Why your business should consider different payment options

Alternative payment methods refer to any means of paying for products or services other than cash or major credit card systems (Visa, MasterCard, American Express). Prepaid cards, mobile payments, e-wallets, bank transfers, and 'buy now - pay later' rapid financing are all examples of this.

As financial technology businesses and digital giants have entered the payments ecosystem, alternative payment methods have grown in popularity, giving customers faster and more convenient options to make purchases and transfer money to friends and family.

Alternative payment methods are estimated to account for roughly 55% of all worldwide e-commerce transactions this year.

What are the alternative payment options?
Alternative payment methods (APMs) are means of purchasing products and services other than the above-mentioned standard modes of payment. Today, there are a rising number of APMs, but Payments Journal divides them into three categories:

Bank transfers

Online banking is used to conduct these sorts of transactions. Consumers prefer bank transfers over credit cards for a variety of reasons, including ease and the avoidance of debt.

2Wallet-based solutions

Digital wallets may be used to pay at physical stores or on e-commerce platforms. Apple Pay and Google Pay are the most well-known instances, in which a user deposits money into a wallet that functions as a debit card.

Cash-in

A credit card substitute, cash-in payment solutions function as prepaid cards. Cash-in APMs are more accessible to many customers, particularly young individuals because they do not require a credit check.

I already offer my customers’ a payment option, why should I consider the alternatives?
Customers appreciate the ease and variety that alternative payment options give. They let individuals pay in the method that best fits them, thus it's critical for you to be able to provide a diverse selection of payment alternatives at the checkout point as a merchant. This will provide you with an advantage over your competition, which may only accept traditional payment methods.

Companies that want to facilitate seamless cross-border payments may benefit from alternative payment options. While typical credit cards will suffice in many nations, you may need to provide alternative payment options to attract worldwide clients, particularly those in developing countries.

Regardless of whether you currently provide a payment option for your clients, there are a number of benefits that other APMs may provide, all of which can help your company grow. These are three advantages:

Relevance

Today's consumers are primarily young and technologically aware. This is especially true for Generation Z (16-24 years old), who have extensive exposure to alternative payment methods such as mobile payments.

Efficient

The checkout procedure has a significant influence on the consumer experience. Traditional payment methods are typically lengthy and difficult, with purchasers being sent to a third-party site to enter their credit card information with each transaction.

The purpose of APMs is to make the checkout process more straightforward, user-friendly, and secure.

Easy access

APMs are more accessible than credit cards since they don't require extensive application processes. If you want to attract younger customers who may not have credit, to begin with, this is critical.

If you want to reach into foreign markets, APMs can help you make your business more accessible to a larger audience.

The future of APMs
Alternative payment methods have grown in popularity, and many experts predict they will continue to affect the future of global e-commerce for years to come.

Although credit cards are still widely used across the world, notably in the United Kingdom, alternative payment methods are becoming significantly more popular than traditional payment methods in many nations.

Given how different each and every small and medium-sized firm is, it's difficult to provide clear recommendations. Overall, APMs can improve customer satisfaction, which can spread to other areas of the organisation.

It might be challenging to choose the best payment method for your consumers because your company may serve a wide range of demographics. We are aware of the difficulties that company owners encounter. With this in mind, we're committed to offering crucial remote accounting services to your company so you can focus on growing your business while we handle your tax obligations with precision and efficiency.

For more information on how we can help your business, please contact Persona Finance at [enquiries@personafinance.co.uk].