An alternative payment method (APM) is a payment outside of traditional credit and debit cards. APMs include methods such as digital wallets, bank transfers, Buy Now, Pay Later (BNPL) services, prepaid cards, and region-specific solutions (e.g., iDEAL in the Netherlands or Alipay in China). They provide consumers with greater flexibility and accessibility.
APMs are increasingly popular because they provide consumers with more convenience, security, and flexibility in how they pay. For businesses, offering APMs can improve checkout conversion rates, expand access to international markets, and meet customer expectations in regions where card usage is less common.
Alternative Payment Methods (APMs) are increasingly important because they reflect how consumer payment preferences are shifting beyond traditional credit and debit cards. Customers want options that feel more convenient, secure, and tailored to their lifestyles — whether that's paying with a digital wallet, splitting a purchase with Buy Now, Pay Later (BNPL), or using region-specific solutions.
For businesses, supporting APMs can:
In short, APMs matter because they give merchants the flexibility to meet customers where they are, helping businesses scale globally while improving customer satisfaction.
An alternative payment method (APM) is any non-card payment option, such as digital wallets, bank transfers, or Buy Now, Pay Later services, while a local payment method (LPM) is a type of APM that is specific to a country or region and often the preferred way for consumers there to pay (e.g., iDEAL in the Netherlands). In other words, all LPMs are APMs, but not all APMs are LPMs. PayPal, for example, is a global APM but not an LPM. The key difference is that APMs are a broad category of non-card methods, whereas LPMs are geographically tied and critical for merchants expanding into those markets.