The global economy is gradually moving towards a cashless model of payment for goods and services. According to Juniper Research and Capgemini studies, e-commerce and alternative payment methods are expected to grow in popularity due to the simplicity, convenience, and speed of their transaction options. It is forecasted that the number of mobile wallets users will reach 4.8 billion by 2025, which is more than half of the world’s population. In 2020, it was only 2.8 billion.
Debit and credit cards are still at the peak of popularity among online payment methods. However, they are moderately losing their dominance and are expected to account for less than 40% of all payments in e-commerce by 2024.
Undoubtedly, the pandemic has affected this trend significantly. Due to the COVID-19 crisis, companies have been forced to implement alternative payment methods rapidly in order to remain competitive and maintain their influence in the market.
What do alternative payment methods stand for?
Alternative Payment Methods (AMPs) are mechanisms of paying for goods and services not via traditional debit and credit bank cards or cash. Alternative payment methods are the system of the future. Consumers are satisfied when the payment process is quick, simple, and hassle-free. Therefore, such APMs as e-wallets, QR codes, mobile applications, prepaid cards, cryptocurrency, and others are promptly spreading and becoming generally accepted. In addition, more and more people prefer mobile phones for online shopping rather than computers or laptops, as it used to be in the past.
Why should companies offer their customers alternative payment methods?
Undoubtedly, you can continue to accept payment for goods or services on your website through traditional ways only, but be aware that proportion of customers who prefers bank car payment decreases. In the modern world, numerous companies are ready to provide any payment methods for the sake of sales, and it is unlikely that potential buyers will adapt to you and choose inconvenient for them payment methods. They are more likely to switch to your competitors, where the purchasing process becomes invisible.
When a client wants and is ready to order a product, there is nothing worse for him than seeing the inability to select a convenient method on the payment page. At that moment, he will hesitate whether to complete the purchase on your website. Most likely he will postpone it, and may even opt for your rivals. Convincing a customer to pay for your product or service is not effortless these days, and the more choice of payment methods a client has, the more probable the success of the transaction is. APMs drive revenue growth and reduce cart abandonment rate significantly. Further, we would like to provide you with a couple of more valuable reasons to implement alternative payment methods in your business.
Firstly, AMPs permit businesses to achieve a high level of automation. They allow optimizing document processing, invoicing, and other manual operations.
Secondly, AMPs are a considerable opportunity for your organization to expand its horizons, enter new markets, and gain prominence there. APMs enable you to offer payment methods that are predominant in the local market and accepted in that region.
Beyond that, cybersecurity is an essential topic nowadays. Thus, various APMs offer an extra layer of protection, such as facial recognition, fingerprint detection, or password requests. APMs can help to crucially reduce the risk, and increase customer confidence in a secure checkout on your website.
We live in a fast-paced world. Accepting alternative payments is no longer a bonus, but a necessity. They contribute to your sales growth, enable you to meet the fickle requirements and expectations of clients, reduce fraudulent transactions, and build trust in your brand. The wider the potential customer’s variety of payment methods, the higher the possibility of a purchase. APMs give consumers the freedom to control how they wish to pay. Hence, if the buyer is satisfied with the quality and the process of purchasing the product or service, he will remember your brand and return to your website again.
Looking for the best international payment processing provider?
UniversePAY keeps abreast of current e-commerce trends. We constantly work on adding new payment methods to our platform to make them even more convenient and faster for your business. Currently UniversePAY offers the integration of over 50 APMs in 3 regions of the world: Europe, Asia, and Africa.