In a competitive digital economy, understanding how to increase conversion rate in sales is critical for growth. 

One often-overlooked factor that significantly impacts sales performance is payment flexibility. 

Consumers today expect speed, security, and convenience—and offering alternative payment methods (APMs) with seamless integration can deliver just that.

An alternative payment method refers to any form of payment that doesn't rely on cash or traditional credit/debit cards from major schemes like Visa or Mastercard. This includes options like digital wallets, bank transfers, mobile payments, buy now pay later (BNPL), and even cryptocurrency. 

As APMs continue to grow in popularity, they're proving to be more than just a convenience—they're a conversion driver.

According to Statista, over 49% of global e-commerce transactions were completed using digital and alternative payment methods in 2024, a number that continues to rise. But no single APM dominates globally—preferences vary by region, age group, and device usage—making adaptability key.

In this article, we'll explore the fundamentals of alternative payments, offer real-world alternative payment methods examples, and explain how to implement them with seamless integration to boost your sales. 

Whether you're targeting local customers or expanding internationally, the right payment strategy can transform your checkout experience—and your conversion rate.

Understanding Local Payment Preferences to Boost Global Checkout Conversion

Thriving in international eCommerce—especially in mobile-first markets—requires more than translating your site or offering international shipping. 

True success hinges on knowing how customers in each market discover products, complete purchases, and, most importantly, prefer to pay. The phrase "think globally, sell locally" has never been more relevant, particularly when it comes to integrating locally preferred payment methods at checkout.

Today's consumers expect flexible and familiar options, and relying solely on major card networks like Visa or Mastercard is no longer sufficient. 

According to industry forecasts, over 55% of online purchases globally are now completed using non-card payment methods. 

These alternative digital payment solutions include bank transfers, digital wallets (like PayPal or Apple Pay), mobile money, instant payments, and even region-specific options such as Klarna in Europe or PayNow in Singapore.

The rapid rise of mobile commerce plays a huge role in this shift. 

Typing card numbers on small screens is cumbersome, leading users to prefer seamless checkout options embedded in apps or wallets. 

Even when traditional cards are used, they're often hidden behind more convenient embedded payment interfaces.

To scale internationally and reduce cart abandonment, merchants must adopt a localized payment strategy. 

Offering trusted, mobile-friendly payment methods tailored to regional expectations is not just a competitive edge—it's a conversion driver.

Types of Alternative Payment Methods:

In today's global eCommerce landscape, offering a variety of alternative payment methods is no longer optional—it's essential to meet evolving consumer preferences. 

These non-traditional options go beyond major card schemes like Visa and Mastercard, enabling businesses to cater to localized demands, improve checkout experiences, and increase conversion rates.

Below are the most common types of alternative payment methods, organized by how they function and serve different market needs:

1. Digital & Mobile Wallets

These wallets securely store users' payment information and enable quick, contactless transactions—both online and offline.

• Digital Wallets - Apple Pay, Google Pay, and Samsung Pay store tokenized card data for safer, faster payments.
• Mobile Wallets - Apps like Alipay and M-Pesa allow users to load funds via bank transfers or carriers and pay via QR code or NFC.
• E-Wallets - Services like PayPal and Skrill let users load funds and transact online or peer-to-peer without linking to a physical card.

2. Buy Now, Pay Later (BNPL)

BNPL options let shoppers defer payments or split purchases into interest-free installments.

• Popular services include Klarna, Afterpay, Affirm, and Sezzle.
• These methods appeal to younger consumers who prefer financial flexibility without credit checks.

3. Bank-Based Methods

These involve direct transfers or withdrawals from a customer's bank account.

• Real-Time Bank Transfers - Examples like iDEAL (Netherlands) and Sofort (Germany) support instant payments.
• Direct Debit - Used for recurring payments, these allow merchants to pull funds with consumer consent (e.g., SEPA, ACH, BACS).

4. Prepaid and Cash-Based Options

Great for unbanked customers or privacy-conscious buyers.

• Prepaid Cards - Reloadable cards not linked to a bank account; consumers can only spend the loaded amount.
• Cash-Based Payments (e-Cash) - Methods like Boleto (Brazil), Oxxo (Mexico), and Fawry (Egypt) let customers generate a payment code online and pay with cash at a physical location.

5. Local and Regional Card Schemes

Tailored to specific markets and often cheaper for merchants.

