Overview

Overview
Understand APM categories, subtypes, payment flows, and billing logics before you compare methods in Choose APM
CategoryAccount-to-account (A2A)Digital walletsCash-basedBuy now, pay laterCrypto-basedCarrier billing
Payment flowDirectRedirect
Billing logicsOne-time1-clickRecurringUnscheduled

Alternative and Local Payment Methods extend checkout beyond cards. Method intros and choose APM use the same labels. Category and Subtype classify the method. Payment flow shows where checkout completes. Billing logics show who initiates later charges for recurring and automatic debit payments.

Cash-based and buy now, pay later methods have a category without a subtype. Methods that support both direct and redirect checkout are marked as Direct / Redirect in choose APM.

APM categories
Six categories of alternative and local payment methods

Alternative and local payment methods fall into six categories.

Account-to-account (A2A)

Payments made directly from one bank or payment account to another. Includes Real-time payments, Bank redirects, Open Banking, and Direct debits.

Digital wallets

Store money or payment credentials for faster payments on mobile. Includes stored value, staged, and pass through wallets.

Cash-based

Start online, complete with physical cash at a partner location or ATM. Includes vouchers paid in advance and methods paid after purchase.

Buy now, pay later

Short-term and mostly interest-free deferred payments that let shoppers pay over time. Pay in 4 is four installments. Pay in 30 is one payment due in 30 days.

Crypto-based

Pay using cryptocurrencies or stablecoins across borders with lower fees and more privacy.

Carrier billing

Charge purchases to a mobile phone bill or prepaid balance. Popular for digital goods in low-card or cash-first markets.

A2A subtypeKey differentiatorUXExamples
Real-time paymentsInstant, irrevocable, 24/7QR codes, OTPs, payment identifiersPix, BLIK, UPI Collect
Bank redirectsCustomer redirected to online banking to authorizeWeb or mobile redirect and bank list selectionPrzelewy24, UPI Intent, iDEAL
Open BankingUses APIs through PISP providers such as Tink, VOLT, Plaid, and TrueLayerRedirect or embedded. SCA required.Pay by Bank
Direct debitsMerchant pulls funds after mandateMandate authorization. Delayed confirmation.Blik Recurring
Digital wallets subtypeKey differentiatorUXExamples
Stored valueThe customer spends from a wallet balance funded in advanceThe customer confirms in a standalone wallet appGCash, Alipay, WeChat Pay
StagedWallet funds or linked credentials in two stagesLogin and approve in the wallet environmentPayPal, Mercado Pago, Klarna, Cash App Pay
Pass-throughTokenized credentials pass through without holding fundsConfirmation starts on mobile. No wallet balance is required.MB WAY, MobilePay
Payment flows
Checkout flow and billing logics

Payment flow describes where the customer completes checkout. Method pages and choose APM use Direct and Redirect.

Direct

The customer completes the payment without leaving the merchant website or app. Confirmation can still use QR codes, push notifications, or OTPs in place.

Redirect

The customer is redirected to a third party site or app to authenticate and pay, then returns to the merchant after completion.

These methods support different billing logics depending on who initiates the charge and whether the customer is present. Method intros list which logics Solidgate supports for each method. Billing logic labels can differ from future_usage.payment_type. Map the two in init APM.

Billing logic describes whether later charges are initiated by the customer or the merchant. A method can use a redirect checkout for the first payment and still support recurring or unscheduled charges initiated by the merchant after mandate setup. unscheduled is a superset of Unscheduled, Recurring, and 1-click when the provider does not restrict token use.

FlowInitiated byCustomer presentDescriptionExample
One-timeCustomerYesA single payment initiated by the customer. The customer confirms through redirect, QR code, push notification, or a similar step.One-off purchase at checkout
1-clickCustomerYesA payment initiated by the customer that reuses stored credentials. The customer does not reenter payment details or go through a redirect. The customer confirms with a single action based on a prior authorization.Saved wallet, no extra authentication
RecurringMerchantNoA merchant-initiated payment on a fixed schedule. Requires a prior mandate, consent or token setup by the customer.Subscription on a fixed schedule
UnscheduledMerchantNoA merchant-initiated payment with no fixed schedule or amount. Requires a prior mandate, consent or token setup. Common for event-triggered or usage-based charges.Post-ride or pay-as-you-go charge

Review track APM for lifecycle and error code guidance, then open choose APM to filter alternative and local payment methods by region, category, flow, billing logics, and capabilities.


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