The way we pay is changing, fast. Customer expectations have shifted, and businesses can no longer afford to rely solely on traditional payment methods. If you want to reach more customers, drive conversions, and stay ahead of your competition, alternative payment methods (APMs) are essential.

APMs offer businesses and consumers greater flexibility, convenience, and often affordability. However, no single APM is dominant, and preferences vary significantly across locations and demographics.

As Andres Treviño, Zone Payments Management AVP at L'Oréal, shared in his interview for our My Path in Payments series, “At the end of the day, it's about meeting the customer where they are at, and providing choice at the moment of payment which will translate into more sales and a better customer experience.”

But what exactly are APMs, and why do they matter for your growth strategy? In this article, we break it down - what APMs are, how they work, and how the right mix can maximize revenue opportunities for your business.

What are alternative payment methods?

Alternative payment methods – APMs for short – are any type of payment method that isn't cash or a traditional credit card from a major international card scheme, such as Visa, Mastercard, or American Express.

Domestic cards, cash-based vouchers, digital wallets – such as Apple Pay and Google Pay – or bank transfers, including iDEAL in the Netherlands and Przelewy24 in Poland, are all considered alternative payment methods.

Despite the term alternative, APMs are often more mainstream than niche. In many countries, they're the de facto way to pay, particularly online. In 2024, 213.7 million shoppers used PayPal monthly in the United States, 111 million in Germany, and 55.2 million in the UK.

In the meantime, in the Netherlands, consumers make 73% of all online purchases with iDEAL – that’s a staggering 1.3 billion transactions.

For businesses looking to attract customers globally, selling online without accepting their preferred payment method is akin to leaving money on the table.

See how Papa John's UK and Delivery Hero are using alternative payment methods through Checkout.com to improve their customer experience and boost acceptance rates.