ALTERNATIVE PAYMENT SCHEMES

Alternative Payment Method (APM) schemes do not run directly from bank or over card rails. Although bank to bank is possible in this model (e.g. Open Banking), there is usually an intermediary such as a Platform or other Third Party that acts as an intermediary and often a temporary store of value to aid the transfer of funds. 

This type of payment covers any payment that a customer doesn't make using a cash or a traditional debit or credit card.
This includes prepaid cards, mobile payments, e-wallets, instant bank transfers, and deferred payment or ‘buy now, pay later’ instant financing. 

Alternative payment methods have increased in popularity with the advent of 'Bigtech', providing consumers with faster and more convenient ways to pay. 

Alternative payment methods that many consumers and merchants are familiar with include: 

Klarna
PayPal
Apple Pay
Alipay
WeChat Pay 

In China, Alipay and WeChat Pay dominate the market with QR Code based technology, whereas in Europe companies such as Nets, iDEAL and Klarna have a growing market share.