The past ten years has seen a boom in the variety of ways that we can pay for goods and services. Instead of relying on credit cards and cash, Alternative Payment Methods (APMs) are becoming increasingly popular.
An APM is classified as a way of paying for items which doesn’t involve cash or major card schemes (Visa, Mastercard, Amex). The following are examples of APMs.
Consumers are looking for a frictionless payment process. Nearly half of all abandoned carts occur because consumers find a Merchant’s checkout process too arduous.
APMs provide consumers with convenience and choice. Enabling people to pay in ways which suit them is an important aspect of E-commerce. The more choices Merchants offer, the more of an edge they can have against their competitors.
APMs are also beneficial for companies looking to implement a seamless cross-border payment system. APMs such as AliPay give Merchants the ability to accept payments from a much wider range of countries than if they were just accepting standard credit/debit cards. This global payment system also allows travelling consumers to pay with confidence overseas, as they can continue to use the payment methods they are used to.
According to a Statista Study, in 2022, APMs are expected to account for nearly 55% of global E-commerce transactions. Consumers are looking for flexibility, and APMs can provide that.
Cryptocurrencies are believed to be the “next big thing” in payments, with major card schemes looking at implementing crypto wallets. Will we be able to pay for our groceries with crypto as effortlessly as we are able to pay via our phones? Only time will tell.
To offer Merchants APMs, and to take your E-commerce business to the next level, contact Cardstream to learn how we can help.
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