The Rise of Alternative Payment Solutions in the Modern World
June 22, 2023
In today's fast-paced and digitally-driven world, traditional payment methods are becoming less relevant, and alternative payment solutions are on the rise. Fabrick and its subsidiary Axerve have recently released a whitepaper titled “Alternative payment solutions: how they are changing the payment scene” that delves into how these innovative solutions are transforming the way we make payments.
Alternative payment solutions offer a wide range of benefits to both merchants and consumers, providing a more efficient and seamless checkout process. Merchants can take advantage of transparent processing fees, without hidden costs, while customers can enjoy convenience, ease of use, and better accessibility compared to traditional methods.
The paper defines alternative payments as everything outside the traditional payment methods, including digital wallets, account-to-account transfers, Buy Now Pay Later options, and cryptocurrencies. Alternative payments are projected to reach over $15 trillion by 2027, with a CAGR of 16.3% over the period 2017-2027.
The UK is one of the most cashless countries in the world, with 95% of people having internet access, 97% having a bank account, and 65% being credit card owners. The total transaction value in the UK digital payments sector is forecast to reach almost $440 billion in 2023. Card payments make up more than half of all payments (51%), and alternative payment methods make up 41%. Bank transfers make up 7%, while cash is only responsible for 1%.
As alternative payment solutions continue to gain momentum, merchants must adopt collection platforms that can manage the wide array of solutions available, including acquirers, fraud prevention, and integrated alternative payments. To succeed in this environment, merchants must be ready to act quickly and optimize their sales while minimizing costs.
In conclusion, the rise of alternative payment solutions is changing the payment scene globally. It is clear that these innovative payment methods offer numerous benefits. As alternative payment solutions continue to grow, merchants must optimize their sales while minimizing costs. UnitedTranzActions can assist in achieving these goals by leveraging our digital payment solutions that are available across multiple payment channels. By adopting these solutions, merchants can optimize their sales, while consumers can enjoy a seamless and efficient payment experience.
Source: Alex Rolf, “Digital and alternative payments trends worldwide, April 21, 2023, accessed May, 2023