• Examples include Bancontact (Belgium), Carte Bancaire (France), and Mada (Saudi Arabia).

Why Embracing Alternative Payment Methods Boosts Conversions

Limiting checkout options is one of the quickest ways to lose a sale. 

According to Baymard Institute's 2024 research, nearly 88% of online shopping carts are abandoned, with one of the top reasons being the lack of preferred payment options.

Today's customers expect not just a secure and fast checkout—but familiarity and flexibility. 

If they can't use the payment method they rely on—whether it's a mobile wallet, installment plan, or regional service—they often exit and complete the purchase somewhere else. In fact, 37% of global consumers say they won't return to a store that doesn't offer their preferred payment method, according to Global Payments' 2023 Trends Report.

Integrating alternative payment methods (APMs) like Apple Pay, Klarna, or Sofort is no longer optional—it's a competitive necessity. 

APMs support regional preferences, financial inclusion, and modern buying behaviors, such as mobile-first payments and buy-now-pay-later (BNPL) flexibility.

Why Shoppers Abandon Their Carts—and How to Fix It

We do know that shopping cart abandonment continues to be a major challenge for eCommerce businesses across every sector. 

While there are many reasons a customer might abandon their purchase, payment-related friction is one of the most common—and most fixable—issues.

When shoppers reach the final step of their journey and encounter a payment process that feels unfamiliar, slow, or inconvenient, they're far more likely to exit rather than adjust.

In fact, many will abandon the entire transaction if their preferred payment method isn't available.

Some of the leading causes of payment-related cart abandonment include:

• No access to preferred payment options (like digital wallets or buy now, pay later services)
• Long or complicated checkout forms requiring unnecessary personal data
• Security concerns with unfamiliar payment providers
• Poorly optimized mobile payment experiences

Solving these issues starts with offering a wide range of alternative payment methods (APMs) that align with regional preferences and shopping behaviors. 

By integrating trusted local options, streamlining the checkout experience, and improving mobile usability, retailers can reduce abandonment rates and build customer trust.

Optimizing the final step of the sales funnel isn't just about functionality—it's about creating a seamless, secure, and familiar experience that encourages customers to complete their purchases.

How to Find the Right Payment Method Mix to Maximize Conversions 

Now when it comes to maximizing conversion rates starts with offering the right mix of payment methods—tailored to your shoppers' preferences, devices, and location. 

While many merchants focus on providing one or two popular options, the reality is that consumer expectations are more nuanced. Most shoppers have 1–2 trusted payment methods they consistently use—others might be ignored entirely.

To optimize conversions, merchants should align their payment strategy with the specific market, industry, and device in use. 

For example, mobile-first regions may lean heavily on digital wallets or carrier billing, while desktop users in certain countries might prefer traditional bank transfers or invoice-based payments.

An experienced payment service provider (PSP) plays a vital role in navigating this complexity. A capable PSP can offer valuable insights based on market trends, historical transaction data, and global payment acceptance strategies.

Key steps merchants should take include:

• Offering the top three local payment methods in each target market, not just the most popular. Research shows this approach can boost conversion rates by up to 30%.
• Continuously monitoring conversion and usage data for each method to stay agile and adjust when customer behavior shifts.
• Leveraging dynamic payment logic to personalize payment options based on pre-assessed risk factors, such as device type, location, and shipping address. This approach helps reduce fraud while increasing trust and completion rates.

Ultimately, the right payment methods not only increase conversions but also signal legitimacy and reliability—two traits that significantly influence shopper trust at checkout.

From Planning to Profit - Strategic Payment Integration

Implementing payment methods isn't just a technical upgrade—it's a strategic move that directly impacts customer experience, conversion rates, and global scalability. 

To do it successfully, businesses must plan thoughtfully, balancing customer preferences with technical feasibility and long-term sustainability.

Key challenges include integration complexity, ongoing maintenance, and performance visibility. Without addressing these from the outset, merchants risk poor user experience, higher operational costs, and missed revenue opportunities.

Payment service providers (PSPs) play a crucial role here. Comprehensive platforms offer access to a wide array of APMs through a single API or dashboard, simplifying deployment across markets. 

Meanwhile, regional or category-specific providers may specialize in local payment behaviors but require additional development resources to integrate multiple systems. 

