Over the past number of years alternative payment methods have increased in significance. Right now the relevance of these to the online industry is beyond dispute. Many businesses are accepting PayPal, BillMeLater and others as core payment methods. However the applicability of each method to an individual business needs to be determined on an individual basis given each situation.

Like all payment methods, internet wallets come with their own considerations:

» What is the profile of the customer base to which you are selling – do the demographics of that base match those of the internet wallet customer base?

» How many extra potential customers will you gain by supporting this payment method?

» What are the costs involved and if there is any displacement of bookings from one payment method to another – will this cost you or will you gain from this?

» Who is liable for fraud and how is this managed?

» How and when will you be funded?

» What is the reconciliation process and is additional sale data included?

» If there is a mismatch between the transaction currency and the currency of the wallet, who controls the FX? Is there potential for you to earn revenue on the FX?