Ready or not, alternative payments are coming, and they’re coming fast. While consumers still use cash, a credit card or a debit card in most of their transactions, alternative payment methods are starting to garner a significant share of the market. There are, however, some options that are more prevalent than others, and some that are growing at a faster rate.
Currently, the mobile wallet space is fascinating. Google and Apple have both launched their own wallets, Google Wallet and Apple Pay, respectively. Both products have the capability to store cards, and will allow consumers to make quick, seamless transactions with the touch of a finger, rather than the swipe, or insertion, of a card. Consumers have demonstrated a clear desire for these mobile wallets and, in time, they could replace physical wallets.
There are also some peer-to-peer alternative payment methods that have taken hold in the market. A lot of consumers have started using Venmo to pay others for simple things, or for bills, and it may only be a matter of time before merchants start accepting Venmo as an acceptable payment option. Venmo stores virtual currency in their app, however if a consumer links their bank account to the app, they can, at any time, transfer the funds from the app to their account.
Snapchat also launched Snapcash as a way for consumers to do the same thing. Snapcash lets users exchange cash instantaneously, but rather than having consumers store virtual currency, it lets them transfer money directly from one bank account to another. It’s expected that other social networks will follow this model. A lot of them have already cultivated a loyal following, and by launching alternative payments methods, they will be able to offer those loyal followers an additional, appealing feature.
Many different alternative payment methods are still relatively new, and consumer adoption won’t happen overnight. But throughout the adoption process, Cardinal will support these alternative payment options, and will be able to ensure that they are secure. With One Connection to Cardinal, we can Drive your Digital Commerce.