8 Ways to Think About the Future of Payments
It’s no secret that the payments ecosystem is in what appears to be a constant state of considerable change. What’s the challenge? Carefully balancing regulatory mandates with evolving consumer expectations. When thinking about the future of payments, here are some things to keep in mind.
Let’s face it. Consumers are connected. With nearly infinite access to information coupled with the increasing ability to do more with mobile devices, consumers are more connected than ever. And this connection doesn’t stop at the POS.
Alternative technologies are disrupting the payment behavior of consumers. Staying ahead in the future requires building commerce capabilities that deliver connected consumers a compelling reason to make purchases.
Fraud is big business and growing at an unprecedented double-digit pace. According to Identity Theft Resources and CyberScout, data breaches increased by 40 percent between 2016 from 2015. Add to that the liability shift from the card networks to the merchant for breaches that occur due to non-compliance with PCI mandates, and securing payment data quickly moves to the top of the list.
In the future, secure payment acceptance will not store, process, or transmit sensitive payment data. Where it be via traditional, mobile, call center, or eCommerce points of purchase, it won’t happen.
Nobody enjoys standing in a long checkout line waiting for other customers to figure out how they want to pay. Add in the friction at the POS caused by the introduction of EMV, and it’s no surprise consumers are establishing a preference for merchants that enable a more convenient payment experience.
Future payments will go beyond mobile payments. From Cloud-based apps that enable consumers to control their entire payment experience, in-store or before they even enter the business.
Create value for consumers and they’ll return again and again. One way payment acceptance can help create value is through rewards. This simple premise is proving mutually beneficial for consumers and merchants alike. For example, a National Restaurant Association study found that twenty-five percent of casual dining restaurateurs have realized increased loyalty from adding or expanding their loyalty initiatives. Twenty-six percent of fine dining establishments have seen these results.
Consumers love receiving valuable goods and services as part of a loyalty rewards program. As more businesses jump on the loyalty and rewards bandwagon, future success lies with programs that are simple, rewarding, and most importantly, make consumers feel valued.
Consumers continue to adopt innovative payment technologies that make purchasing goods and services safe, convenient, and rewarding. At the heart of future innovation and in the hand of nearly all consumers, mobile devices are the tool that is poised to forever change the check-out lane.
Consumers are embracing the ease and efficiency of using their mobile device to pay. From the simplicity and speed of mobile wallet tap-and-pay, to the end-to-end convenience and control of cloud-based mobile payment apps, innovative technology built for the consumer will continue to define the payments experience in and out of the store.
Extending beyond the point of purchase, the future of payments unites consumer payments seamlessly across all sales channels. By making the customer experience consistent whether in-store, online, or via a mail order catalog, payment acceptance evolves from being a simple exchange of funds to a sophisticated, seamless motion that spans customer experience, speed of checkout, and brand loyalty.
The future of payments is rooted in history. Historical data on transactions, trends and industry competition will give merchants the advantage they need to make more informed decisions, better serve consumers, and boost their bottom line.
Solutions that adapt to the rapidly changing payments landscape of the future will rise to the top. Navigating the complexities of compliance, consumer payment preferences, and technology innovations will require nimble solutions. Solutions that deliver smarter, faster and easier payments.