What Are Alternative Payment Methods?
Alternative payment methods (APMs) are any payment method customers use other than traditional credit and debit cards. As consumer payment preferences diversify, businesses that only accept Visa and Mastercard miss revenue from customers who prefer — or exclusively use — alternative payment options.
In 2025, alternative payment methods account for over 50% of global eCommerce transaction value. Digital wallets alone surpass credit cards as the most popular online payment method worldwide. For businesses, accepting APMs is no longer optional — it directly impacts conversion rates and revenue.
Types of Alternative Payment Methods
Digital Wallets
Apple Pay, Google Pay, Samsung Pay, and Shop Pay let customers pay with a tap or click using cards stored in their mobile wallet. Benefits include faster checkout (30% faster than manual card entry), higher conversion rates, reduced cart abandonment, and strong fraud protection through tokenization.
For brick-and-mortar businesses, contactless wallet payments are the fastest checkout method available. For eCommerce, wallet buttons at checkout reduce form-filling friction significantly.
Buy Now, Pay Later (BNPL)
Services like Affirm, Afterpay, and Klarna let customers split purchases into installments. The merchant receives full payment upfront while the BNPL provider handles collection. BNPL increases average order value by 30-50% and reduces cart abandonment by 20-30%.
ACH and Bank Transfers
ACH payment processing lets customers pay directly from their bank account. Processing fees are significantly lower than credit cards (typically $0.25-$1.00 per transaction vs 2-3% for cards). Best for high-ticket items, B2B transactions, recurring payments, and businesses where card processing fees eat into margins.
Cryptocurrency
Bitcoin, Ethereum, and stablecoins provide borderless, irreversible payments with no chargebacks. Processing fees are typically 0.5-1%. Best for digital goods, international transactions, and tech-forward customer bases. Settlement can be in USD to avoid cryptocurrency price volatility.
Prepaid Cards and Gift Cards
Prepaid and gift card acceptance captures revenue from customers who don't have traditional bank accounts or credit cards. Important for businesses serving younger demographics and underbanked populations.
Regional Payment Methods
Specific regions have dominant payment methods that differ from US norms. Brazil has Pix and Boleto, Germany has SEPA and Giropay, the Netherlands has iDEAL, and Southeast Asia has various mobile wallet ecosystems. For businesses with international customers, supporting regional methods is essential.
Why Alternative Payment Methods Matter for eCommerce
The data on APMs and eCommerce conversion is clear:
- Cart abandonment decreases 20-30% when preferred payment methods are available
- Average order value increases 30-50% with BNPL options
- International conversion rates increase 10-15% with local payment methods
- Checkout speed improves 30% with digital wallets vs manual card entry
- Processing costs decrease 50-80% when customers use ACH instead of credit cards
For eCommerce businesses, every additional payment method at checkout captures customers who would otherwise leave. The incremental cost of supporting APMs is minimal compared to the revenue gained.
How Many Alternative Payment Methods Should You Offer?
The answer depends on your customer base and business model:
- Local brick-and-mortar: Cards + contactless wallets + ACH (for B2B)
- US eCommerce: Cards + Apple Pay + Google Pay + BNPL + ACH
- International eCommerce: All of the above + regional methods for your top markets
- B2B: Cards + ACH + wire transfer + invoicing
- High-risk: Cards + ACH + cryptocurrency (where card processing is restricted)
More options are generally better, but each method adds complexity. Start with the methods your customers most frequently request, then expand based on data.
Getting Started with Alternative Payment Methods
Unison Payment Solutions integrates alternative payment methods alongside your card processing. One merchant account, one dashboard, multiple payment methods:
1. Digital wallets — Apple Pay and Google Pay enabled through your existing payment gateway 2. BNPL — Affirm, Afterpay, and Klarna integration through our financing program 3. ACH — Direct bank account payments with lower fees than cards 4. Cryptocurrency — Bitcoin and stablecoin acceptance with USD settlement
Contact us for a payment method assessment — we analyze your customer base and recommend the APMs that will have the biggest impact on your conversion rates and revenue.