Be it international payment or domestic transfer, the way we make transactions has continuously evolved. Initially, in the 1990s and 2000s, we only had bank transfers to send and receive payments. Later, credit cards and debit cards emerged.
However, everything has changed these days. Depending on the nature of the transaction, we have many alternative payment methods to choose between.
In this blog, we will look into the top 7 alternative payment methods for different transaction types.
Also, we will discuss:
- What are alternative payment methods?
- Types of alternative payment methods
- Benefits of accepting alternative payment methods?
- Way to choose the best alternative payment method for your business
What are Alternative Payment Methods?
An alternative payment methods (APM) refers to a method of payment other than the major ones, such as traditional bank transfer, cash, or credit cards. APMs offer increased flexibility, and security, and often cater to specific regional preferences.
To talk a little about its history, the emergence of alternative payment methods began with PayPal, a transfer service that allowed users to transmit low-cost worldwide payments.
Then, several other methods grew including Alipay, Apple Pay, Google Pay, and Stripe.
Alternative payment options have grown in popularity over recent years for a variety of reasons. One of the main causes of the expansion is that consumers’ payment trends are changing.
They no longer want to be limited by traditional ways of payment and prefer a quick, hassle-free payment experience.
Furthermore, payment technology has advanced tremendously, making it easier for shops to integrate other payment options.
Read about: Top Online Payment Methods Across The World.
Types of Alternative Payment Methods
Alternative payment methods can also be categorized into several types. Some of the major types include:
Digital and Mobile wallets
The first and major types of alternative payment methods are digital wallets and mobile wallets. Digital wallets refer to such wallets which can be accessed from any device.
On the other hand, mobile wallets can only be accessed from the mobile. Some of the popular wallets include: Google Pay, Samsung Pay, Apple Pay, Paytm, etc.
Buy now, pay later (BNPL)
BNPL is a contemporary alternative payment mechanism that enables consumers to buy goods and services without having to pay the entire amount up front.
Customers can make payments in Installments. For instance, a buyer who spends $1000 on an item can pay for it in four $250 interest-free payments.
It is mostly used by e-commerce and retail businesses to increase customer conversion.
Some most popular BNPL Providers are: Afterpay, Affirm, Klarna, etc
Cryptocurrencies
Using cryptocurrency as an alternative payment method Is growing these days.
The major benefit is it facilitates direct transactions between users, eliminating the need for intermediaries like banks or payment processors.
Also, cryptocurrency transaction fees are often significantly lower, especially in international transfers.
Cryptocurrencies are perfect for cross-border transactions without the requirement for currency conversion or related costs because they are not restricted to any one nation or currency.
Some most Popular cryptocurrencies include Bitcoin, Dogecoin, Coinbase, etc.
Neobanks:
Another popular alternative payment method is using neobanks. Neobanks are fintech companies that offer online-only financial services through mobile apps and websites without physical branches.
The use of Neobanks has been rising gradually in recent years because of the convenience and hassle-free transaction process.
Some popular neobanks include Walcy, Revolut, Chime, Nubank etc.,
Read about: Best Neobank for Business Transactions in 2025.
Online Payment Platforms
The most popular type of alternative payment method is online payment platforms. These platforms offer everything one needs to make a payment.
From payment processing to payment gateways, it ensures everything is working properly.
Online payment platforms are computerized systems that allow people and companies to transfer and receive money online.
In online transactions, they serve as middlemen, enabling the movement of money between buyers and sellers.
Some of the most common online payment platforms include PayPal, Stripe, Wise, and Payoneer.
Read about: Top Online Payment Methods Across The World.
Benefits of Accepting Alternative Payment Methods
Specific payment methods offer their unique benefits. However, some most common benefits include:
Enhanced Customer Experience
APMs often provide a faster and more seamless checkout experience compared to traditional methods which creates a positive image for the customer.
Moreover, APMs also have more payment choices, which allows businesses and individuals to select the best fit.
Increased security and fraud prevention
As compared to traditional banking methods, Alternative ones have robust security features and fraud prevention measures.
Some APMs have built-in security features like tokenization and biometric authentication, which can help reduce fraud and chargebacks.
Cost efficient
Especially in cross-border transactions, opting for the APMs costs way less than the traditional transfer.
Certain APMs feature cheaper transaction costs than conventional credit card payments, even for domestic pay, which helps businesses save money.
Time efficient
Another major benefit of opting for APMs is to save time on transactions. Most of the APMs offer fast transfers which help to improve cash flow and daily operation.
Global Reach and Expansion
Also, another benefit of choosing APMs is their global reach. With most traditional banks operating within a single territory, causing issues in cross-border payment, APMs allow individuals to make easy payments across the world.
