The evolving e-commerce trend has increased the global volume of online transaction.
And, the consumers are opting for alternative payments. The alternative payment methods include any of the payment types which is not a debit or credit card. It includes e-wallets, mobile payments, local card schemes, pre/post-pay, cash on deliveries, digital currencies, bank transfers, and, etc.
As a post demonetization effect in India, more people are accepting and welcoming mobile payments, e-wallets or the bank transfers. It is expected that in 2017, the volume may grow to $245 billion. Let us explore more about alternative payment methods.
Bank Transfer: The online bank transfers has attracted millions of merchants having e-commerce websites, as the payment gets immediate authorization followed by next-day settlement. It earns the trust of both the merchants and the consumers by securing the payment.
Direct debits: Though the direct debits are not so relevant to the merchants, it is commonly used by consumers for predictable and regular payments like subscriptions, where the transaction value is low or it is a recurring kind.
E-wallets: Mention not to say, this is the fastest growing payment type. It is becoming increasingly popular for purchasing the goods online. The PayPal, AliPay are continuing to dominate the e-wallet market at the global level.
Mobile Payments: The M-payments include mobile wallets and direct carrier billing. The rise of smartphones, mobile app development, in-app payments has made direct billing as one of the principal payment methods. It is convenient for the consumers as the process is fast and easier, wherein the customers need to provide the mobile number at checkout. However, the mobile wallet platforms are exclusively operative in the concerned countries and a few of them are going global.
Cash on Delivery: Though the cash on delivery is becoming less popular with the merchants, the method is more adopted in rural areas. The e-commerce in rural India is still dependent on cash on delivery payment mode as they feel it is better to pay once the goods get arrived.
Digital currencies: The digital or the cryptocurrency like the Bitcoin are showing the way into online commerce as in online Magento stores, Prestashop, and other popular e-commerce platforms. Still, it is not in popular use.
In a nutshell, the technology today is advancing in a way to make the mobile payments as the feasible option. Evidently, the mobile industry is experiencing fast growth and innovation accommodating the useful and customer-centric features in the platform or the developing mobile applications. And, the consumers feel convenient to make a purchase through their smartphones as the user experience and the security features improve.
Mobibiz, one of the leading mobility solutions provider for online commerce and enterprises ensures that the money transactions are super-fast with an uncomplicated user experience. For availing secure payment methods for your m-commerce applications, get in touch with mobile app developer experts.
