With the trend towards most consumers shopping online today, retail networks which offer their customers the option for prepaid alternative payments will realize increased foot traffic, customer loyalty and the added benefits of a commission on each transaction. Alternative Payment Methods also allow retailers without an e-commerce platform to participate in the online shopping world.
What is an Alternative Payment Option?
Alternative Payment Options provide consumers with a payment method to shop online without the need for a major credit card. Offering these products gives retailers the opportunity to capture those consumers who have security concerns about their information and/or would prefer, or need, to pay with cash or debit, to their retail network and increase revenue.
‘….Alternative payment methods have increased in popularity as financial technology companies and tech giants have entered the payments ecosystem, providing consumers with faster and more convenient ways to make purchases and send money to friends and family. During this year , alternative payment methods are expected to account for nearly 55% of global e-commerce transactions" What are Alternative Payment Methods?
Attract younger consumers
Alternative payment methods are also key to attracting younger consumers whose preference for participating in e-commerce purchasing is higher than older generations:
‘The appetite for alternative payment methods is especially strong in younger consumers.[…] Our research found that less than half of Gen Z consumers — 39% — regularly pay online with a credit card compared to 49% of other consumers.
- 40% habitually use in-app payments
- 34% habitually pay with a mobile wallet
- 29% regularly pay with online cash
- 25% habitually use pre-paid vouchers or pins
Millennials — consumers aged 25 to 39 — use alternative payment methods just as often at Gen Z. The only notable differences are that Millennials have a slightly higher preference for online cash payments (30%) and a lower affinity towards pre-paid vouchers and pins (23%).’ Why Payment Choice is Key to Attracting Younger Consumers.
Canadian use of card alternatives expands
The use of alternative payments options by Canadians continues to rise. This trend provides a significant opportunity for retailers to increase their revenue and customer base, while also building consumer loyalty by understanding their needs and responding to them.
'Canadians’ use of card alternatives continued to grow. Use of card alternatives (such as smart watches) increased dramatically, generating $244 million in payment transactions in 2020, an increase of 115 per cent and 125 per cent in the volume and value respectively from 2019. Approximately 29 per cent of Canadians made a purchase using a mobile payment or digital wallet; 21 per cent of Canadians made in-app purchases compared to 18 per cent in 2019, and 14 per cent of Canadians made purchases using gaming consoles or Internet of Things (IoT) devices, compared to 15 per cent in 2019. Finextra Pandemic sparks evolutionary year for Canadian payment landscape
Offer Alternative Payment Product options to drive traffic
Now Prepay is always seeking to expand and evolve its prepaid product categories and provide our retail network more options to drive traffic and increase their customer base. We’ve added payment solutions that give your retail network and its customers access to a variety of different payment options.
‘As technology allows consumers to leverage online banking, manage digital wallets, or even use smartphones with biometrics to pay, APMs are increasing in popularity…' Payments Journal Alternative Payment Methods take over global online businesses.
Now Prepay’s Alternative Payment categories
- Wallet Loading
- Amazon Cash
- Stage And Pay
- General Reloadable Prepaid Cards
- Online Payment Vouchers (Paysafecard, Neosurf, Flexepin, plus more)
Increase customer loyalty and customer base
Offering Alternative Payment Products provides significant benefits for consumers, who are looking for ways to make life simpler and easier. By providing solutions to customers’ problems, retailers will build loyalty and increase their consumer base.