How does the future of virtual terminals and payment innovations look? Bright and full of promise for businesses and consumers.
There are emerging payment technologies that will save money for all parties involved in payment transactions. And the rollout of new, security-focused digital payment solutions will help slow the onslaught of fraud that is at an all-time high.
For business owners like you, it is crucial to stay informed about these payment processing trends. Why not start saving money and time as soon as a new tool or payment method becomes available?
National Processing loves saving business owners money. So, to help you stay ahead of this technology curve, we are shining a light on several innovations that will help you reduce costs, streamline business operations, and protect you from fraud.
We will begin with something simple but hazardous to all businesses.
The Future Of Virtual Terminal Security
One of the most common ways businesses become victims of fraud is by criminals gaining access to their virtual terminals. Hackers could get in and steal credit card numbers or bank account info on your customers. Also possible?
Theft by a dishonest employee using your virtual terminal or an honest employee not using secure log-in measures.
Thankfully, emerging payment technologies are available, and more are on the way to help prevent these financially damaging situations.
Passwords are outdated technology. Worse, people are prone to skip using best practices and often use weak passwords or leave passwords written down next to a computer! New tools avoid passwords altogether.
Examples
WebAuthn standard. Users log in by way of biometrics or security keys.
Magic links. A one-time email or text message gives a link that automatically logs a user in.
Speaking of biometrics, the future of virtual terminal log-ins may see simple thumbprint log-ins fade away. Innovations like behavioral, multimodal, and continuous biometric authentication offer higher levels of security for businesses.
Behavioral means analyzing typing patterns and mouse movements.
Multimodal combines multiple biometrics (e.g., face, voice, retina scans).
Continuous methods are seriously secure with ongoing verification throughout a session versus a single check at the initial log-in.
AI and machine learning offer new ways to shield your virtual terminal from fraud as algorithms advance to assess log-in context and adjust security on the fly! Machine learning to identify suspicious user patterns could soon become a standard feature on every payment platform.
The most exciting security tool of the future? It may well be advances in decentralized identity. This feature could involve block-chain authentication or zero-knowledge proofs—allowing authentication without the need to reveal sensitive information.
Another powerful tool that will impact the future of virtual terminals is quantum-resistant cryptography.
You might say, why worry about this possibility when quantum computing isn’t really available yet. Good question. But the thing is once quantum computing bursts onto the scene, businesses must be prepared to defend all their systems against potential quantum computer attacks.
At National Processing, we are big fans of 2FA or two-factor authentication. It is one of the easiest ways to protect your business from cybercrime and data breaches. We promote this security practice to all our customers and are thrilled that advancements are coming with MFA or multi-factor authentication.
Instead of having a code sent via SMS to a user’s smartphone, MFA could be based on user location, a specific device being used, and predetermined behaviors. This new security protocol could even adjust the steps needed to log in based on shifting risk assessments.
Three more examples of advancing technology likely to impact virtual terminal innovation are:
- Hardware-Based Security: Physical devices used for two-factor authentication
- Implicit Authentication: Uses unique device characteristics for authentication
- Brain-Computer Interfaces: Early-stage research into using brain signals for user verification
The third one sounds too incredible to be possible, right?
Not when you consider the early success of Neurolink.
Moving on, let’s focus on adding revenue to your business through payment and selling innovations (plus new marketing insights).
Future Of Virtual Terminals Using BNPL
BNPL (Buy Now, Pay Later) took off like a rocket when it was introduced a few years ago. While this digital payment solution has cooled somewhat, it still holds major promise for every business type.
BNPL is simply a way for customers to make a purchase and finance the payments over time without revolving credit accounts (aka credit cards). Many consumers like the flexibility of Buy Now, Pay Later (buyers can often choose how the number of installments).
Of course, shoppers should use this form of credit wisely and not get into debt that overwhelms them.
As for business owners using virtual terminals, BNPL provides limitless opportunities. They can expand their offers because this financing option gives their customers more spending power.
Three quick example opportunities:
- An auto repair business could begin selling tires, which, with today’s inflation, may be out of reach for many customers without financing options.
