June 15, 2018
Alternative Payment Methods (APMs) are gaining favor around the world; according to the Global Payments Report 2017 by WorldPay, are set to overtake credit cards as the most popular online payment method by 2021. The multi-billion-dollar vacation rentals industry is potentially seeing the most impact of APMs, given that rental platforms rely on the revenue generated by transactions made by travelers from all over the world.
APMs have proven to be simpler to use and offer faster settlement and transfer of funds between parties. And since they’re integrated with the consumer’s online banking, there is greater trust by consumers using the product.
For example, if a traveler from Germany goes online to book a cabin in the Adirondacks, he might choose to pay using his favorite German APM. The traveler needs to know that his transaction will be secure, and the vacation homeowner in the United States needs to be assured that no matter how their guest chooses to pay, the transaction will be approved and funds will be disbursed to him in his desired currency.
In a digitally distracted era, where time is a precious commodity, anything you can do to make things easier for your consumers is going to earn their business. Don’t worry if you’ve gotten attached to traditional payment methods. Accepting payments such as debit and credit cards and ACH will never go away, as they’re still a very dominant force in global payment trends. However, as more merchants and vacation rental platforms start to offer APMs as a payment method for buyers who want to pay as such, APMs will logically take up more share of transaction processing volume (TPV).