Alternative Payment Methods: a must or an advantage?
Modern technologies are steadily driving the world economy towards the cashless model. Сashless payments are becoming a must for market competitiveness. Otherwise, online merchants can lose most of their customers. Although debit and credit cards still stand at the head of popular tools for online shopping, alternative payment methods, such as electronic or mobile wallets, prepaid vouchers, cryptocurrency, and bank transfers are starting to outperform. In 2019, they accounted for up to 50% of the turnover of all eCommerce in the world. And researchers predict the continued growth in volumes.
Alternative Payment Methods Leading Regions
- Asia-Pacific region — 58%
- Europe, the Middle East, and Africa — 49%
Accepting alternative payments
Customers tend to use alternative methods to pay for purchases online quite often. For instance, alternative payments make 49% of total annual volume in Europe, the Middle East, and Africa and about 58% in the Asia-Pacific region. That is if merchants do not offer their clients alternative payment solutions, they might lose from 20% to 30% of sales. Supporting alternative payment methods is an essential advantage for those who plan to expand business abroad.
The tricky thing about alternative payment methods is that they tend to be local. So, it would be just perfect if you offer your clients their preferred ones. Here’s the list of the most used payment methods in the world.
|Asia Pacific||North America||Europe||Latin America|
|Bank transfer||American Express||Online banking||Elo|
|Alipay||Interact Debit||Klarna||American Express|
|WeChat Pay||Interac Online Payments||Giropay||SafetyPay|
|Visa||Interac in-app||SEPA Direct Debit||OXXO|
|Mastercard||7 Eleven||QIWI||Astropay Card|
|eWallets||Western Union||Digital wallets||Discover|
Choosing suitable payment methods for a business
Supporting alternative payment methods is an opportunity to grow your sales and gain more customers. So, it would help if you were conscientious about choosing the right ones to provide the smoothest online shopping experience for your customers. Here are the steps you can take right now.
Step 1. Define, if your business requires it
Here are the market segments requiring alternative payment methods the most – check if your business is among them.
- Forex, binary options
- Gambling, betting
- SMM agencies
- Digital goods & Video games
- Game marketplaces
- Dating websites
- Freelancers, web-design studios, IT teams
- Professional service
- Info business, training
If the answer is “yes”, move to the next step.
Step 2. Consider these criteria, while choosing what methods to support
To decide what payment methods suit your business best, answer the following questions:
- Is this method as affordable as beneficial?
- Will the clients’ data remain secure?
- Is it easily accessible to your target market?
- What about the contract term?
- Is it easy to use?
- Does it have proper feedback and online reviews?
Payment solutions — both traditional and alternative — represent a bridge between online-business and consumers. And it’s all about the ease of use, functionality, and benefits for both sellers and buyers. So, alternative payment methods are rather an advantage for your store or website, than a must. Accepting payments in locally preferred methods might help you grow your sales.
We at PayCore.io are on the outlook for modern eCommerce trends — our payment gateway allows merchants to accept payment in the most sought-after methods. If you are about to boost your local sales and expand abroad, we’ll be excited to help you optimise your business opportunities and start accepting alternative payment methods.