Our multi-device payment app provides customers with additional features such as a contactless NF enabled key fob so they can make in store payments from their MuchBetter account. Of course, most e-wallet providers don’t stop there. The merchant receives funds from the e-wallet and the transaction is complete.The customer pays for goods or digital services using their e-wallet payment app.The customer deposits money into their account from their bank account or payment card.A customer sets up an account with an e-wallet provider.There are some variations between different e-wallet solutions, but essentially they work in the following way: Pre-paid cards / accounts – cards or digital accounts are loaded in advance with funds effectively providing consumers with a spending limitįor the purposes of this article I’m focusing on e-wallet and payment app solutions, exploring how they work and why online merchants should consider supporting e-wallets as a payment option.Wallet solutions – these include using a mobile device to make a payment in store (such as Apple Pay), or for online payments using a e-wallet / payment app that is topped up with transferred funds or linked to a bank account or payment card (like MuchBetter).Bank transfers – where online customers log in to their personal bank account from a payment page to initiate a transaction (we can also lump direct debits into this category as payments are taken directly from the customer’s bank account).Alternative payment methods also play a particularly important role in cross-border e-commerce, providing customers with global or local payment methods that are convenient, secure and trusted.īroadly speaking APMs fall into three different classifications: They can lower your fraud risk, reduce transaction fees, and help your business reach new customers.
In fact anything – other than a credit or debit card – is termed an APM, even direct debits and other long established payment options.Īs a group, APMs are expected to account for over half of online transactions by 2021, they are increasingly becoming mainstream not alternative!įor online merchants there are many benefits of accepting payments via APMs. E-wallets and payment apps that offer consumers alternative ways to pay for goods and services are giving traditional online payment methods (credit and debit cards) a run for their money!Į-wallets are classed as alternative payment methods (APMs). In recent years many new digital payment methods have come to market.
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