Payment methods

Payment methods are the ways customers pay for goods or services, and merchants receive those payments. They include cash, payment cards, bank transfers, digital wallets, direct debits, local payment methods, and other online or offline payment options.

As e-commerce, fintech, and digital banking continue to evolve, the number of available payment methods continues to grow. New payment formats make transactions faster and more convenient, while established methods such as cards and bank transfers continue to improve in speed, security, and user experience.

What are the types of payment options?

There are two payment method types – traditional and alternative. The traditional methods of payment are:

• cash;
• credit & debit cards;
• direct debits;
• cheques;
• standard bank transfers.

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Alternative payment methods

Alternative payment methods, or APMs, are payment options that do not rely only on cash or major card schemes. They usually reflect local customer habits, banking infrastructure, and regional payment preferences.

Common types of alternative payment methods include:

• Digital wallets — payment options such as PayPal, Apple Pay, Google Pay, and other wallet-based services.
• Local payment methods — country-specific payment options that are widely used in a particular market.
• Bank transfers and account-to-account payments — payments made directly from one bank account to another, often through online banking or open banking rails.
• Prepaid cards and stored-value accounts — payment instruments funded in advance.
• Buy now, pay later (BNPL) — payment options that allow customers to split or delay payment.
• QR code and mobile payments — payment methods often used in markets where mobile-first commerce is common.

Alternative payment methods are especially important for merchants expanding internationally. In some markets, local payment methods are more popular than international cards, so offering only card payments can limit conversion.

Customers often use APMs to pay for online purchases. For instance, alternative payments account for 49% of the total annual volume in Europe, the Middle East, and Africa, and about 58% in the Asia-Pacific region. A business can lose from 20% to 30% of sales in these regions if it doesn't offer customers the preferred APMs. Supporting different payment methods, including alternative ones, can be a significant advantage for your business's expansion.

Payment options for e-commerce

The right choice of payment options allows businesses to increase conversion and get more sales. Customers should be able to pay in their preferred payment methods. Otherwise, they'll likely leave your site or abandon their cart without completing their purchase.

However, adding every possible method is not always the best approach. The right payment mix depends on several factors:

• where your customers are located;
• what devices they use to shop;
• whether you sell locally or internationally;
• your average transaction value;
• your business model and risk profile;
• your target markets’ payment habits;
• your payment providers’ coverage and fees.

For example, card payments may be enough for one market, while another may require digital wallets, bank transfers, or local payment methods to achieve acceptable conversion rates. A merchant expanding into several regions usually needs a more flexible payment setup than a business operating in one country.

Payment methods supported by Corefy

Corefy helps businesses connect to and manage multiple payment methods through a single payment infrastructure layer. Instead of handling every provider and integration separately, companies can use Corefy to access payment options across cards, wallets, bank transfers, local methods, and other payment flows.

Corefy offers 600+ ready-made integrations with payment providers and acquirers worldwide, helping merchants, PSPs, and payment businesses expand payment coverage, manage transaction routing, and adapt their payment setup to different markets and customer preferences.

With Corefy, payment methods can be managed as part of a broader payment infrastructure — alongside routing, cascading, reporting, reconciliation, and provider connectivity.