Alternative Payment Methods Why You Can’t Neglect Them When Expanding Your Business Worldwide

The advanced era of FinTech has facilitated the growth of online payments. However, which is revert has directed the enhancement of eCommerce and banking experiences for customers. It’s an amazing system. But with all tech advancements. Some frequent buyers of this tech predict a lightning-speed service and a combination of options. Their anticipations are similar to fuel transformation. In our area of assuring payments and transactions. We’ve noticed the advancement of alternative payment methods in Europe (Albania, Malta, Cyprus, Netherlands, Italy, etc.) and increasing anticipation. That they should be delivered alongside traditional choices for eCommerce stores and online banking. Loss by businesses or financial organizations to identify the favor of APMs can be harmful. To neglect APMs completely is very risky certainly. 

What do you mean by alternative payment methods?

You will find the answer to this question is in the name itself – alternative payment methods are any kind of payment. However, that isn’t established on standard payment choices such as cash or the use of primary brand credit or debit cards. Regardless of the ‘alternative’ label in the heading. Because APMs have become the entire mainstream. Moreover, enabling people to make quicker and more effortless online payments and also transactions among family and friends.

The increment of alternative payment methods has been nearly assessing with the development of the internet. Because banking and shopping experiences moved from brick-and-mortar functions of contact to desktop browsing experiences. And now, intrinsically, things are going online. With global smartphone requests increasing. Then the total no. of international online payments and transactions being performing with mobile devices and apps. So, they will shortly record more than 50% of all eCommerce payments. The entire process was predicting to extend steadily up until 2020 but was hurting up by COVID-19 pandemic lockdowns. However, moving more people online via desktops and mobile devices to resume shopping, banking, and pursuing entertainment. So how do people prefer APMs?

The most prevalent alternative payment methods

• Bank Transfers

What can be considered a natural advancement for ordinary banking consumers to take their first measures to use APMs? So, bank transfers enable customers to make fast payments instantly from their bank accounts. This is usually conducted via online payment methods, like iDEAL, which functions through a buyer’s mobile banking app. Because this is one of the leading eCommerce payment modes in the Netherlands, for example.

• Buy Now, Pay Later (BNPL)

Payments made via installments have been here for decades. But BNPL has achieved a big growth in favor, taking benefit of the modification of the online payments landscape to integrate mobile app payments. Klarna is famous as an international leader in the payment industry. Also, delivering interest-free reimbursements to buyers in a preference of installments. Most significantly, BNPL Buy Now Pay Later is shown as an alternative payment method. So, that can be associated with people without a credit history prevalent and popular among Gen-Z and Millennials.

There has been increasing inspection of this structure. And this has been frequently provoking, driving some customers to deficit up debt due to a deficiency of credit checks. And also signing up to multiple BNPL option providers. Currently, there have been measures taken to initiate the procedure of presenting regulation for the industry and control the wave of debt participated by some customers.

• Digital Wallets (e-wallets)

Extremely popular among mobile device users (smartphones, tablets, smartwatches), digital wallets enable buyers to add money to their accounts. And also preserve their credit/debit card or bank data in a mobile app to make transactions in-store without the requirement to prefer a physical card. Digital wallets use the in-built powers of mobile devices to perform contactless payments via QR codes, Bluetooth, WIFI, and magnetic restrictions at a point-of-sale device. Payments then conduct through payment processors, high-risk payment gateways, acquirers and credit card networks, and banks to conduct a payment.

• Mobile Payment Services

Mobile payment services have come to become popular in European pockets. In fact, 68% of European buyers have preferred mobile payment service and digital wallet services in 2017. Also, mobile payment and digital wallet services are proportionally new in the payment industry. So, they are predicting to soon occur as a European most preferred solution. These are basically known as pre-paid wallets that are on the choice to customers that frequently do not acquire a bank account. And signing up for payment services at mobile shops with payments performed via SMS messages and PIN codes through existent mobile networks. 

Although existing bank consumers can prefer this payment method also. So, it has verified specifically famous in many countries where many people still have either no bank account or restricted access to standard payment services. There is also a more common issue of rural societies being far away from their nearby bank and restricted mobile internet signals to conduct online payments and transactions. 

Why are alternative payment methods increasing in popularity?

