Use of APMs to increase sales, improve payment security

Stakeholders in the nation’s financial industry have said that the use of Alternative Payment Methods (APMs) for business transactions will help to increase Small and Medium scale Enterprises (SMEs) sales as well as improved payment security.

They also admitted that using APMs for payment of goods and services would not only increase trust but it would enable Nigeria businesses expand their reach, have better customer experience and faster check out.

Speaking at the FirstBank’s SMEConnect Webinar Thursday, Head, Digital Innovation Lab, FirstBank, Mr Kolawole Ogunmekan said customers need a frictionless payment experience, especially for e-commerce transaction to aid seem less checkout, adding that APMs solves this problem by providing an array of options.

Ogunmekan who spoke on “Alternative Payment Methods: Key to Driving Increased Revenue” described APMs as any form of payment that is not carried out using cash or any major international debit or credit card brand like Visa

Mastercard, Discover, Amex. He said the major APMs include digital wallets, mobile payments, bank transfer, Buy now pay latter, QR payment.

Ogunmekan said before SMEs could choose alternative payment channel for any business, the customer needs to invest in a solution that aligns with his/ her lifestyle, focus on convenient and frictionless payment methods.

He said customers expected to select APMs that offers security features such as frauds protection and encryption features such as frauds protection and encryption to keep both your business and your customers’ data safe.

To have transparent pricing, he said SMEs should ensure that that they understand the associated fees before choosing payment methods.

Also speaking, Group Business Head, Merchant Acquiring, Interswitch, Mr Jeffery Williams-Edem while speaking on Leveraging Alternative Payment Methods, said APMs has two principles-upselling and cross selling, noting that while using these techniques, the customer must have the aim to improve the shopping experience for existing customers, rather than trying to pull in new ones.