The requirement to pay for stuff is just a part of life, but for those who run a business, the future brings developments that affect the “getting paid” side of the equation. The payment industry is constantly evolving, just like everything else we experience in life. We started with trading (I’ll give you one fresh-made raccoon hat for a bag of potatoes style) as payment and now have landed in a very real digital era that morphs constantly, and those who are responsible for processing those payments need to be at the top of their game.
The global payment ecosystem is surrounded by consistent-growing shifts due to the leaps and bounds that technology has made. Mobile wallets and fraud (sneaky buggers) are changing the way we move our sweet-sweet moolah around the world. Security is on high alert and new trends for payment processing are in full effect.
So, what are the new tends?
Let’s take a closer look… retailers are over-the-moon for this form of transaction, they offer valuable insights about customer purchases, which can lead to enhancing the shoppers’ experience (aka, more sales).
Also, people do not want to stand in line and often if they do, they will say “nerp, I don’t have the patience” and put their intended purchases down and leave without spending a single penny. Foot traffic is imperative, but one bad experience can keep a customer from ever waltzing themselves (more importantly, their wallets) back into a store. Speed generates sales, humans are impatient, and this forces businesses to find ways to help their customers get what they want as quickly as possible.
Mobile wallets allow people to spend as willy-nilly as they want, with their phone, and in any location of the store. No lines, no problem.
Credit card fraud has become a major issue in the United States. All too often does someone check their account and wonder when they decided to purchase that flat screen tv or those swanky alligator-skin boots. When it comes to credit card fraud, merchants do not go unscathed, they too take a hit when someone decides to “borrow” a stranger's card to go on a shopping spree. For those reasons, the growing world standard is EMV security. This is the microchip that is embedded in each card that provides extra security.
Many small businesses have been hesitant in this “new-fangled” way of processing card payments, but there was a third quarter shift in 2016, more than half of all small businesses had taken the plunge and upgraded, up from just 31% from the previous year.
What seemed disruptive for merchants at first has now become an easy and simple way for them to accept card payments. In our world today, plastic is king. Finding someone that has “change for a $20” has become quite the challenge. People just don’t carry (or want to deal with) cash these days.
A mPOS jump has been forecasted to go from 3.2 million in 2014 to 27.7 million devices by 2021, and this is simply in the U.S. alone. Retailers will be the biggest group that will be pushing this form of payment to new heights.
For years people have made the long trek overseas for the opportunity to send money to their family and friends in their home countries, today is no different. The United States is a place for migrants to come and find work that will support the ones they love. The digital shift is making this process easier than ever.
Growth at digital startups has been vast. In 2014, $583 billion were remitted across American borders. According to BI intelligence, digital accounted for 6% of that total number and expects it to continue to climb.
The more you know today, the better you and your business can prepare for what the future holds. Choosing the right payments processor is key for any company’s future for payment processing. Anticipating and being aware of change can be used to your advantage, free up time and resources, and allow you to focus on the future growth of your business end
Posted in Uncategorized on Nov 10, 2017