Customers increasingly expect to pay in the way that is fastest and most familiar to them. That expectation shows up online, in-store, and in-app. It is driven by the growth of digital payments and the convenience of paying from a phone.
If your checkout only supports traditional options, you risk losing customers at the moment of purchase, especially in new markets or on mobile.
Common alternative payment methods (APMs) to support
Alternative payment methods vary by region and channel, but most fall into a few core categories.
Digital and mobile wallets
Wallets store payment credentials securely and allow customers to check out quickly online or tap to pay in person. Because wallets can reduce the number of steps at checkout, they are a practical way to improve conversion, particularly on small screens.
These are also a major driver of mobile payments, since customers can authenticate with biometrics and complete purchases without repeatedly entering card details.
Bank transfers and account-to-account payments
In many markets, customers prefer to pay directly from their bank account. These methods can be attractive for certain purchase types because they are familiar locally, they can be cost-effective, and they often reduce friction for customers who do not use credit cards.
Why alternative payment methods help you grow
Adding APMs is not just a feature upgrade. It is a growth lever that can improve reach, conversion, and customer trust.
Expand access to more customers
Not every customer uses the same payment rails. In some segments, card usage is limited, and in others, wallets and bank transfers are the default.
Supporting these methods helps you serve customers who would otherwise drop off.
Reduce cart abandonment at checkout
Checkout is where intent turns into revenue, and it is also where friction is most expensive.
Offering familiar payment options removes a common reason customers abandon carts, especially when they are paying on a phone and want a fast flow.
Build trust in new markets
When customers are unfamiliar with your brand, they may hesitate to share card details. Paying through a wallet or a trusted local method can feel safer, which can increase completion rates in international and cross-border scenarios.
Strengthen security while simplifying the experience
Many APMs use tokenization and device-based authentication, which can reduce exposure of sensitive data. Some bank transfer methods rely on customer-authorized push payments, which can lower certain dispute risks compared to card-based chargebacks.
How to implement APMs without adding operational complexity
Payment options only help if they are easy to manage across channels. The most effective approach is to work with a merchant services provider that supports multiple payment types through a unified setup. This ensures that your reporting, reconciliation, and customer support workflows stay consistent.
Look for a platform that can support digital payments across ecommerce and in-person checkout.
Ensure the mobile experience is optimized so mobile payments feel as fast as possible. Also, confirm that refunds, partial captures, and settlement reporting work cleanly across each payment method you enable.
Bottom line
Traditional payment methods still matter, but they no longer cover how customers prefer to pay.
Supporting alternative payment methods helps you meet customers where they are, reduce checkout friction, and build trust in new markets. With the right merchant services foundation, you can add digital payments and mobile payments in a way that supports growth without creating new operational headaches.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
