Alternative payment methods: 2026 Guide for Businesses

Picture this: a customer is ready to buy from your online store, but at checkout, their go-to payment methods are missing. If they leave, you will lose the sale. It’s a scenario that’s all too common—with cart abandonment rates among online shoppers hitting a staggering 83% globally, and even higher in European countries like France (85%), any point of friction during payment is a major risk. Even in the UK, a significant 77% of online checkouts are abandoned, highlighting the critical need for a seamless payment experience to secure sales.

For merchants, there’s a simple truth: offering the right alternative payment options can dramatically improve checkout conversion. And with solutions like Noda, integrating them has never been easier.

Key Takeaways:

• Alternative payment methods (APMs) are any payment form other than traditional credit/debit cards, including digital wallets, bank transfers, Buy Now, Pay Later services, local payment methods and others.
• Offering a variety of alternative payment options is no longer optional; it's essential for meeting modern consumer demands for convenience, speed, and security.
• Each market has its own preferred payment alternatives – iDEAL (Netherlands), Swish (Sweden), BLIK (Poland), Pix (Brazil).
• Open banking is a powerful and versatile APM that provides a secure, cost-effective, and cross-border online payment solution for businesses looking to scale.

What Are Alternative Payment Methods?

So, what are alternative payment methods? It refers to payment alternatives that fall outside traditional card networks.

In many countries, these are the de facto way to pay for e-commerce. This dominance is perfectly illustrated by the widespread adoption of digital wallets. For instance, as of Q4, 2025, 87% of online shoppers in Germany reported using PayPal, a figure that is similarly higher than in other major European economies like the United Kingdom (70%) and France (73%), cementing its status among the leading alternative forms of payment.

They can be:

• Local — popular within one specific country or region (e.g., iDEAL in the Netherlands).
• Global — accepted across multiple regions (e.g., PayPal, Apple Pay).
• Channel-specific — such as in-app payments or QR-code payments in physical locations.

Why it matters: Each market has types of alternative (online) payment methods that dominate. 

For business: Selling internationally or even expanding in a local market, ignoring these payment channels could mean losing entire customer segments.

Regional Alternative Payment Methods in Europe

Local payment options cater to local preferences, making them essential for global businesses. Here are examples of alternative payment methods in Europe and beyond:

1. United Kingdom – Pay by Bank (Open Banking-Powered)

Strictly speaking, the UK doesn’t have online payment solutions in the same way markets like the Netherlands (iDEAL), Poland (BLIK), or Sweden (Swish) do. Instead, Pay by Bank, an Open Banking-powered solution, has gained significant traction, offering a secure and cost-effective alternative to traditional card payments. Alternative payment providers like Noda are accelerating this shift by enabling seamless Pay by Bank integrations for merchants, making open banking a practical and competitive alternative to cards and wallets in the UK.

2. Netherlands – iDEAL

The Dutch market is dominated by iDEAL, a bank transfer–based system used by the majority of consumers. It is among the most trusted and preferred digital payment options for e-commerce, reflecting the country’s debit-first culture, limiting the adoption of credit cards.

3. Germany – Sofort (Klarna) & Wero (upcoming)

In Germany, Sofort (now part of Klarna) is a widely used online payment method, though PayPal and cards still hold a larger market share. Sofort’s popularity comes from its simple bank-transfer flow and strong consumer trust, making it a common payment alternative offered by merchants. 

Looking ahead, the Wero wallet from the European Payments Initiative (EPI) is being rolled out by major German and French banks. While it is not yet widely adopted by end-consumers or used in e-commerce (so far only accessible through a few PSPs like Worldline or Nuvei), Wero aims to become a pan-European alternative payment system in the coming years.

4. Poland – BLIK

BLIK is a homegrown, mobile-first payment solution based on account-to-account payments widely used for online and in-store transactions. Its QR code and mobile banking integrations reflect Poland’s strong mobile-driven payment culture.

5. Sweden – Swish

The Swedish market is defined by Swish, a mobile app integrated with bank accounts. It is used not only for peer-to-peer payments but also widely adopted by both businesses in e-commerce and physical stores.

6. Nordics (Denmark & Norway) – MobilePay & Vipps

In Denmark, MobilePay is the go-to alternative payment option, while Norway has Vipps. Both are mobile apps directly linked to consumers’ bank accounts, making them essentially A2A payment systems. Their popularity comes from ease of use, instant money transfers, and deep integration into everyday transactions — from retail to e-commerce.

7. France – Cartes Bancaires

The domestic card scheme, Cartes Bancaires (CB), remains the cornerstone of online payments in France. Nearly all merchants must accept it to capture the local consumer base.