What to Consider When Building a Scalable, Flexible Payment Infrastructure 

Modern businesses need flexible, API-first payment architectures that can scale with evolving user behaviors and emerging technologies. 

This infrastructure should support rapid rollout of new payment options while ensuring a seamless, consistent checkout experience.

When evaluating a PSP or planning an integration, businesses should assess:

• Availability and reliability of each payment method
• Complexity of integration and required development resources
• Ongoing maintenance and customer support commitments
• Real-time performance monitoring and optimization tools

These considerations influence not only the initial cost of implementation but also long-term ROI and operational efficiency. 

Choosing the right partner and architecture ensures your payment strategy evolves in step with both market demands and customer expectations.

Choosing the Right Integration Method for Alternative Payment Methods 

Selecting the right integration model is a crucial step in delivering a frictionless and future-proof payment experience. 

The ideal option should align with your technical capabilities, scalability goals, and geographic expansion plans. 

Here's a breakdown of the most common payment method integration options, along with their pros and cons:

Key Considerations When Selecting an Integration Approach

• Business Size & Development Resources – Startups may benefit from hosted pages or drop-in UIs, while larger enterprises may prefer API-based or orchestration models for scalability and customization.
• Market Expansion Strategy – If targeting international markets, opt for platforms that offer a wide range of alternative payment methods localized to each region.
• Security & Compliance – Hosted and SDK models typically offload PCI DSS responsibilities, while direct API approaches may require internal compliance planning.
• Performance Monitoring – Look for integrations that support real-time analytics and A/B testing for payment method performance.

By choosing the right integration path—and the right payment provider—you ensure that your alternative payment method strategy not only works today but evolves effortlessly with your business tomorrow.  

Payment method implementation extends beyond technical integration to encompass user experience design and optimization. Checkout flow design, payment method presentation, and error handling all influence customer satisfaction and conversion performance.

Effective user experience optimization involves continuous testing and refinement based on customer behavior analysis. 

Payment method performance varies across different customer segments, requiring ongoing optimization to maintain peak conversion rates.

Measuring Success - Payment Analytics and Continuous Optimization 

To fully grasp how your payment strategy influences customer experience and business results, it's essential to look beyond simple transaction counts. 

A comprehensive, analytics-driven approach is needed to evaluate effectiveness across all touchpoints.

While purchase completion rates remain a vital indicator, other performance signals—such as processing time, customer feedback, refund frequency, and the volume of help desk inquiries—reveal a broader picture of how each option performs in real-world scenarios.

By studying these patterns, companies can identify user preferences, uncover points of friction in the checkout flow, and spot payment methods that may be underperforming or introducing unnecessary complexity.

Ongoing review of this data allows your payment infrastructure to evolve in step with shifting consumer expectations and emerging market behaviors—helping you stay agile, competitive, and customer-focused.

Data-Driven Insights for Smarter Payment Strategy 

Modern payment analytics platforms provide powerful tools to compare performance across different payment options. 

Key insights include:

• Payment method adoption by region or device
• Completion and failure rates by method
• Customer satisfaction scores and complaint volumes
• Time to complete payment and post-purchase actions

These metrics allow businesses to fine-tune their checkout process and make informed decisions about expanding or replacing specific alternative payment methods. 

Continuous Improvement - A Strategic Imperative 

As consumer behavior shifts and new payment technologies emerge, businesses must remain agile. 

Ongoing optimization means regularly testing new payment methods, evaluating customer feedback, and benchmarking against competitors.

Top-performing merchants establish structured processes for payment method evaluation, rollout, and impact assessment. 

This enables them to stay ahead of the curve—delivering frictionless payment experiences while maintaining performance, security, and operational consistency.

Wrapping up

Alternative payment methods represent a fundamental shift in how businesses approach customer payment experiences. 

Success in modern e-commerce requires understanding diverse customer preferences while implementing payment solutions that enhance, rather than complicate, the purchasing process.

The strategic implementation of alternative payment methods presents significant opportunities for improving conversion rates, expanding markets, and enhancing customer satisfaction. 

Businesses that proactively embrace payment method diversity while maintaining a focus on user experience optimization will continue to build competitive advantages in an increasingly digital marketplace.

The future of online payments lies in flexibility, security, and a customer-centric approach. 

Organizations that recognize these principles and implement comprehensive alternative payment method strategies position themselves for sustained growth and success in evolving digital commerce environments.