offering APMs can lead to increased sales. Customers are more likely to complete their purchases if they have flexible payment options available. Plus, embracing these alternatives gives you global reach. You can sell to customers around the world without worrying about currency conversion hassles or complicated payment processes.
Another significant benefit is seamless payment processing. Many APMs integrate smoothly with online stores and POS systems. This streamlined experience can enhance customer satisfaction and encourage repeat business.
Finally, let’s not overlook faster settlement times. Funds can be transferred quickly, sometimes instantly. This allows businesses to access their money sooner than they would with card payments. This improved cash flow can be crucial for managing day-to-day operations.
Card Payment Alternatives
The power of pay by bank
Pay by bank enables customers to make purchases directly from their bank accounts, eliminating the need for credit or debit cards. Security is enhanced as customers verify their identity through their banks’ secure platforms without sharing sensitive data. It typically has lower fees than card processing. The ease of use is another major plus. Customers can complete transactions quickly and conveniently, often with just a few taps on their mobile devices.
Examples: iDEAL in the Netherlands, Swish in Sweden, and Osko in Australia showcase how pay by bank provides a smooth payment experience.
Buy Now Pay Later (BNPL)
Buy Now Pay Later allows customers to make purchases immediately and defer payment to a later date in manageable installments. This model appeals to buyers who want to buy high-ticket items without the burden of upfront costs, making it easier to manage their budgets. Many BNPL providers offer interest-free repayment plans as long as installments are paid on time.
Examples: Klarna is the largest BNPL provider in the world by volume operating in multiple APAC markets. Humm and Afterpay are gaining traction in Australia and New Zealand.
The e-wallet revolution
An e-wallet or digital wallet lets users store their payment information securely and make transactions conveniently from their smartphones or other devices. E-wallets offer unparalleled convenience by allowing users to complete payments quickly without the hassle of carrying cash or cards. Transactions can be processed in seconds with just a tap or scan and features like biometric authentication and encryption protect financial information.
Examples: WeChat Pay and Alipay in China, and GoPay in Indonesia are leading e-wallet options in the APAC region. M-Pesa, STC Pay in Saudi Arabia, and Fawry are popular e-wallets in the MENA region, while Mercado Pago leads in Latin America.
Cryptocurrency changes the payments game
Cryptocurrency payments are digital alternatives that enable fast, secure, and borderless payments. Users can make purchases or transfer funds with cryptocurrencies like Bitcoin and Ethereum. The process is straightforward. Customers select cryptocurrency as their payment option at checkout. Their funds are transferred directly to the merchant’s wallet, often with instant conversion to fiat currency if desired.
Examples: Some of the most popular cryptocurrency payment platforms are BitPay, Coinbase Commerce, and Crypto.com.
Finding Your Perfect Match
Choosing the right card payment alternative is crucial for businesses looking to enhance their transaction processes and meet customer demands effectively. These key factors should be considered:
Modern transactions call for contemporary solutions. Adopting appropriate card alternative payment methods is crucial for businesses to stay competitive and meet changing consumer expectations. APMs increase revenue by lowering friction in the purchase process and improve customer experience by offering a variety of easy payment options. As demand for digital solutions grows, companies that fail to integrate these alternatives risk alienating customers who prefer flexible payment options. Enterprises can leverage platforms like Brankas Payments to seamlessly integrate various APMs into their processes.
A McKinsey article by Guillaume de Gantes, Hernan Gerson, and Kristine Romano states that 44% of the Philippine bankable population was unbanked in 2021. This exclusion from the formal financial system poses numerous challenges for individuals and communities. It hinders their ability to save, invest, and secure loans for various needs.
Imagine you are an avid online shopper. You frequently check multiple e-commerce websites to compare prices for the same product. It can be time-consuming to visit each site, find the product, and note the price. Here’s where screen scraping comes into play.
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