Alternative payment methods are any way to pay that isn’t cash or a traditional credit or debit card — think digital wallets, bank transfers, buy now pay later, and crypto.
Here’s a quick look at how the main types compare:
| APM Type | Ideale per | Speed | Merchant Cost |
|---|---|---|---|
| Digital wallets (Apple Pay, Google Pay) | In-store and online checkout | Immediato | 1.5–3% |
| Bank transfers / ACH | Recurring, B2B, high-value payments | Same-day to instant | 0.5–1% |
| BNPL (Klarna, Affirm, Afterpay) | Ecommerce, higher-value purchases | Approvazione immediata | 3–6% |
| Prepaid / virtual cards | Budget control, unbanked customers | Immediato | Varies |
| Cryptocurrency | Niche, global, tech-savvy audiences | Minutes | 0.5–2% |
Choosing the right mix of alternative payment methods can directly affect conversion rates, transaction costs, and customer satisfaction. Below, we cover what counts as an APM, the main types available, and how to decide which ones fit your business. For a broader overview of options, see our guide on metodi di pagamento aziendali.
What Are Alternative Payment Methods?
So, what are alternative payment methods, exactly? They’re any way to pay outside of cash, traditional credit cards, and debit cards. This includes digital wallets, bank-to-bank transfers, buy now pay later services, prepaid and virtual cards, and cryptocurrency.
“Alternative” is relative to where you’re doing business. A payment method that’s mainstream in one country — like UPI in India — may be considered alternative elsewhere. What ties APMs together is that they’re technology-driven, typically cashless, and built for speed and convenience at checkout.
This matters more than it might seem. According to Paddle, 18% of customers abandon checkout when their preferred payment method isn’t available. Meanwhile, the Worldpay Global Payments Report found that digital wallets already account for nearly half of global ecommerce transactions, with that share expected to keep climbing through 2026. If your checkout doesn’t offer the payment methods people expect, you’re likely losing sales. For a full breakdown of options available to smaller businesses, see our post on small business payment options.
Alternative Payment Methods Examples
- Apple Pay – digital wallet using stored card details and NFC
- ACH transfer – direct bank-to-bank payment, common in the US
- Klarna – buy now, pay later, split into instalments
- Bitcoin – cryptocurrency payment, settled on a blockchain
- Virtual debit card – prepaid card number generated for a single use or vendor
Types of Alternative Payment Methods
Alternative payment methods for ecommerce and B2B fall into a handful of categories, each suited to different customers and transaction types. Visa’s 2025 study on APMs, cited by Stripe, projects that APMs will be used in the majority of online purchases within a few years.
Digital Wallets
Digital wallets — Apple Pay, Google Pay, PayPal, Samsung Pay — store a customer’s card details securely and use NFC technology to complete payment at checkout. They’re the APM most consumers already use daily, making them a near-default expectation rather than a nice-to-have.
Wallets rely on tokenisation, so real card numbers are never shared with the merchant. This makes them fast and reduces exposure to card data theft. For context on impact: Paddle found that adding even one extra payment method can lift checkout conversions by 5.5%. See our pages on digital wallets for business e Apple Pay payments for setup details.
Bank Transfers and ACH Payments
Bank transfers move money directly between accounts, bypassing card networks entirely. In the US this is ACH; in Europe it’s SEPA; in India it’s UPI. Processing costs are notably lower — typically 0.5% to 1%, compared to 1.5–3.5% for cards — which makes bank transfers a strong fit for recurring billing and B2B payments.
The scale here is significant: India’s UPI network processed 18.6 billion transactions in a single month in 2025. US merchants dealing with recurring subscriptions or large B2B invoices should look closely at ACH for the same reasons — lower fees and fewer chargebacks. Learn more about accepting bank transfer payments e SEPA instant payments.
Buy Now, Pay Later (BNPL)
BNPL lets customers split a purchase into instalments, usually interest-free if paid on schedule. Klarna, Affirm, and Afterpay are the best-known providers. The global BNPL market is projected to pass $450 billion by 2026.
BNPL tends to increase average order value, and it works especially well for ecommerce merchants selling items priced above $50. It’s a higher merchant cost than most other APMs (3–6%), but many businesses see that offset by larger baskets. Explore our ecommerce payment gateway page for integration options.
