Alternative payment methods (APM) have become very popular in the recent years. They offer some opportunities that more traditional transaction ways, such as cash and card payments, can’t ensure. These alternatives provide quick and inexpensive transactions that users can complete easily and securely. 

The principle of operation of alternative payment methods

APMs work in different ways, depending on the technology they are based on. Nevertheless, most of these methods saw the light thanks to the intensive development of mobile commerce. Some are in greater demand, but each has advantages and deserves a closer look.

• Mobile payments. They are the most famous alternative tool for transactions, which every smartphone owner uses. There are mobile apps that enable payment, such as Apple Pay and its analogues. They link your card and phone, so you can pay for products and services via terminal, QR code, etc., by holding your device near them.
• Е-wallets. These seem similar to the previous method but have their differences. E-wallets also must  be linked with your bank account, but they can be used not only via smartphones and don’t require NFC. When buying online, you just choose a card you want to pay with. Still, digital wallets may hold coupons, tickets, etc., like real wallets.
• Virtual cards. Actually, you keep them in your e-wallet. They can be a digital copy of your physical credit or debit card, issued by your local bank office, or you may have a solely digital one. You should add virtual cards to Google or Apple Pay to make transactions.
• Direct debit payments. They usually go in the form of a monthly subscription. For example, you register an account on Netflix and agree that there will be a fixed month-to-month withdrawal from your bank account.
• Carrier billing. It’s a type of mobile payment as well, but you pay with your mobile bill. Subsequently, you use your mobile number, not card details, to transact.
• Bank transfers. It’s a way to transfer money from you to the company’s bank account. You should indicate the recipient’s full name, bank account number, routing number, and IBAN and SWIFT/BIC code if you want to make an international payment.
• Payment instalments. With them, you can buy a product and pay for it in parts afterwards.
• Prepaid vouchers. These are cards or codes, such as gift ones, with a fixed amount of money assigned to them. You can buy them in a store or from a service provider and use them when it’s convenient.

APMs are not so complicated to understand, and you don’t need specific knowledge to use them. Some can be helpful, and some are less, but businesses should keep in mind all of them to offer customers an alternative payment in due time. Smoothness and easy access via smartphone  could promptly become a competitive advantage.