Alternative Payment Methods (APMs)
Alternative payment methods (APMs) are payment options other than credit and debit cards that allow customers to make payments for goods or services purchased online. For online cross-border businesses, APMs can be a useful option to provide customers with more convenient and localized payment options, reducing the barriers to entry for international markets.
Here are some popular APMs that online cross-border businesses can consider:
- E-wallets: E-wallets such as PayPal, Skrill, and Alipay are popular APMs that allow customers to securely store their payment information and make payments online without having to enter their credit card details every time. These APMs also support multiple currencies and can provide added security and fraud protection.
- Bank transfers: Bank transfers are a common payment method for international transactions, and some APMs, such as TransferWise and Payoneer, offer low-cost international bank transfers for businesses and consumers.
- Digital currencies: Digital currencies such as Bitcoin, Ethereum, and Litecoin offer a decentralized payment option that can be used across borders without the need for a bank or payment processor. While digital currencies are still relatively new and may not be widely accepted, they can provide a unique option for tech-savvy customers.
- Mobile payments: Mobile payments, such as Apple Pay and Google Wallet, are becoming increasingly popular and allow customers to make payments using their mobile devices.
- Direct debit: Direct debit allows customers to authorize automatic payments from their bank account, providing a convenient and recurring payment option for subscriptions and recurring purchases.