What is a payment method? and Alternative Payment Methods?
A payment method is simply the term used for how a consumer makes a purchase. Payment methods have evolved to support different consumer and business needs and are now more inclusive. You don’t even need a bank account to make an online purchase anymore. Every market has its own preferred methods, and demographics within that have their specific gotos. Figuring out which payment methods will be best for your online business can be tricky. With this in mind, we have put together a little guide which explains some of the most popular methods on the market and where they are most commonly used.
Alternative Payment Methods or APMs are ways to pay online that do not involve a credit or debit card. As online payments become more popular, more ways in which to pay have been created. This is because not everyone has access to cards and other want flexibility and or anonymity. Payments made by an APM are increasing, and merchants need to make sure that they are offering the right payment methods for the markets they sell in.
An alternative payment method (aka APM) referees to any payment that is made without a credit card. This includes open banking, crypto, voucher payments, eWallets, carrier billing and many more.
Different payment methods are popular in different countries.
- Debit cards.
- Credit cards.
- Mobile payments.
- Electronic bank transfers.
There are many advantages to accepting alternative payment methods as not everyone has a credit card and you will reach a wider market. The downside of accepting another payment method is that you may have to connect to another payment service provider. However, with payment orchestration you can connect easily to PSPs and acquirers so you do not have to build the connections yourself.
Alternative methods of payment are means of making a payment other than cash. Alternative methods of payment (AMOP) include payments made using a credit or debit card, loyalty program points, cryptocurrencies like bitcoin or virtual wallets like Google Pay or Apple Pay. Another popular AMOP is Venmo.
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