In today’s rapidly evolving financial landscape, traditional banking services are becoming increasingly inaccessible to businesses operating in underserved industries such as iGaming and Virtual Asset Service Providers (VASPs). As a result, alternative payment methods (APMs) have emerged as a game-changing solution, providing businesses with new ways to help facilitate transactions and enhance security and compliance.

The limitations of traditional banking

Historically, Banks have been hesitant to work with businesses in sectors deemed “high-risk” due to concerns over regulatory compliance, chargebacks, fraud, and reputational risks. This reluctance has left many legitimate businesses struggling to secure banking services, resulting in operational inefficiencies and financial bottlenecks.

The common challenges faced include:

• Account rejections or closures
• Limited access to payment processing options
• High and slow transaction fees
• Lengthy onboarding journeys 
• Slow transaction speeds impacting business operations

What are Alternative Payment Methods?

Alternative Payment Methods (APMs) are financial infrastructures that operate outside of traditional banking systems, providing businesses with an alternative banking solution to process transactions efficiently. These networks leverage digital innovations such as blockchain, fintech APIs, and peer-to-peer (P2P) solutions to facilitate seamless payments.

Some key types of APMs include:

1. Crypto payment gateways – allow businesses to accept Bitcoin, Ethereum, and stablecoins as payment methods, with the option of fiat settlements.
2. Alternative banking solutions (EMIs, PIs, crypto-friendly banking services etc.) – enable users to store and transfer funds without relying on traditional banks.
3. Payment Processors and Aggregators – provide businesses with access to multiple payment methods, including card payments, ACH transfers, and digital wallets.
4. Decentralised Finance (DeFi) Platforms – Offer lending, borrowing, and payment solutions using blockchain technology.

The rise of crypto and stablecoins in APMs

One of the most significant trends in alternative payments is the adoption of cryptocurrencies and stablecoins. 

As of March 2025, the stablecoin market boasts a circulating supply exceeding $227 billion, with daily transaction volumes for leading stablecoins like USDT often surpassing $20 billion. This positions stablecoins as formidable alternatives to conventional payment methods.

These digital assets are increasingly used by corporations and financial institutions to streamline payments, reduce costs, and improve settlement efficiency and provide an efficient way to conduct transactions without the limitations imposed by traditional banking.

Benefits of crypto-based APMs:

• Global accessibility – Transactions can be conducted without geographic restrictions.
• Potential for lower transaction fees – Avoiding high processing fees associated with banks and card networks.
• Rapid settlements – Blockchain-based payments process in minutes rather than days.

Stablecoins, such as USDT and USDC, have gained popularity for their ability to provide the benefits of cryptocurrency but are pegged to USD, making them a preferred choice for businesses transacting across borders.

Alternative banking solutions bridge the gap

As traditional banks continue to restrict services to “high-risk” industries, alternative banking solutions have emerged to bridge the financial gap. These solutions provide businesses with secure, compliant, and efficient ways to manage funds and process transactions without relying on traditional banking institutions.

Key Alternative Banking Solutions:

1. EMIs (Electronic Money Institutions) – Provide IBAN accounts that allow businesses to send and receive without needing a traditional bank.
2. PIs (Payment Institutions) – provide payment services, such as money remittance, payment processing, and payment initiation, regulated under the Payment Services Directive (PSD2). 
3. Crypto-friendly banking services – Enable businesses to exchange, and transact in both fiat and cryptocurrencies, offering greater flexibility in financial operations.
4. Offshore banking solutions – Some businesses explore offshore banking options in jurisdictions with more favourable regulations for underserved industries.

Benefits of alternative banking solutions:

• Faster onboarding and approvals compared to traditional banks.
• Reduced risk of sudden account closures due to risk-tolerance.
• Global access to financial services vast geographic coverage.
• Integration with APMs to facilitate seamless transactions.

By leveraging alternative banking solutions, such as ONE.io, underserved businesses can gain access to reliable and suitable payment partner to support their financial activities.

Real-world applications of Alternative Payment Methods

Several industries are leveraging APMs to streamline financial operations:

1. iGaming operators and suppliers

The online gaming industry has historically faced challenges with payment processing due to regulatory scrutiny. APMs such as crypto gateways provide a means to accept crypto payments and convert to fiat. Alternative banking services reduce reliance on traditional banks for global transactions. 

2. Virtual Asset Service Providers (VASPs)

Cryptocurrency exchanges, NFT marketplaces, and DeFi platforms depend on APMs to facilitate fiat-to-crypto conversions, wallet transactions, and help improve overall liquidity management.

3. E-commerce & subscription-based businesses

Alternative payment solutions such as digital wallets, and crypto payments are reshaping online commerce, offering customers greater flexibility while helping to limit chargeback risks for merchants.

4. Luxury goods & high-end retailers

Luxury brands and high-end merchants are increasingly turning to crypto payment gateways to attract a global clientele and offer high-value, low-friction transactions. With blockchain-based payments, these merchants can attract crypto-savvy, high-net-worth individuals looking for seamless payment options.

Brands in the luxury fashion, jewellery, and automobile industries are already leveraging alternative payments to cater to a crypto-native audience.

The future of Alternative Payment Methods

As financial technology continues to advance, APMs will play an increasingly critical role in reshaping global transactions. Innovations such as central bank digital currencies (CBDCs) and AI-driven fraud detection will further enhance the efficiency and security of alternative payments.

Businesses operating in underserved industries must stay ahead of these trends to leverage APMs effectively. By adopting alternative payment solutions, companies can future-proof their operations, expand their market reach, and enhance financial resilience.

Final thoughts

Alternative Payment Methods are no longer just a workaround for underserved businesses, they are becoming the new standard in digital transactions. As traditional banks continue to tighten restrictions, the role of APMs in financial inclusion and innovation will only grow.

Is your business struggling to access reliable payment solutions? Explore how alternative payment methods can help you overcome banking barriers and scale your operations efficiently.