It ultimately helps in expanding business internationally.
Top 7 Alternative Payment Methods in 2025
After Knowing the benefits, let’s find out the best APMs in the world to date.
Walcy
Walcy ranks first among alternative payment methods since it enables businesses to keep and manage cash in many currencies from a single account.
This removes the need for several bank accounts in many countries, hence simplifying accounting and reconciliation.
Moreover, it facilitates faster and often more cost-effective international transfers compared to traditional transfer methods.
Lastly, Walcy offers competitive exchange rates, potentially reducing the costs associated with currency conversion when making or receiving international payments.
Read about: Best Multicurrency Account: What Is It And How It Works?
Paypal
PayPal is the most popular and one of the oldest alternative payment methods. It is a well-known and internationally recognized brand with a lengthy history of online payments.
With just an email address and some basic information, creating a PayPal account is quick and simple.
Moreover, PayPal supports various funding sources, including bank accounts, credit cards, and debit cards, giving users flexibility in how they pay.
Additionally, it also offers several tools for business, including invoicing, payment buttons, and merchant services, making it a comprehensive solution for e-commerce businesses.
Read about: Top 10 Safe PayPal Alternatives For Freelancers In 2025
Apple pay and Google pay
If you are looking for a wallet as an alternative payment method, Apple Pay and Google Pay are the best.
One is built for Android devices and the other for IOS, both offer quite similar services. They are best suitable for small-volume transactions, especially for online shopping.
Stripe
Be you a freelancer or a business, Stripe is your all-in-one solution, making itself the best APM of 2025. It offers Integrated payment options for every type of business.
Stripe is well known for its reliable and thoroughly documented APIs, which make it simple for developers to include payment processing into their apps and websites.
Moreover, it is constantly innovating and updating its platform with new features and technologies, staying ahead of the curve in the fast-paced world of online payments.
Lastly, it is accessible from most of the countries worldwide and also supports multiple currencies.
Payoneer
Payoneer has presented itself as a leading alternative payment method, particularly excelling in facilitating cross-border transactions for freelancers, online sellers, and businesses operating internationally.
It accepts several different currencies and operates in more than 200 nations and territories.
This extensive reach makes it ideal for businesses and individuals with international clients or customers.
It is also faster and cheaper than other methods. It is the best choice for freelancers and online workers.
Revolut
If you are looking for a large transfer across the border, Revolut could be the best option.
Revolut allows users to hold and exchange over 30 currencies at interbank exchange rates, often with minimal or no fees.
For tourists, expatriates, and companies doing business with foreign customers or suppliers, this is a huge benefit.
Moreover, it offers a wide range of financial services beyond just payments, including budgeting tools, savings vaults, stock trading, cryptocurrency exchange, and even travel insurance.
Cryptocurrency
Lastly, Cryptocurrency is also becoming one of the top alternative payment methods in the upcoming time. To date, it has not yet achieved mainstream adoption as a primary payment method.
However, if adopted as a major payment method, it will change the payment landscape.
Because they don’t require middlemen like banks or payment processors, cryptocurrencies function on a decentralized network, which lowers transaction costs.
Additionally, because blockchain technology is decentralized, bitcoin transactions are very safe and impervious to censorship and fraud.
Read about: Online Payment Security: Best Practices to Keep Your Transactions Safe
Method to Choose The Best Alternative Payment Method?
Selecting the appropriate alternative payment method (APM) is essential for improving client satisfaction and streamlining your company’s payment operations.
You must conduct thorough study before deciding on the finest alternative payment option for your company.
Try to understand your own targeted customers at a very first. Identify their, demographics, payment behavior, and location they are located.
In the second step, identify your business need; whether you need to make large transactions, small transactions, cross-border payments, integration requirements, security and compliances, etc.
Then after, evaluate the available alternative payment methods. For this, you can consider popular wallets, neobanks, and online transfer methods. Compare the fees, time, limit, and other features and choose the best fit.
Read about: 5 Best International Business Accounts | Open From Anywhere
Conclusion
To sum up, APMs cater to the changing needs of consumers and businesses alike, providing enhanced flexibility, security, and often lower transaction costs.
From digital wallets and BNPL services to cryptocurrencies and neobanks, the options are numerous and varied.
The top 7 APMs discussed – Walcy, PayPal, Apple Pay/Google Pay, Stripe, Payoneer, Revolut, and Cryptocurrency – each offer unique advantages. One has to be wise when choosing their best payment method.
The best approach is to understand your customers and business needs, evaluate the available APMs, and choose the methods that best align with your specific requirements.
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