Cash alternative payment services cover escrow, paper checks, stored value accounts, and money orders. These have existed for years and see limited adoption in U.S. eCommerce specifically, even though they remain dominant in markets like China.
Why they still matter
These methods are trusted as an online payment option specifically because they reach underbanked consumers, and anyone uncomfortable sharing banking details digitally at all.
The tradeoffs
Upside: lower fraud risk, access to a customer segment cards can't reach, and reduced transaction costs. Downside: real delays collecting payment, bad-check risk, a real chance of customer abandonment mid-process, and a limited vendor network for stored value options specifically.
The methods themselves
- Checks: consumers mail a personal or business check directly to the merchant
- Escrow: a neutral third party holds funds, protecting both buyer and seller until terms are met
- Money orders: a cash-based, pre-secured payment bought at a physical location
- Stored value / eWallets: digital currency systems like PayPal, or gift cards
Worth evaluating: how you'll manage payment delays, money order fraud specifically, how escrow disputes actually resolve, vertical-specific adoption trends, handling failed payments, and matching the option to your customers' actual regional and demographic preferences.