IPP Europe

Alternate Payment Methods – Accepting payments beyond credit/debit cards.

The digital age has revolutionized the way consumers pay for goods and services. No longer are businesses confined to traditional payment methods such as credit or debit cards. There are now various alternative payment methods (APMs) that businesses can employ to enhance convenience, security, and global reach. Below are some examples

  • Digital Wallets: Apps like PayPal, Apple Pay, and Google Wallet allow consumers to store payment information and make transactions directly from their smartphones.

  • Cryptocurrencies: Digital currencies like Bitcoin, Ethereum, and others offer a decentralized alternative to traditional financial systems.

  • Bank Transfers: Direct bank transfers, often facilitated by services like TransferWise or Trustly, can reduce processing fees and increase transaction speed.

  • Mobile Payments: Services like M-Pesa in Kenya allow users to deposit, withdraw, and transfer money using a mobile device.

  • Buy Now, Pay Later (BNPL): Services like Afterpay or Klarna allow consumers to purchase goods immediately and pay over a set period.

Now, let’s delve deeper into the key benefits of these alternative payment methods:

Increased Conversion Rates

Offering a variety of payment options can significantly improve the customer’s checkout experience, thus boosting conversion rates. According to a report by Worldpay, almost 40% of online shoppers would abandon their cart if their preferred payment method was not available.

Expanding Global Reach

Different regions around the world have different preferred methods of payment. By accommodating these preferences, businesses can expand their market reach. For example, in the Netherlands, the iDeal system is the most used payment method, while in China, Alipay and WeChat Pay are dominant.

Enhanced Security

Many APMs come with advanced security features, including encryption and tokenization, that can help mitigate fraud and protect customer data.

Below is a quick comparison of some popular alternative payment methods:

Payment MethodProsCons
Digital WalletsQuick and convenient; often come with built-in security features.Not universally accepted; reliant on internet access.
CryptocurrenciesDecentralized; potential for anonymity; low transaction fees.Price volatility; regulatory uncertainties.
Bank TransfersFast; relatively low processing fees.Requires bank account; potential for delays.
Mobile PaymentsAccessible even without a bank account; simple to use.Mostly popular in specific regions; dependent on mobile network.
BNPL ServicesImmediate access to goods; installment payment.Can encourage overspending; missed payments can result in hefty fees.

Implementing these alternative payment methods requires careful planning and the selection of the right payment platform for your business.

Here are some steps to take:

  • Identify Your Customer Base: Understand the preferred payment methods of your target demographic. Cater to their preferences and local payment culture.

  • Assess Security Features: Ensure the APM offers robust security features to protect your business and your customers’ data.

  • Consider Costs: Evaluate the cost of integrating and maintaining the APM, including transaction fees and any additional charges.

  • Check Compatibility: Make sure the payment method is compatible with your existing systems and processes.


Alternative payment methods offer opportunities for businesses to increase conversion rates, expand globally, and enhance security. By understanding your customers and carefully assessing your options, you can implement the right APMs for your business and stay ahead in the ever-evolving digital marketplace.

It’s clear that the future of payments is not restricted to plastic cards; it’s diverse, digital, and global. Be sure to take advantage of these trends and drive your business growth.