Every new year brings speculation about which payment trends will dominate and how they will impact the payment processing at your business. While it is impossible to predict with 100 percent accuracy every innovation that will impact merchants in the coming year, there are some areas that cannot be ignored due to their growth.
As of October 2015, all new credit cards are required to come equipped with Europay, MasterCard and Visa (EMV) technology. These new cards contain a small computer chip that is extremely difficult to counterfeit. The new requirement was made because almost half of the world’s credit card fraud happens because of magnetic-stripe cards.
Mobile payments are becoming the wave of the future. The world’s biggest tech companies such as Google and Apple are working hard to replace ATM cards and checkbooks with electronic wallets on mobile devices. In addition, retail stores like Target and Walmart are developing their own forms of mobile payments. So while these companies compete to release and/or update new payment systems, it is important for merchants to have a firm handle on all the new payment types that will be coming their way so as to stay competitive in the marketplace.
A recent study by Gartner showed that half of consumers in major markets across the world expect to be regularly completing transactions using some combination of mobile payments and wearable technology. At the moment, devices like the Apple Watch are the most well-known. However, there are several other devices such as wristbands that would be able to make the same transactions. As these devices become more mainstream, your payment processing methods must adapt.
In short, payment processing is an ever-changing field. Keeping on top of the trends in payment will keep your business ahead of the game and profitable.