The current payments landscape includes many options beyond cash, debit, and credit. It’s important to familiarize yourself with alternative payment methods to cater to evolving customer payment preferences. Alternative payment methods, also known as APMs, is an umbrella term that includes any payment method that allows you to transfer funds without needing to use cash or card.

You might use at least one alternative payment method already, like a digital wallet. According to a VISA study on alternative payment methods (2025), digital wallets have already surpassed credit cards as the most popular payment method for online checkout. That figure is expected to grow: it’s projected that 58% of online purchases will be made with alternative payment methods by 2028.

For retailers and businesses, accepting these payment options is an important part of keeping up with customer demand. Below, we’ll cover what you should know about alternative payment methods, how they work, and how to accept them.

What’s in this article?

• What are alternative payment methods?

• Types of alternative payment methods

• Popular alternative methods around the world

• How to factor alternative payment methods into your payment strategy

• How to accept alternative payment methods with Stripe

• Benefits of accepting alternative payment methods

• How Stripe Payments can help

What are alternative payment methods?

An alternative payment method is a way to transfer funds that isn’t cash, debit card, or credit card—any method that’s not one of the traditional payment options. APMs are typically technology-driven solutions that allow people to access, send, and spend their money easily, without having to carry around cash or cards.

While alternative payment methods have existed throughout human history—think bartering, for example—the internet opened up APMs as we understand them today. PayPal offered shoppers a new way to digitally interact with their bank account and make payments to others directly, without the need for cash or a card. Smartphones expanded this significantly, to the point that the global mobile payment market was valued at $88 billion in 2024 and is expected to grow to $587 billion by 2030, with a CAGR of 38.0% from 2025 to 2030.

Types of alternative payment methods

Here are the alternative payment methods that businesses are most likely to encounter:

• Digital wallets
  The most common type of alternative payment method that businesses and retailers will interact with are digital wallets. Digital wallets facilitate the transfer of money without requiring physical cash or a card, using near-field communication (NFC) technology, which allows individuals to tap their phone to a terminal in order to initiate a transfer. Customers can store digital cash or card information in these digital wallets and use them to complete transactions. Services such as Apple Pay, Google Pay, and PayPal are digital wallets.

• Bank transfers
  Another popular option is Automated Clearing House (ACH) payments and other types of bank transfers. These allow customers to transfer money from their bank account to a business in order to complete a transaction. It works in a similar way to a debit card, but does not require a physical card to move funds from point A to point B.

• Cryptocurrency
  Another alternative payment method is cryptocurrency. This is a digital currency typically mined through complex computational equations, which can be stored or transferred in a hardware wallet, sometimes called cold storage, or on an exchange or internet-connected service known as a hot wallet. Cryptocurrency transfers can be complex and carry high fees, which is part of the reason they have not yet gained major traction as transaction currency.

• Buy now, pay later
  Another alternative payment method that has grown significantly in recent years is buy now, pay later (BNPL) solutions, or payment installments. This option allows customers to purchase an item without making the full payment at the time of purchase. Typically, customers are given the choice to make multiple, smaller payments to complete the transaction in order to purchase the item. BNPL is a popular choice for customers because it offers an interest-free way to spread out the cost of a payment, extending a credit-like option even to those who do not have credit cards.

• Account-to-account (A2A) transfers
  Account-to-account (A2A) transfers, also known as bank-to-bank payments or “Pay by Bank,” allows customers to move funds directly from their personal bank account to a merchant’s account without the need for a physical credit or debit card. This is an increasingly popular choice for one-time purchases and recurring subscriptions, as it provides a seamless, “instant” payment experience that avoids the high processing fees and expiration issues often associated with traditional card networks.

Popular alternative methods around the world

While businesses might already be familiar with region-specific alternative payment methods, there are many popular APMs that are used globally. If you’re doing business overseas or want to attract international customers, make sure you’re aware of these popular alternative payment methods.

