Alternative payment methods, or APMs, are the payment modes that do not include cash or major credit cards (Visa, Master Card and American Express). These payment methods have become very popular globally in the past decade. In this Macropay Review, we will dive into APMs and discuss their benefits for entrepreneurs. This article also includes some notes from Macropay’s Founder and CEO himself, Adam J Clarke.
The Payment Revolution
The payment ecosystem evolved significantly over the last few decades and is not confined only to banks. Fintech companies have disrupted this industry aggressively by introducing relevant and user-friendly payment methods.
Alternative payments cover a wide range of payment schemes. Some of them are:
- Mobile payments (ApplePay, PayPal, and many more)
- Pre-paid cards
- Buy now, pay later (a new and aggressively growing industry)
- Cryptocurrencies (still a niche)
How Customers Want to Pay
Providing the proper payment methods to your client base is crucial for entrepreneurs. The lack of the desired of payment method can urge customers to close the checkout page without making the purchase. This can be easily solved by integrating various payment methods to provide your customers with a pleasant checkout experience. Further highlighting the importance of APM integration for businesses, Macropay’s CEO & Founder Adam J Clarke notes that “alternative payment methods are critical. [It is] life or death customer experience.”
However, when choosing which APM to integrate into your payment gateway, it is important to note that these kinds of payment are very local. An APM might be widely in use in some European countries but might not have any presence in the Asian markets, and vice versa.
For example, iDEAL is the market-leading alternative payments platform in Netherland, but it has limited presence outside the country. Similarly, Przelewy24 in Poland and POLi in Australia and New Zealand.
PayPal and ApplePay are two widely used payment methods simply because of their global presence. ApplePay ended September 2020 with 507 million active users, while PayPal had 426 million active users in Q4 2021.
On the other side of the world, some of the Chinese platforms dwarf these global platforms’ numbers. WeChat, a super-app in China, had 1.17 billion monthly active users at the end of February 2021, whereas AliPay had 1.3 billion active users as of March 2020.
In terms of transaction volumes, alternative payment volumes are now competing with cash and credit card payments. Digital or mobile wallets clearly dominate the markets now with 44.5 percent of the share in 2020. This figure is expected to grow up to 51.7 percent by 2024.
Entrepreneurs and Adapting to their Markets
Entrepreneurs need to study their respective markets carefully before integrating any APMs. While offering multiple payment methods does not hurt, entrepreneurs can lose money. The integration cost of onboarding APMs that are not really beneficial for their clients would be unwise spending.
New entrepreneurs might also struggle with understanding their markets and the payment solutions that they need to offer. FinTech companies like Macropay provide consultation services on top of their premium gateway technology. By working with a partner, you can relieve yourself of the burden that comes with developing your own payment system.
Adam J Clarke of Macropay notes that “our technology grants you access to various alternative payment methods and open banking. You can manage all of your accounts under Macropay’s all-in-one dashboard.” With a powerful tool, your payment concerns as an entrepreneur are addressed and your customers are provided with a seamless payment experience.