In the dynamic world of global commerce, businesses must continuously adapt to stay competitive. As consumers' payment preferences evolve, particularly in regions like Latin America, understanding and implementing APMs can be a significant factor in expanding a business's global footprint.

What are alternative payment methods?

Alternative payment methods refer to payment systems other than traditional cash, cheques or card transactions, commonly used for online or digital transactions. These encompass Direct Debits, digital wallets, mobile payments, peer-to-peer (P2P) payment platforms, instant payments (like Pix in Brazil), blockchain transactions, bank transfers and 'buy now, pay later'. These alternatives offer unique advantages such as enhanced convenience, heightened security measures, and often immediate transaction times.

The rise of APMs in Latin America

Latin America is a prime example of the growing popularity and adoption of APMs. In recent years, the region has witnessed a substantial shift in consumer behavior, with an increasing number of people embracing digital payments. This shift is fueled by several factors:

1. Digitalization and e-commerce growth: The rapid growth of internet and smartphone usage has accelerated e-commerce in Latin America. Consumers are increasingly making purchases online, necessitating a broader range of payment options.

2. Innovative payment solutions: The introduction of innovative payment solutions like CoDi in Mexico and Pix in Brazil has revolutionized digital payments. These frameworks offer faster, simpler, and more secure transactions, encouraging consumers to go digital.

3. Fintech advancements: The fintech sector in Latin America has seen remarkable innovation, providing consumers with new tools and digital alternatives that cater to their diverse payment preferences.

4. Pandemic acceleration: The COVID-19 pandemic accelerated the adoption of digital payments as people sought safer and more convenient ways to transact during lockdowns.

Benefits of implementing APMs for global expansion

In short, alternative payment methods provide customers the convenience and choice they want. They enable people to pay in a way that suits them, so as a merchant, it’s especially important that you’re able to offer a broad range of payment options at the checkout point. That way, you can gain an edge over your competitors, who may only offer traditional forms of payment.

1. Increased accessibility and convenience: by offering APMs, businesses can cater to a broader audience. Consumers can choose their preferred payment method, whether it's a digital wallet, real-time bank transfer, or eCash. This flexibility enhances the customer experience and can lead to increased sales.

2. Enhanced security: security is a top priority for consumers, especially in regions with high levels of fraud. APMs often provide enhanced security features, such as not requiring users to share their financial details online. This reassurance can build trust and encourage more transactions.

3. Cost efficiency: APMs can reduce transaction costs for both businesses and consumers. For instance, real-time bank transfers and digital wallets often have lower fees compared to traditional card payments.

4. Market penetration and inclusivity: a significant portion of the Latin American population remains unbanked or underbanked. APMs, such as eCash and mobile wallets, provide these consumers with access to digital financial services, promoting financial inclusion and expanding the potential customer base for businesses.

5. Cultural relevance: in Latin America, the choice to use alternative payments is often a cultural preference. Understanding and accommodating these preferences can help businesses build stronger relationships with local customers and enhance brand loyalty.

They ensure greater convenience, security, and trust for the user, who has complete control throughout the entire operation and faces less risk of having their data leaked. With all this technology, making a purchase is just a click away, without the need to fill out endless forms with all the details and still risk having the purchase declined.

Put simply, customers want a payment experience that’s as frictionless as possible. By offering alternative payment methods, that’s what you’re providing. This is especially important for merchants pursuing global expansion, ensuring you can connect with as many potential customers as possible internationally.

The role of Pix in Brazil

Pix, Brazil's instant payment system, is a standout example of an APM transforming the payment landscape. Launched by the Central Bank of Brazil, Pix allows users to make real-time payments 24/7 using mobile devices, reducing reliance on traditional banking hours and methods. Its simplicity and speed have made it incredibly popular, with millions of users adopting it within a short period.

For businesses looking to expand in Brazil, integrating Pix as a payment option is essential. It not only meets local consumer expectations but also demonstrates a commitment to leveraging cutting-edge technology to provide seamless payment experiences.

As alternative payments continue to rise in popularity, Beeteller are enabling businesses to adapt and reach more international customers trough a seamless and low-friction payment experience. Automate your payment collection with Beeteller to eliminate failed payments & expand to new markets.