Popular APMs in Europe

Europe’s payment landscape is highly fragmented, with a strong shift toward A2A payments and “Buy Now, Pay Later” (BNPL) services.

• Digital wallets
  Wallets account for roughly 30% of European ecommerce.

• BNPL
  Europe is a stronghold for BNPL providers. In markets like Sweden and Germany, BNPL is expected to account for up to 17% of ecommerce payments by 2026.

• Local A2A schemes
  Many countries prefer domestic bank-transfer methods, such as iDEAL | Wero (Netherlands), Bancontact (Belgium), and Swish (Sweden).

Popular APMs in Asia-Pacific (APAC)

Asia-Pacific is the global leader in APM adoption, where over 70% of online payments now bypass traditional card networks in favor of “super-apps” and real-time systems.

• Alipay and WeChat Pay (China)
  Digital wallets like Alipay or WeChat Pay dominate Chinese ecommerce. Alipay alone has 1.43 billion users, making it the most-used digital wallet in the world.

• UPI (India)
  The Unified Payments Interface (UPI) processes over 84% of India’s retail digital payments, with over 450 million active users as of 2025.

• Southeast Asian wallets
  In nations like Indonesia and Malaysia, digital wallet usage is projected to reach 84% of urban consumers by 2025. Prominent local players include GrabPay, GoPay, and TrueMoney.

Popular APMs in North America

While North America has traditionally been a card-centric market, mobile-first payment methods have seen a massive surge among younger demographics.

• Digital wallets
  Nearly nine in ten North Americans use digital payments. Digital wallets account for approximately 37% of US ecommerce transactions, often used as a “wrapper” for existing credit and debit cards.

• Contactless and QR
  By 2025, an estimated 99.5 million Americans will use QR code payments regularly, a trend driven by small businesses and the hospitality sector.

• Buy now, pay later (BNPL)
  The US BNPL market is expected to reach $128 billion in 2026.

• Real-time A2A payments
  Account-to-account payment methods are expected to exceed $200 billion by 2027, growing by a compound annual growth rate of 19%.

Popular APMs in Latin America (LATAM)

The LATAM region is defined by a rapid transition from cash-based economies to instant digital payment systems.

• Pix (Brazil)
  Launched by the Central Bank of Brazil, Pix is now used by more than 150 million people and is a primary driver behind the projected tripling of digital payment revenue in LATAM.

• eCash
  Because 35% of the population remains unbanked, eCash methods like PagoEfectivo and Boleto Bancario remain essential.

• Digital wallets
  Wallet adoption is surging among consumers in LATAM, growing 20% in 2025 alone. Mercado Pago serves as the region’s leading ecosystem.

Alternative payment methods list

Below is a list of the primary alternative payment methods (APMs) supported by Stripe:

Digital wallets

• Alipay
  
  • Primary region: China
    
  • Currencies: AUD, CAD, CNY, EUR, GBP, HKD, JPY, MYR, NZD, SGD, USD
    
• WeChat Pay
  
  • Primary region: China
    
  • Currencies: AUD, CAD, CHF, CNY, DKK, EUR, GBP, HKD, JPY, NOK, SEK, SGD, USD
    
• Cash App Pay
  
  • Primary region: United States
    
  • Currencies: USD
    
• GrabPay
  
  • Primary region: Southeast Asia (Singapore, Malaysia)
    
  • Currencies: SGD, MYR
    
• Apple Pay
  
  • Primary region: Worldwide except India
    
• Google Pay
  
  • Primary region: Worldwide except India
    

Bank Redirects

• iDEAL
  
  • Primary region: Netherlands
    
  • Currencies: EUR
    
• Bancontact
  
  • Primary region: Belgium
    
  • Currencies: EUR
    
• EPS
  
  • Primary region: Austria
    
  • Currencies: EUR
    
• P24 (Przelewy24)
  
