The Anthropology of Payment Methods
Enterprise businesses need a complete understanding of how their customers want to pay in their major markets in order to optimise their payments setup.
The key here is conversion
APEXX currently has an ever expanding suite of over 120 integrated 'Alternative Payment Methods'. In a commercial environment where cash and card no longer simply dominate the payments landscape it is essential for enterprise merchants to have a thorough understanding of which APMs are popular in which of their key markets, and to have a gateway that is technically capable of giving them access to all of the methods they need instantly.
Customers are more likely to go through with a purchase using a payment methods they are familiar with and like using. Consequently it is becoming ever more vital for merchants to include popular new payment methods in their payments acceptance setup.
Why are APM’s important?
If your business has a thorough understanding of the types of payment methods it's customers like to use in each of its major markets the uptick in conversion of sales can be considerable. In terms of the anthropology of payments we do not pay the same the world over and the forward-thinking enterprise merchant will alway be looking to integrate more locally trusted payment methods to drive their sales.
Digital/mobile wallets Alipay and WeChat Pay dominate in China, taking 48% of point of sales in 2019. The local dominance is followed by a shortlist of competitors outside China like Apple Pay, Google Pay, Samsung Pay and Amazon Pay. Mobile and digital wallet adoption is projected to keep evolving through 2023 out of the declining users’ reliance on cash and card-based payments. The digital payment revolution is in motion and fast with the technology penetration and influence on younger generations. China, for instance, has significantly younger populations than Europe and the United States. As of end-2018, around 73% of Chinese internet users paid for their transactions with online payments services, an 18% increase on the previous decade.
Buy Now Pay Later
A report on the Buy Now Pay Later industry released by PYMNTS.com showed that age groups interested in Buy Now Pay Later services were dominated by shoppers between the ages of 22 and 44 with a share of 87%. Meanwhile, Afterpay reveals that 75% of its customers are aged 17 to 37. In October, almost half shoppers in the U.S between the ages of 34 and 44 have used the BNPL services according to PYMNTS trackers.
Forward thinking enterprise merchants now need to consider BNPL solutions as an essential part of their payments mix. The more progressive merchants in this class will, in fact, now have a mixture of BNPL solutions competing for consumer usage as this method of payment continues to make inroads in the buying habits of the younger generations.