How People Pay P2B Payments
Conclusion
Card-like features and improvements in UX are the next steps for alternative payments
To drive the broader adoption of new alternative and mobile-first payments, it is crucial to focus on innovations that enhance the user experience while remaining cost-effective and accessible. These developments must also cater to individuals who may not have access to credit or be less familiar with financial transactions.
In that context, at least two key trends could significantly boost the adoption of APMs in emerging markets:
Incorporating features traditionally exclusive to cards, such as expanding credit options and enabling recurring payments;
Enhancing the user experience within these systems.
Both developments can transform how consumers—and especially merchants—perceive APMs, which were once viewed as slow, asynchronous, and reliant on outdated technologies.
Today, APMs are evolving to provide a user experience more akin to that of cards: instant, seamless, and fundamentally online.
"The primary goal for dominant payment methods is to continuously enhance their user experience (UX) to drive higher purchase conversions while fending off competition from new entrants," explains Eduardo de Abreu, Vice President of Product at EBANX.
"Key to this success will be improvements in the checkout process, such as eliminating redirects to banking apps and reducing mandatory fields. These enhancements are critical for ensuring the continued dominance of leading alternative payment methods in each country or region."
"Key to this success will be improvements in the checkout process, such as eliminating redirects to banking apps and reducing mandatory fields. These enhancements are critical for ensuring the continued dominance of leading alternative payment methods in each country or region."
Eduardo de Abreu
Vice President of Product at EBANX
Expanding offer of credit
In this context, India’s UPI is again emerging as a trailblazer in the instant payments ecosystem. After introducing the AutoPay feature, which enables recurring payments through the instant payment system, the National Payments Corporation of India (NPCI) recently added a functionality allowing consumers to link their credit cards to UPI.
In that method, instead of debiting transactions from the consumer's bank account, the amount is charged directly to their credit card limit. This integration bridges the gap between traditional credit services and modern digital payment methods, further expanding the versatility and appeal of the APM.
“We are currently seeing this feature being adopted more for domestic payments, but I believe that as people become increasingly comfortable using credit on UPI, its adoption will continue to grow,” explains Rashmi Satpute, Country Director for India at EBANX. “UPI will become an infrastructure.”
At the moment, only local credit card RuPay offers this feature.
“But I wouldn’t be surprised if other brands start adopting it as well,” says Satpute. “We see this as the next evolution for the usage of credit cards in India: making the experience of shopping on credit as seamless as on UPI.”
This is further reinforced by the fact that once customers register their card with UPI, they no longer need to enter their card details repeatedly. This seamless integration enhances convenience while leveraging UPI's secure and user-friendly ecosystem.
“It combines the ease of UPI’s infrastructure with the benefits of credit cards.”
Another innovative solution has been the expanding offer of credit, whether with BNPL (Buy Now Pay Later) payments or the possibility of purchasing in installments. Currently, several digital wallet players offer this feature, such as Mercado Pago in LatAm and Nequi in Colombia, which created a BNPL service within its app, or NuPay in Brazil and Yape in Peru, which offer installments in up to 24 monthly payments.
"Increasing purchasing power means distributing more credit in the market. Previously, this was done through credit cards. Now, APMs are stepping in, offering credit solutions with higher limits directly within the shopping experience", explains Abreu, from EBANX.
"This will translate to more money circulating in the market," he adds.
“Increasing purchasing power means distributing more credit in the market. Previously, this was done through credit cards. Now, alternative payments are stepping in.”
Eduardo de Abreu
Vice President of Product at EBANX
The next step of recurring payments
Brazil’s Pix is keeping pace with UPI and shows no signs of slowing down. As its adoption continues to grow among the population, its potential to expand into multiple sectors, including digital commerce, also rises. With its innovative, seamless, and efficient payment solutions, Pix is poised to become a driving force in the payment landscape.
In the last semester, Brazil's Central Bank announced new features: Pix Automático, Pix Garantido and Pix por Aproximação.
Scheduled to launch by June 2025, Pix Automático will allow consumers to use Pix for recurring payments, including online subscriptions to services like streaming (Spotify, Netflix) and SaaS (Canva, Adobe), further establishing Pix as a versatile and future-ready payment solution. Meanwhile, Pix Garantido will introduce the option for users to pay in installments, offering an alternative to traditional credit card payments.
The final upcoming feature, Pix por Aproximação, will enhance the user experience by introducing a contactless "tap-to-pay" payment method. While it is already available to some customers, it will be more widely adopted in the future. This feature allows consumers to make Pix payments without directly accessing their bank app, enabling seamless transactions through digital wallets. It opens a new growth avenue for both online and offline businesses, offering greater convenience and expanding Pix’s reach.
“Other potential advancements, such as future biometric payment options, could further enhance its versatility, enabling transactions without the need for mobile devices or digital wallets, relying solely on facial recognition,” says Leandro Carmo, Brazil Regional Director at EBANX.
“Potential advancements, such as future biometric payment options, could further enhance its versatility, enabling transactions without the need for mobile devices or digital wallets.”
Leandro Carmo
Brazil Regional Director at EBANX