  • Primary region: Poland
    
  • Currencies: PLN, EUR
    
• BLIK
  
  • Primary region: Poland
    
  • Currencies: PLN
    
• FPX
  
  • Primary region: Malaysia
    
  • Currencies: MYR
    

Buy now, pay later (BNPL)

• Affirm
  
  • Primary region: United States, Canada
    
  • Currencies: USD, CAD
    
• Afterpay / Clearpay
  
  • Primary region: US, UK, Australia, Canada, New Zealand, France, Spain
    
  • Currencies: USD, GBP, AUD, CAD, NZD, EUR
    
• Klarna
  
  • Primary region: Global (Europe, US, Canada, Australia)
    
  • Currencies: EUR, USD, GBP, AUD, CAD, CHF, CZK, DKK, NOK, PLN, SEK
    

Bank debits and transfers

• SEPA Direct Debit
  
  • Primary region: European Union (SEPA Zone)
    
  • Currencies: EUR
    
• Bacs Direct Debit
  
  • Primary region: United Kingdom
    
  • Currencies: GBP
    
• BECS Direct Debit
  
  • Primary region: Australia
    
  • Currencies: AUD
    
• ACH Direct Debit
  
  • Primary region: United States
    
  • Currencies: USD
    

Real-time and vouchers

• Pix
  
  • Primary region: Brazil
    
  • Currencies: BRL
    
• PromptPay
  
  • Primary region: Thailand
    
  • Currencies: THB
    
• PayNow
  
  • Primary region: Singapore
    
  • Currencies: SGD
    
• OXXO
  
  • Primary region: Mexico
    
  • Currencies: MXN
    
• Boleto
  
  • Primary region: Brazil
    
  • Currencies: BRL
    
• Konbini
  
  • Primary region: Japan
    
  • Currencies: JPY
    

How to factor alternative payment methods into your payment strategy

For businesses, offering APMs is an important part of staying relevant with customers today. Understanding customer payment preferences is key to adapting.

To account for this shift, businesses can work with a payment processor that supports alternative payment methods and accepts transactions from popular services such as digital and mobile wallets, bank transfer services, cryptocurrency, and more.

Stripe offers all of these solutions for businesses. Stripe can process traditional credit card and debit card transactions from major card issuers, as well as accept payments from popular mobile wallets such as AliPay and Apple Pay. It supports ACH and bank transfer solutions, buy now, pay later options like Affirm and Klarna, and even cryptocurrency.

How to accept alternative payment methods with Stripe

As alternative payment methods continue to grow in popularity, new options will emerge. Setting up a new alternative payment method with Stripe is simple, so you can stay on top of customer preferences while investing your time and energy where it’s needed.

To activate a new payment method, open the “Payments” settings in the Dashboard, select the payment method you want to add, and request access. Once you verify your merchant information and are approved, the payment option status will change from “pending” to “eligible.” At this point, you can change the status to “live” in order to accept the payment method.

Benefits of accepting alternative payment methods

Accepting alternative payment methods has many benefits for businesses. The most important benefit is the ability to drive more sales by accepting a larger variety of payment methods, allowing customers to make purchases and complete transactions. By making it possible to accept popular payment methods from around the world, alternative payment methods can help a business expand their market to new regions. Additionally, APMs can extend options to customers with little credit history by offering buy now, pay later solutions, while limiting friction at checkout, allowing for faster and more seamless transactions.

Alternative payment methods can also save a business money by helping them avoid expensive credit card transaction fees. In offering these methods, a business encourages customers to use APMs in place of credit cards, resulting in fewer fees.

In many cases, alternative payment methods offer additional security that benefits businesses as well as customers. Digital wallets, for example, reduce the risk of fraud by requiring customers to confirm their identity before completing a transaction. Some, like Apple Pay, create a virtual card so that a cardholder’s real card information never reaches the business. In the event of a security breach, this can lower the risk of fraud.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.