8. Spain – Bizum

Bizum has become a household name in Spain. Originally a peer-to-peer app, it’s now a popular choice for online merchants thanks to its simplicity and high adoption rate.

9. Italy – Bancomat Pay & Satispay

Italy’s market is shaped by Bancomat Pay (linked to the national debit network) and Satispay, a homegrown A2A mobile app that allows direct transfers and merchant payments. 

10. Other payment methods/options to consider:

Beyond Europe, key global alternative payment methods include:

• China – Alipay & WeChat Pay: Together, these two super-app wallets cover over a billion users, dominating e-commerce and in-store payments alike.
• Brazil – Pix: A government-backed real-time bank transfer system, Pix has rapidly displaced cash and even card usage, becoming the country’s most popular payment method.
• India – UPI (Unified Payments Interface): UPI enables instant bank-to-bank transfers via mobile apps and QR codes. With backing from the government and near-universal adoption, it has become the default payment method for Indian consumers.
• Mexico – SPEI & OXXO: SPEI is Mexico’s real-time bank transfer network, widely used for e-commerce transactions. Meanwhile, OXXO vouchers allow consumers without bank accounts to pay online purchases in cash at OXXO convenience stores.
• Southeast Asia – GCash (Philippines) & GrabPay (regional): Mobile wallets like GCash and GrabPay dominate in Southeast Asia, catering to millions of consumers who leapfrogged directly into mobile-first payments.
• Canada  – Interac e-Transfer is a ubiquitous bank-backed method for online payments, used by a majority of consumers.
• US  – Venmo is a popular peer-to-peer wallet, now increasingly accepted by merchants.

Top 8 Alternative Payment Methods in 2026

Here’s a rundown of the alternative payment methods shaping commerce in 2026.

1. Open Banking Payments

Open banking enables direct bank-to-bank money transfers via secure APIs, bypassing costly card networks. Unlike traditional bank transfers, open banking payments offer instant verification and settlement, making them particularly attractive for e-commerce transactions. In Europe, PSD2 regulations have fuelled its rise, making it a go-to alternative payment solution.

For example, UK-based open banking platform Noda connects to over 2,000 banks across 28 countries in the EU.

2. Digital Wallets

Digital wallets like Apple Pay, Google Pay, and PayPal streamline transactions with stored payment details. By 2024, digital wallets (including mobile money) dominated global e-commerce, accounting for around 54% of total transaction value—far surpassing all other payment methods.

3. Buy Now, Pay Later (BNPL)

BNPL services have revolutionised consumer purchasing behaviour, particularly amongst younger demographics. BNPL solutions allow customers to split purchases into interest-free instalments, removing immediate financial barriers whilst often increasing average order values.

4. Cryptocurrencies

Cryptocurrencies like Bitcoin offer low-fee alternatives for international payments. Though only 0.2% of e-commerce transactions used crypto in 2024, adoption is growing.

5. Prepaid Cards

Prepaid cards allow controlled spending for consumers without bank accounts but may carry fees. For businesses operating internationally, cryptocurrency acceptance can significantly reduce payment processing costs and settlement delays.

6. Mobile Payment Apps

Apps like Revolut and Wise support money transfer and in-app purchases, requiring internet and linked accounts. Their popularity is driven by superior foreign exchange rates and low fees for cross-border spending.

7. Virtual Cards

Virtual cards are a type of APM that adds an extra layer of security to online transactions. Typically issued for one-time or limited use, they prevent the reuse of payment details even if intercepted. This makes them a trusted option that benefits both consumers and merchants by reducing fraud risks.

8. Direct debit 

Direct debit is a widely used method for recurring payments, allowing businesses to collect funds directly from customer bank accounts. This method improves cash flow predictability and reduces manual payment handling.

9. Domestic card schemes 

These card schemes (e.g., Cartes Bancaires in France) are tailored to local markets and often have high acceptance regionally despite limited global awareness. Offering these ensures merchants meet local customer preferences and maximise conversion rates in specific countries.

10. QR Code Payments

QR code payments let customers scan a code and confirm a purchase on their phone. The speed of settlement depends on the underlying payment method: if the QR code triggers a bank transfer (A2A), funds often arrive instantly; if it’s processed via card rails, settlement times and fees remain similar to card transactions.

Globally, QR code payments are already a dominant trend. India’s UPI processes over 10 billion transactions every month, much of it via QR codes. Brazil’s Pix and China’s Alipay and WeChat Pay have also shown how QR-based payments can replace both cash and cards in everyday commerce.

How to Choose Alternative Payment Methods for Your Business