Alternative payment solutions
As a business owner, you are well aware that consumers have different preferences. Now these preferences apply not only to products and services, but also to payment methods. Not all of your customers will pay with credit cards, preferring other options.
Consumers’ payment preferences vary depending on their geographical location, age, the specific product or service they purchase, and so on.
Understanding these preferences and providing the right solutions to meet them is what ensures long-term growth and expansion of the business.
What are alternative payment solutions
Alternative methods other than credit card payments are known as alternative payment solutions.
Credit cards are not the only way to make payments online. There are several hundred payment methods in e-commerce. Offering alternative payment solutions is the most effective way to enter domestic markets around the world.
Alternative payment solutions have a number of advantages over traditional options:
- Support for transactions in different currencies
- saving time
- High security, thanks to the implemented technology of sending SMS with a confirmation code
- Ease of registration
- Low commission
- Ease of output to the map
- The ability to send money abroad and receive from abroad
Types of alternative payment solutions
Customers can make payments in real time using the Internet banking function.
Mobile phones and tablets are rapidly replacing desktop computers. Customers prefer to make quick payments by specifying only the phone number. Mobile wallets are also becoming more attractive with the advent of specialized applications such as Apple Pay and Samsung Pay.
Convenient e-wallets are one of the most popular and fastest growing alternative payment solutions. PayPal is a very well-known and widely used electronic wallet. Yandex Money, Qiwi Wallet, WebMoney e-wallets are popular in Russia and other CIS countries.
Prepayment and post-payment
When using prepayment, payment is made by card or voucher, which the buyers have already paid.
The post-payment option allows the buyer to make purchases online and then pay for them at a bank branch.
Payment via SMS
In this case, you need to send a message to a short number with a certain text (or even without it). The money will be debited from your mobile phone account.
Card-based payment methods
The most famous cards are Visa and Mastercard. But there are also many local card schemes specific to a particular country or region. These alternative payment cards can be co-branded with international card brands for wider acceptance. Notable examples are RuPay in India and Troy in Turkey.
Cash-based payment methods
Cash payment methods allow customers who do not have a credit card or bank account to make purchases online. During the online checkout, they choose the cash payment option. This creates a way to link an online purchase to a cash payment, for example, a unique identification number or a printed barcode. The buyer takes it with him to the store participating in the program and pays. The store sends its payment to the online seller along with a unique identifier. The seller then sends the buyer’s order.
A pass-through e-wallet is a type of digital wallet that does not hold the balance on its own, but transfers the transaction to another payment instrument. Examples of end-to-end e-wallets are ApplePay or Google Play. Apple Pay simply transfers the transaction to the customer’s credit card or bank account. Customers do not upload money to Apple Pay on their own.
Why choose alternative payment solutions from Wellcoinex
Access to foreign markets and global expansion is possible with the help of alternative payment solutions that are more international than payment by bank cards.
Wellcoinexoffers alternative payment solutions for the UK and Europe. Our alternative payment solutions are designed for customers who cannot make payments using bank cards.
We understand the challenges of the global market and will help you expand your reach.
Contact Wellcoinex today to find out all about alternative payment solutions for your business.
We work in the UK, Russia, Germany, France, Italy, Spain, Ukraine, Poland, Romania, the Netherlands, Belgium, Greece, Sweden, Austria, Switzerland, Norway, Ireland.
How to know which alternative payment methods to offer
Which payment method to choose depends on the country. Dutch consumers use the iDEAL bank transfer application in almost 60% of transactions.
However, in neighboring Belgium, the market shares of all bank transfer applications combined is only 19%.
The type of preferred alternative payment method may also vary in different markets. In the Philippines, most buyers use a digital payment method.
But 65% of Filipinos do not have a bank account. For them, cash is king. If you don’t support local cash payment methods, they won’t make purchases from you.
PPRO is a fintech company that is globalizing payment platforms for businesses so that they can offer more choices at the checkout and boost cross-border sales.
Based on your goals, we will help you determine which alternative payment methods should be offered in any market.
Alternative payment method FAQ
Which business needs alternative payment methods?
Any business that hopes to succeed in any market, whether it’s cross-border sales or opening a local branch, should accept alternative payments.
Failure to offer a payment method that consumers know and trust can lead to the fact that the number of abandoned baskets can reach 44%. To reduce the number of abandoned baskets, sellers should offer preferred alternative payment methods for each country.
What are the sellers’ fees when using alternative payment methods?
Sellers’ commissions when using alternative payment methods vary. But they are usually significantly lower than the fees charged when using the main payment methods.
Are alternative payment methods safe?
Yes, if you integrate them well. There are too many alternative payment methods to generalize on topics such as security, risks, or regulatory compliance.
But PPRO can help you choose payment methods for your target market based on both their relevance and aspects such as security and regulatory compliance.
We can also help you add additional layers of security, for example, to prevent refund fraud and improve fraud detection.
How to integrate alternative payment methods?
You can integrate each alternative payment method yourself. To do this, it is necessary to conclude an individual contract.
Then you will have to integrate, test and confirm the payment method yourself. This includes conducting regulatory compliance checks, legal checks, and so on. Or you can work with a payment specialist like PPRO.
In PPRO, we have created an infrastructure that will allow you to quickly launch multiple payment methods and avoid all contractual and operational difficulties along the way.
You benefit from a single and simple integration. We provide ongoing support and save you from having to worry about legal or contractual details.
What is the difference between local, alternative, digital, online payment methods?
These categories often overlap with each other. But it’s not exactly the same thing.
The meaning of the term “alternative payment method” depends on the context. It can simply mean payment methods other than cards.
But many people understand it as cryptocurrencies, such as Bitcoin or Ethereum.
Local payment methods” are any payment methods other than global standards (Visa, Mastercard, etc.) that are popular or dominate a particular market.
For example, in China, the share of AliPay in the online payment market is more than 50%, which makes it the preferred payment method in the local market.
A digital payment method, for example, an electronic wallet, can be used both on the Internet and in a store.
Online payment methods, on the other hand, as the name suggests, can only be used online.