Consumers expect payments to be secure, frictionless and fast. They want to pay using their preferred currency and method, and these often differ, depending on where they are in the world.
Businesses have their own needs, reflecting their unique operating models. Some need to offer recurring billing, others may wish to expand into specific markets and territories. All these differences underscore the sophisticated needs businesses have when it comes to offering optimal payment experiences at both a business-to-business and business-to-consumer level – and they make the case for customisation.
Nuvei offers its merchants connectivity with more global alternative payment methods (APMs) than anyone on the market. But why are local APMs becoming so impossible to ignore in today’s payment ecosystem? – Our Global Expansion Officer Praful Morar discusses this and more with Inside Retail Asia.
The rise in popularity of APMs is a key reason why customization is so important to helping merchants accelerate revenue through payments.
Here are five changes that have directly contributed to the rise of APMs in the global payment ecosystem.
1. Growth in domestic schemes
Born out of a desire for governments around the world to gain independence from card networks, domestic schemes are a key driver of APMs. Domestic payment schemes accounted for 12% of all global payments last year and they’re adapting strongly to the digital environment.
2. The rise of open banking
Underpinning much of the innovation we are witnessing in payments, including the rise of real-time payments, open banking provides a secure and frictionless alternative to paying by card. Open banking enables anyone with a bank account and a mobile phone to make a payment.
3. Growth in cryptocurrencies
While still nascent and not yet a widely adopted payment method, cryptocurrency is slowly gaining traction as major brands like Microsoft, Home Depot and Starbucks are leading the charge in accepting crypto payments.
4. The rise of Buy Now Pay Later (BNPL)
The flexibility and convenience of BNPL have already enjoyed initial success, particularly in the retail sector and with younger shoppers. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 24.5% during 2022 to 2028.
5. Growth of digital wallets
With more consumers being accustomed to living life through the digital lens of a mobile phone, this has translated into the payment space as well. A report by Mordor Intelligence published last year estimated that between 2021 to 2025, the adoption of digital wallet apps will increase by a compound annual growth rate of 27%.
Through its vast capabilities in the realm of APMs, Nuvei aspires to drive higher acceptance amongst merchants of these different payment forms that already have strong user bases in the local areas where they operate. This, in turn, will help accelerate our merchant client’s business and drive incremental revenue.
Read the full article published on Inside Retail Asia here.