Are Alternative Payment Methods Better Than Credit Cards?

APMs are slowly but steadily overtaking credit/debit cards as the preferred choice of payment.

XanPay - APMs vs Credit cards

In the past, credit/debit cards were the primary means of going cashless. But all that has changed with the introduction of alternative payment methods or APMs.

But what exactly are APMs, you ask - well, the answer is simpler than you think.

Simply put, APMs refer to any means of making cashless payments that don't require the usage of a credit or debit card. Customers instead make payments using digital wallets or via direct bank transfers.

All of which has encouraged shoppers worldwide to go from card-based payments to account- and QR code-based transactions.

A paper published by PwC estimates that digital wallets will make up for more than 50% of all e-commerce payments worldwide within the next 5 years.

Besides being easier to use, APMs open up a new world of possibilities for consumers and merchants.

From micro-financing, i.e., BNPL, to added security features, there are plenty of reasons why more customers are switching towards APMs.

So, let's take a look at them now, beginning with:

1. Security Issues

There's no doubt that APMs offer superior protection compared to card payments.

One of the reasons is that digital wallets and direct bank transfers do not require you to reveal information related to their credit or debit cards.

You won't even have to carry your card with you - you just have to scan a QR code or show yours to the merchant, and you're good to go. That way, you eliminate the risk of your card getting lost or stolen.

While some APMs still require you to input your card details - most come with various security features such as two-factor authentication and pin code access to protect from unauthorized access and fraud.

Also, don't forget that APMs usually run on mobile devices; and these often come with biometric and pin encryption for added protection.

However, this doesn't mean that APMs are entirely risk-free. Mobile devices can get stolen, and you could still fall victim to an old-fashioned scam.

So, as a rule-of-thumb, it's best to only use your digital wallets for payments related to a transaction you initiated.

2. No Chargebacks

Chargebacks are actions taken by the bank to reverse electronic payments. These usually occur when the customer raises a dispute or fraud claim.

Often, chargebacks are legitimate claims due to errors or fraud, and they can then be resolved amicably - but this is not always the case.

And that's because not all merchants are treated equally. Due to the controversial nature of their business, adult entertainment merchants are classified as high-risk operations.

As a result, they are usually subject to higher fees and increased chargebacks due to the rampant incidences of fraud. Some banks or payment platforms refuse to provide their services to these merchants.

Hence this can make it impossible for them to conduct business. However, by using APMs payment provider such as XanPay, businesses won't have to worry about this.

With XanPay, customers can make payments via digital wallets or direct bank transfers, allowing them to keep their transactions discreet.

Additionally, clear and descriptive billing and automated receipts provide an air of legitimacy that can significantly reduce chargebacks.

3. Synergy with m-Commerce

Move over e-Commerce, there's a new player in town, and that's m-commerce.

Also known as mobile commerce, m-Commerce refers to buying and selling goods over the internet via a mobile device, i.e., smartphones or tablets.

M-Commerce has experienced impressive growth in recent times, with more customers turning to their mobile devices for all of their shopping needs. And this is one of the reasons why alternative payment methods have also become increasingly popular.

E-Commerce companies have developed mobile-friendly apps that allow customers to complete their transactions within a few short steps. And thanks to well-designed software integration, customers won't even have to leave the website to make a payment.

There's no need to invest in infrastructure, and users do not have to worry about handing their credit card information to strangers over the internet.

4. APMs Bring Financial Services To The Masses

While card payments have been instrumental in opening the door for the cashless revolution, one of their primary weaknesses is how they're usually limited to specific segments of society.

Before the introduction of alternative payment methods, unbanked customers could not access such financial services. Hence, leaving them out of the cashless economy, but all of that has since changed.

With APMs, unbanked individuals now have the opportunity to access previously unavailable financial services. Now, throw in the fact that Southeast Asia has a large unbanked population but significant smartphone penetration, and you have all the signs of a potential revolution.

And this is the exact situation in China - a nation with an antiquated banking system and a vast population, where digital wallet payments are used in 95% of transactions in the country. Rather than adopting card payments, China has skipped them entirely and made APMs the de-facto payment method.

And now, as the Asia Pacific region spreads its wings and embraces globalism, we can expect to see consumers and merchants alike shifting towards APM platforms.

5. Superior Localization

Payment localization refers to providing international customers with their favored payment methods. And it is crucial if a business intends to expand its presence into overseas markets.

Unlike credit/debit card payment facilities, APMs perform significantly better when it comes to localization - this is because APMs are not subject to the same infrastructure and compliance issues as credit/debit card systems.

Additionally, businesses operating in an international market also do not have to worry about creating local entities to receive such payments.

Instead, all that is needed is a simple QR code that can be displayed or scanned from the customer's device - thus providing customers with convenient and familiar payment solutions that build up their confidence.

6. Turning To APMs Helps Merchants Reduce Payment Friction

A frictionless payment process is sure to be appreciated by both customers and merchants alike.

From the customer's perspective, it minimizes wait times and keeps things convenient, thus minimizing stress and providing a fuss-free experience for everyone.

And from the business side, reducing payment friction translates into lower cart abandonment, satisfied customers, and more repeat business in the long term.

All of this is why APMs are slowly but steadily overtaking credit/debit cards as the preferred choice of payment.

Rather than bothering with cards and PINs, transactions can be quickly completed by scanning a QR code or providing one - thus keeping things smooth.


The growth of digital payments and the uptake of alternative payment methods is something all businesses should take into account. Failing to do so may result in an organization being left behind by the digital revolution.

With XanPay, you now can future-proof your business and pave the way for tomorrow's customers. From customizable widgets to minimal transaction fees, XanPay is the ideal partner for organizations looking to get an edge on their opponents.

XanPay - growth of social commerce

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