What are alternative payment methods?
With more shoppers ditching the highstreet and rather choosing to shop online from the comfort of their sofa, the e-commerce industry has had to grow and adapt its services in order to meet the ever-changing consumer trends and demand. This has forced the introduction of alternative payment methods (APMs) which streamline customer checkout and offer shoppers services that would not be possible in physical stores.
An alternative payment method (APM) is an alternative way of completing a transaction that avoids the use of more traditional payments such as entering credit card details or handing over cash. This can include payments via mobile devices, e-wallets, online bank transfers, direct debits, pre-paid cards, and “buy now, pay later” purchases.
Some of the most popular AMP’s that shoppers and merchants are familiar with are:
- Apple Pay
- Amazon Pay
Why should merchants provide alternative methods of payment?
Global markets – Opportunity for businesses to expand into global markets, making their site more accessible in different markets and supporting global transactions.
Mobile friendly – With mobile commerce on the rise, an increasing number of customers are seeking to make quick and easy transactions whilst on the go. AMP’s are particularly useful in helping to further streamline mobile commerce as they replace the lengthy entering of credit card details with just a few speedy clicks.
Provide more choice – Offering shoppers more options at checkout, and therefore providing a more personalised experience.
Friction-free checkout – A smooth checkout process with minimal action required from the customer in order to complete their purchase.
Less security risks – Using a secure payment gateway restricts hackers from intercepting sensitive information. First-rate security measures help keep this personal data confidential.
Reduce abandoned cart rates – Offer a quicker and more convenient checkout process which can streamline user experience as well as encouraging the completion of transactions. Research has shown that 21% of US customers have abandoned carts due to a lengthy or complicated checkout process, and 17% didn’t trust the site with their credit card information.
Why do shoppers want alternative payment options?
Simple, and less time-consuming – Trying to hunt down your credit card and then finding the patience to sit and enter in all your details to an online form can take its toll. AMP’s help alleviate this stress and enable shoppers to complete transactions without the hassle and in minimal clicks, making the process much easier and quicker.
Familiarity – Shoppers are able to pay by their personal preference which might differ geographically. This makes the payment experience more habitual and easy for them.
Manage spending – Payment providers often have additional features to help you track and manage your budgets. It is possible to to set up notifications that alert you when you are nearing your limit.
Pay in installments – Some AMPs, for example Klarna, allow shoppers to break down a payment into smaller installments that they pay over a period of time. They adopt a “buy now, pay later” scheme meaning shoppers often find themselves buying items they wouldn’t have done otherwise, as they can now afford to do so.
What is the future of online payments?
Offering alternative payment options is a key driver in providing a successful eCommerce buying experience. Building consumer trust in the marketplace is more crucial than ever, especially when shifts in buying habits and consumer behaviour is changing so rapidly. As expectations continue to grow in omnichannel eCommerce it is down to merchants to respond quickly.
At 5874, we can seamlessly integrate alternative payment methods into your current site set up, giving your customers the payment choices they require and improving their purchasing experience.
Why wait? Get in touch by calling 01213695874 or emailing firstname.lastname@example.org