2016 is set to become another year of note within the ever-growing Alternative Payment (AP) sector. Recent figures suggest that APs currently account for €180bn of accepted e-commerce transactions globally, which is around one-quarter of the worlds transaction share.
Put simply, alternative payments are defined as any method of acceptance that’s non-debit or credit card related. Broadly speaking, they encompass digital wallets, bank to bank and prepaid solutions. And it is these payment channels that are set to increase their share of the online payments sector by outstripping credit card penetration within the next two years.
More Payment Options Increase Checkout Conversion
One of the biggest challenges E-commerce retailers of all sizes face is being able to successfully expand sales activities into overseas markets. Undoubtedly one of the cornerstones of any market expansion strategy is not only to understand country-specific regulations but also to be well acquainted with local payment practices. It is no longer sufficient to only offer Visa/Mastercard at the point of checkout. International customers have local preferences and therefore, in a bid to improve the overall customer experience, merchants must understand what payment methods are readily available to offer via their website.
By having these additional payment acceptance options in place, retailers instantly add more appeal to their site. As a result, they can expect to not only drive revenues through increased checkout converions, but also reduce cart abandonment at the same time.