A Macropay review on how APM’s are shaping the way we pay
Many facets of life radically changed during the onset of the pandemic; according to a Macropay review, one of which is payments processing. Because global restrictions were applied on an unprecedented scale, the society at large witnessed cascading effects – from economic, to financial, and even personal aspects of life.
Schools and other establishments closed, people got locked inside their homes, and the world as we knew it screeched to a halt in a heartbeat. Businesses were forced to close temporarily, and alas – the people turned to the digital space to build a sense of community.
Entrepreneurs, both large and small, obliged to the new normal. As a result, the once brick and mortar businesses soon populated the online landscape as they moved to the web.
However, the stringent quarantine measures also caused a curious shift in the consumer mindset. It left little to no legroom for the customers to cater to merchants’ requests. And with the sudden increase in the supply of businesses online, buyers began refusing to meet the sellers halfway in their preferred payment methods. After all, there will always be someone else willing to provide the product or service with a more flexible payment system.
Here are the ways Alternative Payment Methods (APMs), or Local Payment Methods (LPMs), reshaped and are continuing to shape the payments processing scene.
Consumers’ convenience of choice
Businesses equipped with Alternative Payment Methods significantly reduced the risk of drop-offs through another value proposition: the convenience of choice. Such added value is so vital that it is estimated in the UK that 67% of consumers would back out if the payment process were ineffective.
Because ease of the whole purchase journey heavily influences consumer behaviour, customers tend to prioritise businesses that accept APMs. On the other hand, these APM-enabled establishments enjoy the benefit of closing transactions faster, giving way for higher sales volume.
Some merchants using Macropay, the APM gateway of choice in many European countries and beyond, have already seen impressive overall growth. In a Macropay review, the change was attributed to the increased volume of customers and the orders closed. Such an increase in sales volume was made possible by simplifying many APMs into a single checkout platform. With access to APMs such as giropay, iDeal, Multibanco, EPS, Bancontact, Sofort, and Przelewy24, and reliable open banking systems, customers get a more streamlined checkout process.
This only goes to show that APMs improve the whole user experience during the purchase journey.
Digital security as part of user experience
As businesses migrate most of their operations online, consumers become more reliant on services and products available on the internet. Remember the importance of user experience discussed in the previous section? That effect compounds even more when a customer is at ease that their transaction is protected from fraud and other illicit activities.
Alternative or local payment methods incorporate anti-fraud systems in their payment gateways to counteract the possibility of fraud. In addition, many platforms use multiple layers of verification and other security measures to ensure that the customer journey remains pristine and free from the trouble of online schemes.
Increase in usage and popularity of APMs
With the two consumer benefits mentioned above, the increase in demand for APMs is a welcomed logical effect. We are witnessing more establishments integrating APMs. People are adopting the technology at a breakneck pace and tech giants are here for it, too.
Starting from online gateways and evolving into consolidated systems, APMs have found their way into digital wallets. These fintech wonders eventually found their way to our phones and wearable devices. In the past years, popular brands made a move to allow secure payments simply by bringing devices near a POS. Nowadays, it’s almost a requirement for mid-range to high-end devices to support such features.
In fact, studies forecast that by the end of 2024, 47.9% of all online transactions will be made through APMs.
Business benefits: borderless payments
While consumers are at the centre of the benefits mentioned so far, businesses also enjoy a significant piece of the cake when it comes to APMs. As discussed in a review a while back, pioneers of alternative payment methods such as Macropay already saw overall growth in the organisation. Further highlighting that people tend to patronise and gravitate towards services that prioritise their convenience and security.
However, far more opportunities open when an enterprise decides to incorporate APMs in its operations.
Due to the wide range of payment systems catered in a gateway, previously untapped markets are made accessible to businesses. Those who were restricted by traditional banking services can now elevate into a more competitive business.
But with larger-scale services such as Macropay, more demographics become untethered. Transactions from consumers using other currencies in foreign regions are enabled through a single integration.
All the conversions, jurisdictional processes, and different technical setups are taken from the entrepreneur’s hands through one contract. This way, the business can focus on what they do best – serve their customer right.
This novel way of conducting open banking opens possibilities for business expansion unrestricted by borders and associated bureaucratic processes.
APMs are the new normal
While the world is seeing a lot of improvements in the global health situation, it is still far from where it was before the pandemic.
During the early days of the pandemic, innovators developed technology that puts convenience and safety on top of the priority list, as well as allows both their team and their customers to interact remotely. One such example is the stride in APM technology.
As people slowly reintegrate into the world outside their homes, their need for convenience remains through their phones and wearable devices. And for the right reasons, too, as payments have become significantly safer with technology that allows people to transact without much physical contact.
APM’s can ensure convenience and safety during checkouts, regardless of the pandemic timeline. The customer can simply pay using APM’s if the businesses they transact with are equipped with APM & open banking gateways like Macropay’s payment solution.
