Alternative payment methods are changing the banking world for the better. Even if you don’t know what alternative payment methods are, chances are you’ve used one before to make a transaction or to transfer funds.
Alternative ways to pay have grown in popularity as the world grows towards a more cashless society, there are now many different types of alternative payment methods used in many countries.
Paysecure decided to do some digging into the number of transactions the most popular alternative payment platforms around the world made in 2023, and ranked 40 of them based on this number of transactions. But they didn’t stop there, the team at Paysecure took their research a step further and found the average number of transactions each of these platforms made during every second of the year!
Check out their findings and prepare to be amazed at the thousands of transactions some of these platforms had every second.
Key Takeaways:
- Alternative payment methods are growing: The staggering transaction volumes of top platforms like UPI (117.6 billion in 2023) and Skrill (49 billion) highlight the rapid shift away from traditional payment methods.
- Real-time payments lead the way: 14 out of the 40 platforms analyzed are real-time payment systems, indicating a strong preference for near-instant transactions.
- Digital wallets hold a significant market share: A quarter of the platforms analyzed are digital wallets, underscoring their convenience and growing acceptance.
- Speed and accessibility drive adoption: Alternative payment methods offer fast transaction times (often instant), 24/7 availability, and improved access for those in remote areas, driving their widespread use.
- Global reach is expanding: Platforms like PayPal and Skrill serve over 100 countries, showcasing the increasing globalization of these payment systems.
Alternative payment methods are are a way to transfer funds and make payments without the use of traditional credit cards, debit cards, or cash. They cover a variety of different types of payment systems including Buy Now Pay Later, mobile payments, real-time payments, vouchers, online banking, and digital wallets. The most common type found on the ranking by Paysecure are real-time payment platforms like UPI, PromptPay, Zelle, and DuitNow; they make up 14 out of the 40 platforms included. The second most common type of payment method, digital wallets, weren’t far behind with a quarter of the platforms. Some of the digital wallets included in the analysis are Skrill, Alipay, GCash, GrabPay, and Klarna.
Which alternative payment methods came out on top? The top 10 payment platforms and their 2023 transactions, per second and in total, can be found below:
- Unified Payments Interface: 3,729.1 transactions per second (117.6 billion total transactions)
- Skrill: 1,553.8 per second (49 billion)
- Pix: 1,331.8 per second (42 billion)
- Alipay: 1,157.4 per second (36.5 billion)
- PayPal: 792.7 per second (25 billion)
- Internet Banking Payment System: 570.8 per second (18 billion)
- GCash: 219.9 per second (6.9 billion)
- MoMo: 215.6 per second (6.8 billion)
- PayPay: 202.9 per second (6.4 billion)
- Immediate Payment Service: 183.9 per second (5.8 billion)
What are the benefits of using alternative methods to make payments or transfer funds? One of the biggest benefits is the speed at which they can make transactions, many of which are instant with money transferring to the designated account within seconds. Alternative payment methods also allow people to make payments and transfer funds outside of banking hours. Another major benefit of these payment methods that many may not consider is that they make banking more accessible for people living in remote locations.
Two of the payment platforms included in the analysis, PayPal and Skrill, each service more than one hundred countries around the world. As of 2024, PayPal can be used in a whopping 165 countries! Do you use one of these alternative payment platforms in your everyday life?
Additional Insights:
- The future is cashless: The massive transaction numbers suggest that we’re moving towards a predominantly cashless society.
- Financial inclusion: Alternative payment methods have the potential to bring banking services to underserved populations, improving financial inclusion.
- Convenience is king: The popularity of these methods is largely driven by the convenience they offer compared to traditional banking.
Overall, the data clearly demonstrates the significant impact alternative payment methods are having on the financial landscape.
