As global and digital markets expand, innovative alternative payment methods are replacing traditional cards and cash, particularly in emerging regions like Africa, Asia-Pacific, and Latin America. Here, consumers are accustomed to making payments via smartphones, driving companies with global ambitions to adopt these new methods to tap into the e-commerce boom.
The preference for alternative payment methods in emerging markets stems from lower card usage compared to the West. For example, in India, digital wallets and account-to-account transactions are favored by 65% of the population, while only 11% use credit cards according to data published in 2023 by FIS Worldpay. This trend is echoed by the rise of Buy Now Pay Later (BNPL) transactions, particularly in the Asia-Pacific region.
What Alternative Payment Providers Are Leading The Way?
A variety of alternative payment methods now exist including a growing number that only require a user’s mobile number. Some are developing strong reputations such as Stripe Connect, Authorise.net, Square Payments, Apple Pay, BlueSnap, and Razorpay. However, leading the way is Boku which distinguishes itself by offering over 200 payment methods in 60 countries, processing over $9 billion annually.
It is continuously expanding and enhancing its local payment method (LPM) offerings and is now recognized for its global presence and robust infrastructure. Boku facilitates efficient cross-border payment settlements, helping global merchants connect with new customers seamlessly.
Mobile Payments
Consumers are also increasingly aware of Boku as it penetrates new markets. In 2021, Boku launched the M1ST Payments Network, claiming it to be the world’s largest mobile payments network, simplifying the acceptance of mobile payments for retailers and merchants. The launch aligned with the increasing trend of online and mobile shopping, entertainment, and gaming with significant growth in middle-class consumers in emerging markets.
For example, in iGaming, Boku is now a widely accepted payment method, with CasinoAlpha detailing how this service works and its benefits for players. Like an increasing number of other casino payment methods, Boku offers users a safe and secure alternative to funding customer accounts without the need for a debit/credit card. While there are some limitations, such as not being able to withdraw using the platform, its expansion as a payment method now sees the likes of Facebook, Apple, Google, Netflix, PayPal, and Sony using it.
What Does the Future Hold?
Technological advancements and changing consumer behaviors will continue to see mobile payments evolve. Key trends beyond 2024 include the increased adoption of contactless payments driven by NFC technology, enhancing convenience and speed. Biometric authentication methods, such as fingerprint, facial, and iris recognition, will improve security and personalization. And the rise of blockchain and cryptocurrencies will provide secure and transparent transaction methods, increasing mobile payment platforms’ support for digital currencies.
Seamless cross-border mobile payment solutions will be essential as the global economy becomes more interconnected. Similarly, regulatory evolution will be necessary to ensure security, privacy, and integrity in the evolving mobile payment landscape. The future promises increased convenience, security, and innovation, leading to a more integrated, user-friendly, and secure mobile payment ecosystem.
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