🔄 Last update on July, 31st 2025
1. Financial Inclusion: Reaching the Unbanked and Underbanked
Alternative payment methods are breaking down barriers to digital participation. In regions where banking infrastructure is limited, mobile money and carrier billing are enabling millions to access financial services and digital content for the first time.
Considering that only a relatively small percentage of the global population owns a credit or card (55%, according to the Findex Database of the World Bank*), while 71% (Statista) has access to a smartphone in 2024, these solutions are not just convenient, they’re transformative. They promote inclusion, support local economies, and help telcos and merchants tap into underserved markets.
2. Convenience That Drives Conversions
Consumers today expect speed, simplicity, and reliability. Alternative payments deliver just that. Whether it’s a one-tap mobile money transfer or a seamless carrier billing checkout, users can complete transactions instantly—no bank forms, no card numbers, no friction.
For businesses, this frictionless experience means higher conversion rates, fewer abandoned carts, and improved customer satisfaction. Convenience becomes a competitive edge.
3. Reduced Costs, Greater Efficiency
High banking fees and transaction charges can be a major burden—especially in low-income or emerging markets. Alternative payment methods typically come with lower transaction costs and fewer overheads, offering cost savings for both businesses and consumers.
Merchants can process payments more efficiently, while reallocating resources to product development, marketing, or customer support. It’s a smarter way to scale.
4. Enhanced Security and Trust
Security remains a top priority for users when making digital payments. Alternative methods like mobile money and DCB incorporate strong encryption, multi-factor authentication, and device-level protections like fingerprint or facial recognition.
Carrier billing also includes robust fraud detection systems, reducing the risk of unauthorized transactions. These built-in protections build user confidence and encourage repeat purchases.
5. Speed That Translates Into Revenue
Time is money—especially in digital commerce. Traditional methods like credit cards often involve tedious form-filling or redirects. APMs streamline the process with instant, in-app transactions that reduce friction and encourage impulse purchases.
This speed has a direct impact on business outcomes. Companies using alternative payment methods consistently report higher conversion rates compared to traditional options. This is especially interesting for merchants, that can benefit from a better conversion rate (5 times higher), compared to traditional payment methods.
6. Global Reach Without the Headaches
Alternative payment methods help businesses overcome geographical and financial limitations. They make it possible to serve customers across borders, without relying on traditional banking networks.
This global accessibility is key for telcos and digital merchants aiming to grow internationally. With localized payment options, businesses can better meet the needs of users in Latin America, Africa, Southeast Asia, and beyond—expanding reach and revenue.
7. Made for Mobile Commerce
Mobile is the future of commerce—and alternative payment methods are designed with mobile-first users in mind. As m-commerce (representing 59% of the total e-commerce worldwide in 2025, according to Statista) and app-based ecosystems grow, these payment solutions align perfectly with how modern users browse, shop, and subscribe.
From gaming and video streaming to subscriptions and microtransactions, APMs allow users to pay without leaving the app, resulting in smoother experiences and more loyal users.
The Bottom Line: APMs Are the Future of Digital Payments
Alternative payment methods have gone from optional to essential. They provide the flexibility, reach, and speed that today’s consumers demand—while helping telcos and merchants unlock new growth opportunities.
Whether you’re looking to increase conversion rates, reach new markets, or improve user experience, offering the right payment methods is a strategic move that pays off.
Want to learn how to integrate alternative payment methods into your digital strategy?
Our team of experts is here to help you unlock the full potential of mobile money, carrier billing, and more.
*Data is from 2021, latest report available from the World Bank