It’s all down to the rapid speed of tech inventions that make our lives effortless. And the globe is driving online. There is an anticipation that the same online experiences that have been traditional on desktop computers for decades should now be standard on mobile devices. If not good- and should also be simple to sign up for and use.

Younger generations are also driving the relocation from traditional cash and cred/debit card usage. However, being more flexible to modification and invention. But it’s not just the comfort of APMs that directs younger people away from standard payment methods. But also financial concerns and deficiency of credit history, quitting them incompetent to acquire credit cards, for example. This is an era that caught the financial problem of 2008 and the consequences it had on their families. Also resulting in an intelligible version of standard financial organizations and limits of credit could result in debt.

There is also the factor of financial insertion to consider. Alternative payment methods open up limits of finance and online shopping incidents to those that are on the perimeters of society. We have cited that in areas where mobile internet connections are inadequate or non-existent and banking services may be hard to reach for rural societies. So, the offers of payment for products and services (even via eCommerce merchants) are still feasible with mobile wallets, for instance.

Are alternative payment methods secure?

Every payment method, even, every online buying experience, is as protected as it can be, depending on various factors. Initially, every online payment procedure must be supporting by upgraded fraud prevention solutions. Similarly, inner company safety procedures must also be an essential factor. And every user must assure they perform their role in managing good online hygiene by owning operating systems, antivirus software, and apps up to date to have the upgraded security features in the setup. A slip-up in any of these measures can result in terrible and expensive effects.

Factors that make alternative payment methods safe

But let’s glance at alternative payment methods, which are frequently conducted without the requirement to enter credit or debit card details or even prefer a physical card which can be removed by fraudsters or details settled. This alone creates APMs more secure, as credit card fraud is the most productive type of cybercrime for fraudsters who treasure robbed accounts. But most significantly, your personally recognizable details (PII) are assessing with them.

Performing contactless mobile payments using digital wallets is also moderately safe. Because the procedure is protected by tokenization (encryption) and the networks and organizations the payments go through usually have developed fraud systems in the establishment. Of course, physical robbing of a smartphone is always a conceivable risk. And which can also direct pretentious fraudsters to perform unapproved buys. Luckily, the entire amount per transaction is usually specified to a specific amount. Similarly, mobile wallets functioned on SIM card use, again, physical stealing of devices can be a problem.

With APMs that perform direct payments with the help of mobile apps. So, there is always the risk of scammers being able to prefer social engineering attacks. And that can instantly target mobile device customers via their email accounts. This is already occurring, and we find that many smartphone users, and even eCommerce merchants and financial organizations. Then take it for acknowledgment that mobile platforms can become an effective target for cyber fraud.

Drive the alternative payment method experience as safe as possible

In our type of business, we understand that online payments and transactions can conduct conveniently and enhance comprehensive customer experiences. This is why we are so curious about alternative payment methods. But we also understand that to assure both consumers and businesses don’t renounce out to fraudsters, developed fraud detection, and deterrence are essential to assuring all online transactions stay secure. This is why it is important to understand your user performing an online payment or transaction.

By preferring machine learning standards to power research that researches evident biometrics and online fingerprints. So, it is possible to know how each user is acting during their use of service and also specify their device configurations. Doing this intrinsically, peacefully and in real-time enables genuine fraudsters to be caught and averted from thriving in their fraud tries while assuring a smooth online payment experience for genuine buyers.

Alternative payment methods are here to remain and will resume to expand and be famous. This is why assuring the best feasible customer experience is in the best curiosity of any eCommerce merchant or financial organization trading with online payments and transactions. To underrate the favor of APMs is certainly dangerous and can automatically result in a cut in the vogue of businesses that select not to deliver them. Are you ready to bear that risk?

Conclusion

If you want to know more about how cutting-edge fraud solutions can compete and protect alternative payment methods. Contact WebPays now and we will reveal to you how you can get secure payment processing for your business. Furthermore, you will get the best high-risk merchant account solution with alternative payment methods to expand your online business globally. Do not need to worry about your business’s payment requirements. WebPays allows you to deliver all the alternative payment methods in Europe (Albania, Malta, Cyprus, Netherlands, Italy, etc.) to your customers and reduce cart abandonment.