Understanding Alternative Payment Methods For Your Online Business

Alternative Payment Methods For Online Business

Since the pandemic struck the world, online shopping, otherwise known as e-commerce, has taken the world by storm.

In 2023 alone, global retail e-commerce sales reached a staggering $5,78 billion. In 2024, this number is projected to reach over $6,33 billion.

Given these sales figures, it’s natural that companies around the world are trying their hardest to cater to as many customer demographics as possible.

From building accessible, responsive, and user-friendly websites to creating a personalized shopping experience, personalization is central to welcoming new customers to your store. 

One of the best ways to make your customer’s shopping experience feel individualized and convenient is by offering various alternative payment options.

In this article, we’ll walk you through alternative payment methods and how to choose which ones to offer.

Defining Alternative Payment Methods

An alternative payment method is any way to pay for products or services that don’t involve physical cash or a bank card belonging to a recognizable major card scheme, such as Visa, Mastercard, or American Express.

As we mentioned, alternative payment methods, or APMs, have become increasingly widely used, offering businesses and consumers a much greater list of ways to send money or make transactions.

These payment options are often more practical, convenient, or affordable than traditional methods.

Types Of Alternative Payment Methods

Here is a short overview of alternative payment methods businesses offer their customers to personalize the shopping process and make it more convenient.

Top Article:  Why Men Shouldn’t Overlook Their Eye Health

Prepaid Cards

Prepaid cards are exactly what the name suggests – cards that a consumer can load with money to buy something.

Prepaid Cards

The customers can then spend the balance on the card, but no more, unless they top it up with additional funds. 

Unlike a debit card, a prepaid card isn’t directly linked to a customer’s specific bank account. Moreover, unlike a credit card, the consumer isn’t borrowing money; they’re simply spending money they already have. 

Cashless Payments

Depending on what product or service you’re selling and the pricing ranges of your business, you may have some potential customers who would be excited to buy your goods or services but simply can’t afford to due to your pricing and their financial circumstances.

This means you’re missing out on a demographic of customers who would support your business. 

The good news is that you can access these customers because of technological advancements! Consider enabling them to donate to you by sharing their idle bandwidth.

With donating solutions like CareBuzz, you can add this alternative payment method to your business’s financial plan.

CareBuzz’s innovative technology allows your business to receive cashless donations. Thanks to bandwidth sharing, your clients can contribute monetary donations at no cost.

Contrary to other donation platforms, CareBuzz is a free global platform connecting millions of people worldwide.

image

Digital Wallets

A digital wallet is an online wallet that involves information from a consumer’s credit card, debit card, coupons, and loyalty cards on your customer’s phone.

These digital wallets allow consumers to make in-store payments with their phones without carrying cash or physical credit cards.

Top Article:  4 Fantastic Ways to Boost Your Company’s Training Program

The most popular mobile wallets in 2024 include ones like Google Pay, Apple Pay, and Samsung Pay.

The digital wallets usually come already integrated into mobile devices; if not, users can download the wallet application from app stores. 

Cryptocurrency

Cryptocurrencies, like Bitcoin, are more than just a new form of money. They are transforming our financial landscape and the way we perceive the role of traditional intermediaries like banks. 

Large companies like Microsoft and Starbucks have already integrated cryptocurrency payments, allowing customers to buy goods or services with cryptocurrencies. 

Buy Now, Pay Later

Buy Now Pay Later is a type of short-term financing that lets customers do precisely what the name suggests – buy something right now and pay the total price later.

If your customers choose a “buy now, pay later” option, they can make purchases and pay for them over time, usually with no interest.

This alternative payment method is often used by companies selling expensive products or services, like cars, electronic gadgets, or more high-end clothing and apparel. However, as consumers’ buying power decreases, this payment method is becoming increasingly popular, even for purchases that aren’t considered expensive.

Choosing The Right Alternative Payment Method for Your Business

In today’s modern world, where digital commerce is at the forefront of business operations, deciding on the best payment method is vital for a successful purchase and, in return, profit.

Whichever you choose, one thing’s clear – alternative payment methods and a personalized shopping experience are critical in ensuring a steady profit flow.