Prepaid Cards, Virtual Cards, and Cryptocurrency
Prepaid cards work well for unbanked customers or anyone managing a fixed budget, since spending is capped at the loaded balance. Virtual cards are especially useful for B2B vendor payments — each card can be tied to a specific supplier or spending limit, making tracking and control easier.
Cryptocurrency remains a niche APM payment processing option, best suited to global or tech-savvy audiences. Around 28% of US adults were expected to own crypto by 2025, but adoption as an everyday payment method — rather than an investment — is still limited. It’s worth watching, not yet a priority for most businesses. See our carte di debito virtuali page for more.
Why Businesses Are Adopting Alternative Payment Methods
Businesses aren’t adding alternative payment methods for novelty — they’re doing it because it shows up in the numbers. Three drivers stand out.
Conversion lift. Paddle’s research found that 62% of buyers prefer local payment methods over unfamiliar ones, and offering them can improve conversion by up to 8%. For international or mobile-heavy audiences, this is one of the highest-leverage changes a business can make to checkout.
Shifting customer expectations. Digital wallets and BNPL have moved from novelty to default for many shoppers, especially younger ones. Not offering them can quietly push customers toward competitors who do.
Cost reduction versus card processing. Bank transfers and some digital wallets carry lower per-transaction fees than credit cards. At volume, that difference adds up to real savings. See our post on the customer payment experience for more on how payment friction affects the bottom line.
How to Choose the Right Alternative Payment Methods for Your Business
Not every business needs every APM. A simple framework helps narrow it down:
- Who are your customers, and where are they located? International customers respond better to region-specific APMs, like SEPA in Europe or UPI in India.
- What’s your average transaction value? Higher-value purchases suit BNPL; smaller, frequent purchases suit digital wallets.
- Are payments recurring or one-off? Recurring or high-value B2B payments are usually cheaper and more reliable via ACH or bank transfer.
Quick mapping:
| Business Profile | Recommended APMs |
|---|---|
| High-volume recurring B2B | ACH / bank transfers |
| Ecommerce, younger customers | BNPL and digital wallets |
| In-person retail | Portafogli digitali |
| International customers | Region-specific APMs (SEPA, UPI, etc.) |
For B2B-specific guidance, see our post on B2B payments. If you’re serving customers across borders, our cross-border payment solution page covers what to look for.
Best Practices for Accepting Alternative Payment Methods
Offering the right alternative payment methods for ecommerce or B2B is only half the job — running them well matters just as much.
Integration and Technical Setup
- Choose a payment processor that supports multiple APMs through a single integration, rather than juggling separate providers.
- Confirm PCI DSS compliance and tokenisation support before going live.
- Test checkout on mobile first — most APM usage happens on phones.
- Note that some APMs, like BNPL and crypto, require separate merchant agreements with their providers.
See our guide on payment gateway integration for setup specifics.
Managing Fees, Fraud, and Customer Experience
- Track processing fees per method and compare them against card interchange rates regularly.
- Set up fraud monitoring tailored to each APM — risk patterns differ between wallets, bank transfers, and BNPL.
- Display accepted payment methods at the start of checkout, not just on the final payment page.
- Review APM performance every quarter. If a method sees low uptake and high cost, it’s worth cutting.
For more on this, see our pages on payment fraud detection software e elaborazione dei pagamenti ricorrenti.
Domande frequenti
What is the most popular alternative payment method?
Digital wallets are currently the most widely used alternative payment method globally, accounting for close to half of global ecommerce transactions (Worldpay, 2025). In the US, Apple Pay, Google Pay, and PayPal lead the way. For B2B payments, ACH transfers are the dominant non-card method.
Are alternative payment methods safe?
Yes. Most APMs rely on tokenisation, biometric authentication, and encryption. In many cases, they carry lower fraud risk than traditional card swipes, since card details are never directly transmitted. Buyers also benefit from buyer protection policies on platforms like PayPal.
Do alternative payment methods increase conversions?
Yes. Paddle’s research shows that adding one extra payment method can increase checkout conversions by 5.5%. Separately, 18% of customers abandon checkout when their preferred payment method isn’t available. The effect is strongest for international customers and mobile shoppers.
What is the cheapest alternative payment method for businesses?
ACH transfers and bank-to-bank payments typically carry the lowest processing costs — around 0.5% to 1% per transaction, compared to 1.5–3.5% for credit cards. For high-volume or high-value transactions, that gap adds up quickly. BNPL carries the highest merchant fees, at 3–6%, though it can be offset by an increase in average order value.
