Credit Cards on Their Way Out? How APMs and Local Schemes Are Squeezing Cards in 2025
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For years, credit and debit cards dominated the world of online payments. But 2025 is showing a clear trend: Alternative Payment Methods (APMs) and local payment schemes are rapidly gaining ground and pushing traditional cards to the sidelines.

Why are consumers and merchants shifting to APMs? What local methods are taking over in key markets? And what does this mean for your business? Let’s break it down.

What Are APMs and Why Do They Matter?

APMs (Alternative Payment Methods) include all payment methods other than traditional cards like Visa, Mastercard, or Amex. In 2025, top APMs include:

Digital wallets (Apple Pay, Google Pay, PayPal),

Instant bank transfers and Open Banking,

Cryptocurrency,

Buy Now, Pay Later (BNPL),

Mobile payment apps.
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Integrating APMs helps merchants:

Expand customer reach,

Increase checkout conversion rates,

Reduce payment declines.

Local Payment Schemes: The New Normal

In many countries, cards were never the preferred option. Instead, local payment methods emerged — and by 2025, they’ve become dominant:

Pix (Brazil) — instant QR-based bank transfers,

UPI (India) — massively adopted for e-commerce and peer-to-peer payments,

Swish (Sweden) — real-time bank transfers with a tap,

Bancontact (Belgium) — must-have for local online stores,

iDEAL (Netherlands) — preferred online payment method.

Integrating local payment solutions is key to successful market entry and growth.

Why Merchants Are Moving Away from Cards

1. High Transaction Fees

Card processing fees can go up to 5%, especially in certain verticals. APMs are often more cost-effective.

2. Decline Rates and Blockages

Card payments frequently get declined — due to issuer rules, 3DS checks, or fraud prevention systems. APMs offer higher approval rates.

3. User Preferences

Consumers want fast, seamless payments — ideally in one click, especially on mobile. APMs are optimized for convenience.

4. Local Habits

In regions like Asia and Latin America, cards were never dominant. Local solutions have taken over.

What’s Happening in 2025?

Europe: Rise of SEPA Instant, Open Banking, and digital wallets. Merchants seek providers with multi-method integration.

Latin America: Pix in Brazil and CoDi in Mexico are replacing cards at scale.

Asia: Alipay, GCash, Paytm and other wallets dominate. Card payments are secondary.

Africa: Mobile money like M-Pesa has leapfrogged cards entirely.

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What This Means for Merchants

✅ Bigger Reach

Supporting APMs and local payment methods means more customers and higher success rates.

✅ Better Conversion

Customers are more likely to complete the payment if they see familiar, easy-to-use options.

✅ Scalable Growth

Modern PSPs offer one API for dozens of APMs and local payment methods, simplifying integration.

Is Your Business Ready for a Cardless Future?

Cards won’t disappear entirely — they’re still useful in some contexts. But in online commerce, their share is steadily shrinking.

If you operate internationally, supporting alternative payment methods and local schemes is no longer optional — it’s essential for competitiveness and growth.

Card payments are losing market share in 2025.

APMs and local methods deliver higher approval rates and customer satisfaction.

Merchants are seeking PSPs with fast, flexible integration.

Supporting APMs is critical for cross-border sales and optimized checkout conversion.

Looking for a flexible payment provider with APMs and local solutions?

TODAPAY offers multi-currency processing, access to popular APMs, local payment methods across Europe, LATAM, Africa, and Asia, and a fast, developer-friendly API.

📩 Contact us — we’ll build a custom solution that fits your business.

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