Although introducing Alternative Payment Methods (APMs) to your business may sound costly and time-consuming, these innovative payment methods are on their way to becoming global economic drivers. Are you curious to learn more about APMs? Read on to discover their benefits and how you can add them to your business.
What are Alternative Payment Methods (APMs)?
APMs are payment methods that don’t involve cash or credit cards. Although they’re alternative ways of paying for products and services, they’ve pretty much become the norm in the day-to-day lives of people around the world. Most APMs accept international customers, while others only serve people living in one particular country or region.
Alternative payment methods are changing how people shop both in-store and online. In a few years, the phrase ‘cash is king’ won’t hold as much power as it did at the beginning of the century.
Types of APMs
Bank transfers are one of the most used alternative payment methods out there. Almost all major banks now offer apps that customers can use to make online payments regardless of their location.
Digital wallets or e-wallets such as PayPal need no introduction. They can send and receive money, store credit cards and offer merchant accounts with detailed reporting and impressive features.
Prepaid cards are also considered alternative payment methods. They are perfect for customers who dislike using credit cards due to privacy concerns.
Mobile money transfers are widely used as well. These payments don’t necessarily require an internet connection but they can only be made using a smartphone, tablet, or any other mobile device.
Last but certainly not least, cryptocurrencies such as Bitcoin have become a go-to payment method for many consumers. Accepting cryptocurrency payments will put your business in the spotlight and help you get those extra coins.
Benefits of APMs
Both merchants and consumers have a lot to gain from APMs. First and foremost, these payment methods are affordable on both ends. As a merchant, you’ll be able to avoid costly credit card processing fees and your customers will also pay fewer transaction fees.
APMs also increase sales by attracting customers. Think of the millions of consumers who don’t like using credit cards or cash while shopping. By giving them alternative ways of paying, they’ll stick around for a long time and even recommend your store to their friends and family members.
Flexibility is another key benefit of APMs. These payment methods can be easily integrated with mobile POS terminals and POS systems at a brick-and-mortar store. If you have an E-commerce business, APMs can work with an online payment gateway too to help you receive funds.
Online payment processing is a tricky thing that can leave doors open for hackers and scammers. Fortunately for everyone, adding APMs to a business provides an extra layer of protection that’s difficult to breach. For example, banking apps and e-wallets have security features such as face and fingerprint ID, location tracking, and two-factor authentication.
Which APMs are Right for my Business?
Businesses have different needs, so knowing your target audience goes a long way in ensuring you get the right APM. For instance, US consumers often use PayPal. But if your customers reside in South East Asia, you can go for Alipay or Boost
Next, evaluate prices. APMs are supposed to save you money, therefore go for the affordable options available and make sure their features match your needs.
Functionality is also essential in this process. If you’re running an E-commerce business, register for APMs that offer online payment processing and if you have a mobile business, pick digital wallets and mobile money transfers.
You can further tell if an APM is good by the type of security they offer. Ensure the ones you add are PCI compliant and boast several security and fraud detection features.
How to Add APMs to my Business?
- To add an APM to your business, begin by researching the most popular ones in your region.
- Pick one with satisfactory features and prices then visit their official website and request a quote.
- If they accept your request, read the contract thoroughly and ensure you’re happy with the terms.
- Register your merchant account by providing all the required information.
- Integrate your APM merchant account with your gateway for online payments and POS system for in-store payments.
- Notify your customers about this new change and begin accepting payments.
Alternative Payment Methods allow people to enjoy faster checkouts. Your customers don’t need to always have cash or credit cards sitting in their wallets. With the right APM, they can make a purchase straight from their mobile phones and into your merchant account at the blink of an eye.