Alternative payment methods
DocsBetaLast updated: February 13th 2024, @ 10:53:41 am
Important: Alternative payment methods is a beta integration. Send feedback to apm-paymentfields-support@paypal.com.
PayPal's alternative payment method (APM) options help payers across the globe pay with bank accounts, digital wallets, and other payment methods. You can accept and reconcile APM payments across borders with a single integration into the PayPal Commerce Platform (PPCP). For example, a payer in the Netherlands can use iDEAL to make a payment on your site, and a payer in Belgium can use Bancontact to make a payment on the same website.
Integrate alternative payment methods so you can:
- Collect customized payer information.
- Offer checkout in your payer's locale.
- Enhance conversion rates and trust.
- Access new payers and markets.
Payment category
Paypal supports the following types of APM:
| Payment type | Description |
|---|---|
| Bank redirect | Payers use their bank account to pay online. PayPal redirects the payer to their bank's website or mobile app during checkout to securely complete the payment. |
| Direct banking | Payers transfer money over traditional banking rails. Transfers can take seconds or several business days, depending on the interbank payment system. |
| Voucher | Payers complete online payments at authorized in-person locations, such as convenience stores or ATMs. Payers receive a voucher at checkout that they take to a participating location to complete the payment. |
| Digital wallets | Payers complete online payments using an app on their mobile device. Most digital wallets use biometrics to authenticate payments online, which increases conversion rates and reduces fraud. |
| Deferred payment | Payers defer the payment for their order. This form of payment is also called Buy Now, Pay Later. Merchants are paid upfront and the payer pays in full or by installments at a later date. |
Payment method behaviors
Each APM is defined by the following list of behavioral characteristics:
Payment type
- Push payment: The payer sends money to a payee.
- Pull payment: The payer authorizes the payee to debit funds from the payer's account.
Examples
- Bank transfers are a type of push payment. The payer gives explicit instructions to their bank, such as the amount and destination of the payment.
- Direct debits are a type of pull payment. The payee asks their bank to pull an amount from the payer's bank account. In this instance, the payee controls the amount and destination, rather than the payer.
Funds availability
- Instant availability: A near-immediate or immediate transfer of funds between payer and payee.
- Delayed availability: The movement of funds is delayed between payment initiation and completion.
Examples
- Bank transfers in some countries have an instant payment infrastructure that supports near real-time transfers. Examples include Faster Payment Service (FPS) in the UK, and SEPA Instant Credit Transfers in the EU.
- Voucher-based payments are non-instant. The funds are available immediately, but the transaction is not instant because the payer uses the voucher later. For example, payers who pay with Boleto receive a voucher online, and complete the payment offline by scanning the voucher and paying in-person at an authorized location, such as a convenience store or an ATM.
Payer flow
- Direct: The payer chooses a payment method during checkout on the seller's checkout page.
- Actions
- Redirect: The payment flow redirects the payer from the seller's checkout page to the payment method's own experience to confirm the payment.
- Offline: The payer needs to complete an additional action, such as paying offline or scanning a QR code.
Examples
- Redirect-based payment methods like iDEAL redirect the payer to the native online banking environment of their own bank to log in and approve the payment. The payer returns to the seller's checkout page after approving the payment.
- Automated clearing house (ACH) transfers are a direct payment method that a payer can use during checkout. The payer stays on the same checkout page for the full journey to complete the payment.
- Boleto is an offline payment method that requires the payer to pay for a voucher at an authorized location.
Important: Instant and delayed funds availability are payment method behaviors. Instant and delayed disbursements help multiparty partners hold funds before disbursing to sellers, but aren't payment method behaviors.
Available payment methods
PayPal supports the following alternative payment methods:
| Payment method | Payment category | Payer flow | Payer location | Seller country | Currencies | Refunds |
|---|---|---|---|---|---|---|
| AliPay | wallet | redirect | CN | CN | AUD,CAD,EUR,GBP,HKD,NZD,SGD,USD | Within 360 days |
| Boleto Bancário | voucher | redirect | BR | BR | BRL | N/A |
| Grabpay | wallet | redirect | SG | SG | SGD | Within 365 days |
| OXXO | voucher | redirect | MX | MX | MXN | N/A |
| Satispay | wallet | redirect | AT,BE,CY,EE,FI,FR,DE,GR,IE,IT,LV,LT,LU,MT,SM,SK,SI,ES | AT,BE,CY,EE,FI,FR,DE,GR,IE,IT,LV,LT,LU,MT,SM,SK,SI,ES | EUR | Within 90 days |
| Trustly | bank redirect | redirect | AT,DE,DK,EE,ES,FI,GB,LT,LV,NL,NO,SE | AT,DE,DK,EE,ES,FI,GB,LT,LV,NL,NO,SE | EUR,DKK,SEK,GBP,NOK | Up to 365 days |
| WechatPay | wallet | redirect | AT,BE,DK,FI,FR,DE,GR,HU,IS,IE,IT,LI,LU,MT,NL,NO,PT,ES,SE | AT,BE,DK,FI,FR,DE,GR,HU,IS,IE,IT,LI,LU,MT,NL,NO,PT,ES,SE | EUR | Within 360 days |
Next steps
Choose a payment method from the table to integrate.
See the Payment methods page for a list of currently supported payment methods.