What Alternative Payments Are and How They Work
Are you a business owner who is looking for ways to boost you sales? One of the simplest solutions is to start accepting alternative payment methods. Not sure what alternative payment methods are or how they can pump up your bottom line? This beginner’s guide to alternative payments covers everything you need to know.
What is an Alternative Payment Method?
Any form of payment other than cash, debit cards or credit cards is an alternative payment method. In 2024, 58% of global e-Commerce purchases were made using an alternative payment method. That number is expected to grow to 70% by 2027.
What are examples of alternative payment methods?
- Digital or e-Wallets: PayPal, Google Pay, Apple Pay, Alipay, WeChat Pay, MTN, Venmo
- Buy Now Pay Later (BNPL): AfterPay, Pay Pal Pay Later
- Bank Transfers (very common in Europe where 36% of online purchases are completed using a bank transfer)
- Cryptocurrencies
What is the Most Popular Alternative Payment Method?
Around the world, e-Wallets are the most popular alternative payment method with over 44.5% of global e-Commerce purchases being made using an e-Wallet.
The number of users of e-Wallets varies from country to country.
- In the UK, over 330,000 people use PayPal daily.
- In Africa, MTN has over 270 million users.
- In China, Alipay has 1.3 billion users.
- China’s WeChat Pay has over 4 million users in the US.
- In the US, 40% of e-Commerce payment are made with an e-Wallet.
Why it’s a Smart Decision to Accept Alternative Payments
Expanding the payment options you accept in one of the most easiest ways to win more customers and keep them coming back. Today’s shoppers — whether they’re tourists, new immigrants bringing payment habits from abroad or younger, tech-savvy generations — expect to pay in the way that feels most convenient and familiar. If you only accept traditional methods like cash or credit cards, you risk losing sales to competitors who make checkout easier with e-Wallets, bank transfers, or other popular alternatives.
Offering more choices at checkout not only helps prevent abandoned shopping carts, but also increases the chances that a customer will complete a purchase.
For businesses looking to expand beyond their local market, alternative payment methods also opens doors to international buyers who may prefer different systems.
Plus, many of these payment methods come with added benefits, like stronger security features and, in some cases, lower transaction fees.
Ultimately, accepting alternative payments is about more than keeping up with trends — it’s about removing barriers between your business and your customers. The easier you make it for people to pay, the more opportunities you create to grow your sales and strengthen loyalty.
How OTT Pay Makes it Easy to Accept Alternative Payment Methods
With OTT Pay, you can accept a wide range of payment methods through one easy-to-use platform. Our POS and e-Commerce solutions are designed to help you connect with today’s diverse customer base, including the fast-growing international community.
Through our Global Acceptance payments solution, your business will be able to quickly process purchases by customers whose preferred payment method is international e-Wallets such as Alipay and WeChat Pay. This means your customers will be able to pay in the way that feels most natural to them, and you’ll get to expand your reach into your audiences and markets.
Experience how easy OTT Pay’s Global Acceptance solution will make it easy for your business to accept alternative payment methods.