Alternative Payment Methods (APMs) refer to any payment option other than cash or major credit/debit card schemes (Visa/Mastercard). These include digital wallets, bank transfers (open banking), “Buy Now, Pay Later” (BNPL) services, and localized regional payment options.
APM integrations are critical for boosting conversion rates and entering regional markets, as they cater to specific consumer preferences, such as Pix in Brazil, Bancontact in Belgium, or UPI in India.
Key APM Providers and Types
APM providers fall into several categories, often integrated through Payment Service Providers (PSPs) like Adyen, Nuvei, or Stripe.
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Digital Wallets: Apple Pay, Google Pay, Samsung Wallet, PayPal, GrabPay, WeChat Pay, Alipay.
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Bank Transfers/Open Banking: iDEAL (Netherlands), Trustly (Europe), Sofort, POLi (Australia), KNet (Kuwait).
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Buy Now, Pay Later (BNPL): Klarna, Afterpay/Clearpay, Affirm.
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Regional/Mobile Payments: Pix (Brazil), BLIK (Poland), Bancontact (Belgium), GCash (Philippines), UPI (India), Bizum (Spain).
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Prepaid/Vouchers: Paysafecard, Neosurf.
Integration Methods
APM providers are integrated via PSPs, offering different technical approaches:
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Redirect Workflow: The customer is redirected to the APM provider’s site (e.g., bank portal) to authenticate the payment.
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Direct/Native Workflow: The APM is integrated directly into the merchant’s checkout page via SDK or API.
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Payment Orchestration Platforms (POPs): Platforms like Primer or Payrails allow merchants to connect to over 100+ APMs through a single payment system integration point.
Top APM Integration Providers
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Nuvei: Offers extensive “Dedicated APM Integration Guides” supporting everything from digital wallets to local bank transfers.
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Adyen: Provides a unified platform supporting major regional APMs and digital wallets.
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Ingenico: Supports a wide range of APMs, with specialized regional options.
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PayPal: Provides its own suite of APMs alongside its digital wallet.
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Antom/Solidgate: Focuses on connecting global merchants to local payments across Asia, LATAM, and Europe.
Key Considerations for Integration
- Localized Experience: Choosing APMs relevant to the target market is crucial (e.g., Offering PIX in Brazil is essential for high conversion).
- Simplified Integration: Using a single integration partner (PSP or Orchestrator) to add multiple APMs reduces technical maintenance.
- Security & Compliance: Ensuring the integration meets PCI DSS standards.
- Transaction Costs: APMs often have lower processing fees compared to traditional credit cards.