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What are alternative (advanced) payment methods?

al - ter - na - tive pay - ​ment  meth - ods

noun

Alternative payment methods, sometimes referred to as Advanced Payment Methods, are payment methods that are outside cash or global card schemes such as Visa, Mastercard and American Express. The industry refers to these payments as APM in short, generally include card payments made with prepaid cards, smartphones or e-wallet services (Cash App, Venmo, PayPal, Alipay), bank transfers, Buy Now, Pay Later or BNPL for short (Affirm, Klarna), instant financing, cryptocurrencies like bitcoin, loyalty program points, etc.

How do they work?

Alternative payment methods (APMs) have reshaped the landscape of financial transactions, offering a diverse array of options beyond traditional cash or major card schemes. APMs provide a tailored approach to payment, accommodating the preferences and lifestyles of modern consumers.

Cryptocurrencies are also alternative payment methods, including examples like Bitcoin, which has gained substantial recognition for its decentralized nature and potential as a global currency. APMs can also refer to loyalty program points as a means of transacting, financing options and so on.