E-commerce Merchants are always in search of Alternative Payment Methods (APMs) for serving their customers. There are most popular alternative payments methods like Bill Me Later, PayPal and Google checkout. As everything has something good and bad same like that these APMs also have pros and cons of their own. Today we will discuss about the different Alternative Payments Methods.
There are most Alternative Payments Methods that cover claims, they are very careful to increase these assertions with some hard facts based on actual vendor experiences. For these payments methods case study is very popular marketing tool, because if your company’s business model are similar to any case study then you can test the particular APM. There are many Professional Magento Extensions which have this partial payments functionality.
Types of Alternative Payment Methods
On Credit: APM provides platform for complete sales transactions by offering credit terms to the purchaser. They run totally outside the domain of credit card networks. Under this model they (APM) provide credit and later invoices to consumer for any purchase. One of the most important examples of this kind of payment is Layaway Payments method. This recurring payment method provides web-store owners the facility of providing online payments in installments to their customers. By using this Magento Partial Payments webstore vendors can setup different payment options for their customers, they can charge layaway service fee, describe number of installments, max time duration etc. customers can track their installments from their account and can also pay the installment amount from their account.
Value Added Propriety Gateways: Value added a proprietary gateway is a platform that acts as intermediaries among the consumer and merchants, who uses standard credit card and Automated Clearing Home (ACH) networks. In this method payments for sales are taken by the Alternative Payments Methods directly from buyer’s credit card. For using it buyer creates an account on APM’s website, when buyer purchase anything the amount is deducted from his checking or credit card account by APM. In case of PayPal deductions are made from checking accounts, while Google checkout charges the buyers credit card.
At the end both the Alternative Payments Method has their primary benefits for their users. For instance PayPal is enjoying the huge market share of more than 150 million users.