- A SaaS company could offer no-interest BNPL plans. Many users could then get the yearly discount price versus paying monthly.
- A wholesale business might begin offering package deals that their customers could only afford with a BNPL option.
You might be aware that Buy Now, Pay Later is not exactly new (similar finance options were used decades ago by Sears and Fingerhut). However, younger generations do see BNPL as a creative digital payment solution.
So let’s talk about more generational nuances that affect sales.
Generational Payment Technology Trends
You might be surprised to know 23- to 44-year-old shoppers care more about savings & are avid coupon users. Compare that to Boomers—they love convenience when shopping (source: Media Post).
Taking the statistics above, you could focus on sending digital coupons to your younger customers/clients. Perhaps discount codes on their birthday or job anniversary sent via SMS messages since younger folks are more likely to see that than emailed discounts.
Alternatively, for older customers you can lean into ways to make shopping more convenient. That might look like curbside service, tap-n-go credit card readers, faster shipping, or upselling bundles that save them an extra shopping trip.
Data even more helpful than the Media Post report is often hiding inside your virtual terminal!
Use that data wisely to present your customers with offers that resonate with them and their lifestyles. Make sure you offer numerous payment methods that fit different buyer segments and age groups too. Why?
It is more crucial than ever to keep customers delighted so they remain loyal to your business. The same report revealed a staggering fact.
In some retail segments, only 17% of shoppers buy from the same business twice in one year.
You can easily improve upon that number with a little personalization! Noticing generational shopping habits is one way to increase your repeat buyers.
Next, we look at one more gigantic payment trend.
Social Commerce Will Impact The Future Of Virtual Terminals
Is that a huge statement?
Yes. And well worth paying attention to so you don’t miss out — whether you use a POS or virtual terminal. Even if your business sells services instead of products or operates offline only.
Let’s start with what social commerce actually is.
“Social commerce involves buying and selling directly through social media platforms. It combines social networking and online shopping, allowing users to discover, share, and purchase products without leaving the social media environment.”
One of the key benefits of social commerce or social selling is the ease of buying. People don’t have to click off of Instagram or TikTok to go to a website… then put an item in a cart… then enter their credit card info… then finally finish the process.
Social commerce cuts down the steps needed to purchase. Two or three steps that take 60 seconds may not seem like a big deal, but consider this.
Amazon’s one-click buy button has been proven to produce more sales. It’s convenient and fast. Remember, Boomers like that! Also, Best Buy added hundreds of millions of dollars in sales by removing the need to sign up for an account at their checkout.
As for the social aspect of buying, this connects with younger generations. They like a deal. Just don’t forget their affinity for influencers who are affiliate marketers. Surveys show younger people value online influencers’ opinions way more than celebrity endorsements.
Conclusion
The future of virtual terminals is exciting to us at National Processing.
Every advancement gives us the chance to keep serving our customers at a world-class level.
As we have discussed, emerging payment technologies provide enhanced payment security that was not possible just a few years ago. Not only that, but new payment methods and selling platforms offer businesses the chance to ramp up revenue and strengthen their bottom line.
If you are ready to give your business an edge with the latest payment platforms while getting the lowest processing rates other businesses are enjoying, then…
Sign up with National Processing. You are Guaranteed the lowest fees and A+ customer service.
FAQ Virtual Terminal Innovations
Which virtual terminal innovations can increase sales?
While AI and machine learning are already enhancing fraud detection, most business owners fail to use AI to suggest relevant offers to upsell and cross-sell to buyers. Machine learning can increase profits by identifying the most cost-effective payment processing routes.
What is “omnichannel integration” in virtual terminals?
It’s the seamless connection of virtual terminals with other sales channels (e-commerce platforms, mobile apps, in-store POS systems, etc.) This ensures a consistent payment experience across channels and centralizes transaction data for precise insights and consistent customer service.
Does the future of virtual terminals involve “embedded finance”?
Yes. Virtual terminals are natural fits for embedded finance solutions—where non-financial companies integrate financial services into offerings. One example is a ride-share app that also offers peer-to-peer payments for friends to split meal costs. Another example is a home services business website giving customers a seamless way to use BNPL to buy a new HVAC unit.
