💳 APM Power Shift: 7 Local Payment Methods Taking Over 2025

The End of the Card Era
For decades, Visa and Mastercard were the symbols of global payments. Their logos adorned shop doors from New York to Nairobi, and card terminals accepted payments almost anywhere in the world.

But in 2025, the landscape has shifted. Alternative Payment Methods (APMs) — from local bank transfers to mobile wallets — are now displacing cards not only in niche segments but across mainstream e-commerce.

The reasons for this shift fall into three categories:

• Economics — high card fees are eating into merchants’ margins.
• Regulation — governments are launching their own national payment systems.
• Consumer habits — users prefer simple, fast, and locally familiar solutions.

The Top 7 APMs Dominating 2025

1. Pix (Brazil)

📍 Region: Latin America
🚀 Growth: +60% YoY in e-commerce transactions

Launched by the Central Bank of Brazil in 2020, Pix became the country’s dominant payment method in just five years.

Why it’s successful:

• Instant 24/7 transfers
• Zero fees for individuals
• Mass integration into banking apps

Pix is more than just a payment tool — it’s part of everyday life in Brazil. Today, you can use it to pay for groceries at the market, send money to a friend, or buy airline tickets.

2. UPI (India)

📍 Region: South Asia
🚀 Growth: +42% YoY

UPI (Unified Payments Interface) is an open instant payment system created by the National Payments Corporation of India.

Key benefits:

• Free P2P and B2C transactions
• Supported by all major banks and fintechs
• Integrated with global payment networks in 2025

Today, UPI processes over 10 billion transactions per month, and its expansion to other countries (Singapore, UAE) marks a new stage in its evolution.

3. iDEAL (Netherlands)

📍 Region: Europe
🚀 E-commerce share: >70%

iDEAL enables direct bank transfers, bypassing cards.

Why people love it:

• Low fees
• High trust levels
• Instant transfers

As of 2025, iDEAL has been integrated into the European Request-to-Pay system, expanding its reach beyond the Netherlands.

4. Swish (Sweden)

📍 Region: Scandinavia
🚀 Offline growth: +35%

Initially a P2P payment app, Swish is now widely used for in-store and online purchases.

Key feature: Integration with BankID, ensuring maximum payment security.

5. M-Pesa (Kenya)

📍 Region: Africa
🚀 Users: >55 million

M-Pesa transformed Africa by giving millions of unbanked people access to financial services.

Why it’s unique:

• Operates via mobile carriers
• Supports micro-payments
• Fully integrated with fintech and government services

6. Bancontact (Belgium)

📍 Region: Europe
🚀 Market share: >80% of local transactions

Bancontact is Belgium’s national payment method, which has overtaken cards in local e-commerce thanks to its low fees and convenience.

7. DuitNow (Malaysia)

📍 Region: Southeast Asia
🚀 Growth: +50% in 2024

Supports transfers via phone number, QR codes, and integration with e-wallets.

By 2025, DuitNow became the standard for B2B payments in Malaysia.

What This Means for the Market

• PSPs must be multi-APM by default — one API, many methods.
• Merchants need localization — without supporting popular APMs, up to 30% of conversions are lost.
• Cross-border adaptation — APMs are becoming part of international trade (example: UPI + Pix).

Forecast for 2025–2030

📈 APMs to capture up to 60% of global e-commerce
🌍 Growth of African and Asian methods through tech exports
🏦 Banks to create hybrid solutions between APMs and cards

APMs are no longer an alternative — they’re the new norm. Those who integrate today will set the rules tomorrow.

‍