March 28, 2018
When was the last time you pulled out a wad of cash to pay for dinner or a stack of dollar bills to cover your rent? If you’re like the rest of the developed world, chances are, it’s been a while. The transition to a cashless society has been a long time in the making, but there are other interesting developments afoot, leading to a rise in Alternative Payment Methods (APMs).
With 96% of Americans, 95% of Brits, 93% of Germans, and 72% of South Koreans shopping online, credit cards still claim the lion’s share of all transactions.
However, according to the Worldpay Global Payment Report 2017, over half of all online transactions will be made using alternative payment methods by 2021. If you’re thinking in terms of Apple Pay, Google Pay, and PayPal only, it’s time to widen your perspective – there are hundreds of APMs emerging around the world.
How do you know which ones are right for your business? Let’s start with the basics.
As the name suggests, an Alternative Payment Method is a way of paying for goods or services outside of the mainstream credit card schemes, like Visa, Mastercard, or American Express. As technology allows consumers to leverage online banking, manage digital wallets, or even use smartphones with biometrics to pay, APMs are increasing in popularity.