Offering relevant Alternative Payment Methods (APMs) for business growth

On my recent trip to São Paulo, I was immediately struck by the prevalence of PIX as the primary payment method among Brazilians. This observation was further reinforced during our research trip. It's worth noting that this represents a shift from a few years ago (before 2021) when cash and Boleto Bancário were the preferred payment methods in Brazil.

A homeless person asking for donations via PIX in downtown São Paulo

Several factors contribute to the business growth success of a market. Offering relevant Alternative Payment Methods (APMs) to your local users or customers is one of them. Unfortunately, this aspect is often overlooked by companies.

Here are some examples of key payment methods in different countries (as of today):
🇧🇷 PIX for Brazil
🇮🇳 PayTM for India
🇵🇭 GCash in the Philippines
🇻🇳 MoMo in Vietnam
🇮🇩 GOPAY and Dana in Indonesia
🇨🇳 Alipay and WeChat Pay in China
🇵🇱 BLIK in Poland
🇰🇪 MPesa in Kenya
🇨🇮 Mobile wallets such as Orange Money, MTN and Wave in Western Africa like Côte d’Ivoire
🇧🇩 BKash for Bangladesh
🇵🇰 Easypaisa and JazzCash in Pakistan

Not all countries have one (or two) prominent payment methods like the ones listed above. Instead, they may have a rather fragmented payment landscape with no clear key player (as is the case in the US).

Also, key local payment options will constantly evolve as existing solutions improve and new technologies or payment services continuously emerge. In the list above, apart from MPesa, which has been the dominant player in Kenya for over a decade, the other payment methods have only gained popularity in the relevant markets in recent years, replacing standard payment methods. It’s interesting to see all the examples mentioned are digital payments, indicating the direction we’re heading in.

While cash and major international credit or debit cards may still be popular in some countries (e.g. debit cards are still prevalent in Mexico), it’s crucial to stay updated with the increasing use of APMs. Additionally, it’s worth noting that local debit or credit cards in some countries may not allow payments for international services like yours.

Inflexible payment systems can hinder growth potential, while implementing the right payment strategies can accelerate growth. Stay ahead of the curve by embracing the evolving payment landscape and tailoring your approach to meet the needs of your target market.