In 2020, North America with Europe following it closely was the top region by the number of non-cash transactions (184.5 and 170.4 billion transactions respectively, to be exact). In comparison, these numbers were 130.3 and 98.6 billion for the same regions some seven years ago. No argument here: the world is steadily moving towards becoming cashless. And that’s why non-cash and alternative payment methods are coming into play.
What are non-cash payment methods?
Non-cash payments, as it says right there in the name, are the ones made with alternative to cash payment methods. The most popular non-cash payments are carried out with credit and debit cards. However, with the advances in financial technologies, new cutting-edge payment methods like cryptocurrencies, e-wallets, ad mobile payment apps are starting to lead the way.
In fact, 49% of all transactions in Europe are made with alternative payment methods, and even more in Asia-Pacific.
And interestingly enough, studies have shown that non-cash payments are popular not only among the younger and thus, more tech-savvy generations. An older generation is realizing the convenience and therefore, switch to non-cash methods, too.
Why choose alternative payment methods?
We understand a popular among business owners concern. They’re reluctant to offer alternative payment methods (APMs) other than credit and debit cards for security and development cost reasons. And while these might be valid reasons, there are both solutions to prevent any undesired issues associated with their implementation and multiple benefits.
Increase your conversion rate.
Offering a variety of payment methods including alternative ones allows your business a chance to appeal to a wider audience.
It takes time and lots of resources to bring a client to your website and encourage him to make a purchase. And at this stage, it’s important to allow him to pay the way he’s used to. Otherwise, you’ll lose a client, and he, all warmed up by your marketing efforts, will wander off to your competitor’s site to buy what he intended.
So, not to see your customers walk out on you, make sure your site is friends with APMs.
Expand your online presence.
Often, merchants can’t get into the market and figure that the audience is just not interested in the product. However, this isn’t always the case. People are used to comfort and convenience along their customer journey. And a wide range of alternative payments is what ensures they get both.
Besides, giving the people a choice of both international and local payment methods allows you to cater to any market. In other words, APMs are way to become internationally relevant.
Beat the competition.
When several e-commerce merchants are selling similar products, it’s important to offer clients their preferred payment methods to beat the competition. They’re often faster and more convenient for a generation of customers used to having everything at their fingertips. Offering only the basics will deter the clients while giving them a choice will give you the edge over your competitors.
Boost customer loyalty.
Hackers are more tech-savvy now than ever. So, it’s not surprising that people are reluctant to enter their credit card data when paying online. And it’s in the merchant’s best interest to offer other ways to pay. Let clients know that you know and understand their security concerns and are willing to fine-tune their experience.
Simplify the checkout process.
It might sound crazy but stay with me on this one. These days, filling out a credit card payment form may be overwhelming for a customer. Surprising? Yes! But there’s no way around it. And since there are simpler payment solutions, consider adding them to your site to keep such one-click-to-pay-for-it-all clients.
Which alternative payment methods to choose?
To answer this question, you need to know your audience and the markets you cater to.
Previously, we’ve covered what payment methods are popular in different regions. So, be sure to check our in-depth guides here:
- Most popular payment methods in South America
- The most popular payment methods in Asia by countries
- The most popular payment methods in Europe by countries
- The 8 most popular payment methods for e-commerce
Over to you
Society is going non-cash, and so should your business. Otherwise, it is doomed to failure.
Payments that were once perceived as intimidating are now ubiquitous. And it’s absolutely imperative for you to keep up with the latest trends to see your business bloom and expand.
Consider embracing the technology and implementing it before your competitors do – and enjoy the flow of incoming loyal customers.