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Alternative payment methods (APMs) are a game-changer for both shoppers and businesses, offering more options for everyone. APMs are payment options beyond standard credit card or cash transactions, including digital wallets, buy now pay later options, or bank transfers.
Offering APMs allows both physical and digital businesses to cater to a wider audience, accommodating those who prefer not to use credit cards or don’t have access to conventional banking services. Additionally, offering multiple payment options can boost conversion rates and attract a more global customer base—directly impacting your business’ bottom line. Offering APMs is a strategic move that can help you appeal to more customers, convert more shoppers, and stay ahead of evolving ecommerce practices.
Types of alternative payment methods
While there are a number of alternative payment methods available, we’ll focus on the most popular options. Many of these APMs are available with Squarespace Payments, with more APMs becoming available through the rest of the year.
Digital wallets
Digital wallets are the most popular type of alternative payment method. A digital wallet securely stores payment information, such as credit or debit card details, allowing users to complete purchases without the use of a physical card. Instead, users can make purchases with a tap or a scan, creating a convenient alternative to using cash or a physical card. Examples of popular digital wallets include Apple Pay (available with Squarespace Payments).
Buy now, pay later
A buy now, pay later (BNPL) solution allows customers to make a purchase and defer the payment over time, typically in installments. This is appealing to buyers purchasing more expensive items, as it makes the purchase more accessible by not requiring a full payment up front.
With a BNPL option, buyers have the flexibility of breaking down the total cost into manageable payments, often with little to no interest, allowing customers to better manage their finances. Examples of buy now, pay later solutions include Afterpay and Klarna (available through Squarespace Payments).
Bank transfers
Another alternative payment method is bank transfers. Bank transfers allow buyers to transfer money directly from their bank account to a business without a physical card. Bank transfers provide an alternative option for both individuals and businesses to safely send and receive funds globally. Examples of popular bank transfer options are ACH payments or SEPA.
How to use alternative payment methods in your business
Offering alternative payment methods is essential for catering to a diverse customer base and staying competitive. If you sell online, ensure that your store supports a variety of payment options, including digital wallets, mobile payments, and buy now pay later services. Make sure the available choices are visible during the checkout process to provide a seamless experience.
When selling in person, consider adopting point-of-sale (POS) systems that support alternative payment methods. This might involve investing in contactless payment technology, QR code payments, or accepting payments through mobile apps.
Choosing the right alternative payment methods for your business involves considering various factors.
Consider your target audience, as some alternative payment methods are only available in certain markets, while some are more preferred in others.
Consider where your primary audience is and do some research around which alternative payment methods are most popular for your customers.
Make sure that the APMs you’re considering are compatible with your store to provide a smooth transaction experience for both you and your customers.
How to offer Alternative Payment Methods with Squarespace Payments
Our native payment solution, Squarespace Payments, is compatible with a number of alternative payment options. In addition to accepting all major debit and credit cards, you can use Squarespace Payments to accept digital wallets like Apple Pay and BNPL options like Afterpay and Klarna. Additional payment methods will become available soon.
If you’re already onboarded to Squarespace Payments, visit your payments dashboard to enable alternative payment options. Toggle your preferred alternative payment options to on.
If you haven’t connected Squarespace Payments yet, visit your selling dashboard to connect Squarespace Payments. Onboarding only takes minutes, and you can start processing payments as quickly as the next day.
Benefits of accepting APMs
Alternative payment methods are becoming a necessity for modern-day sellers. From digital wallets to buy now pay later options to bank transfers, more and more buyers are looking for ways to shop without using cash or a physical credit or debit card.
By accepting APMs, your business also benefits.
Increase your sales: Customers may be more likely to finish a purchase if they see their preferred method of payment and don’t have to go looking for a physical card. And APMs open payment options to people who want to pay in installments or don’t have a credit or debit card.
Grow your customer base: On top of making payment more accessible, preferred payment methods vary depending on location. Offering APMs can open your store up to international customers.
Establish your trustworthiness: APMs often come with an extra level of financial security, like two-step verification for digital wallets. That protects your business and makes new customers feel more secure shopping with you.
Embracing alternative payment methods not only allows you to appeal to a wider audience, you can also increase conversions by streamlining the checkout process and stay ahead of ecommerce trends.