4 Trends to Watch out for in the Payment Processing Industry
The payment processing industry is constantly evolving. In the 2000s, PayPal came out and shocked the credit industry, proving that digital payments could be made both safely and easily. The credit industry was forced to adapt and accept easy online payments, all of which have massively benefited consumers and led to the development of user-friendly payment processing systems that are designed with the consumer in mind. Here are four trends to watch out for in the payment processing industry.
NFC Tap Integration
Whether you buy into smart watch technology or mobile phone integration, modern merchant solutions will incorporate tap technology into their existing framework. Consumers want to be able to pay as quickly as possible with maximum safety in mind. A study by Accenture found that 41% of mobile users were aware of mobile payments and 16% of those users actively used the technology. However, 33% of those who do not use mobile payments suggested that they would adopt the technology if it incorporated better rewards. In addition, consumers were most interested in mobile payments at gas stations, person-to-person payments for Craigslist and other meetings, paying for public transit, and for paying their utilities. Businesses that want to stay ahead of the game will need to update their payment systems to newer devices that are capable of capitalizing with tap technology.
Credit card companies and businesses have caught on to consumers and their desire to be rewarded for spending their money. The current selection of popular credit cards offer everything from in-store rewards to cashback. Data collected by American Express suggested that 57% of Americans are members of a credit card reward’s program. However, a simple reward’s program isn’t enough anymore. Consumers are interested in unique rewards that are tailored to their needs. Cashback may be one of the most popular options, but personalization is quickly taking over and is something that all companies will need to consider if they want to emerge victorious in the competitive payment processing industry.
All-In-One Payment and Membership Cards
Building upon our previous point about the importance of personalized reward’s programs, businesses and payment systems that can incorporate a form of payment with a membership program will outrank businesses that require a consumer to juggle multiple cards when making purchases. As a consumer, tapping one card, earning points, and redeeming them all in one go is far more attractive than pulling out a reward’s card, tapping it, and then finalizing the transaction with your debit card. While the extra steps may seem minor, consumers value their time and it is important that a business learn how to complete a transaction and reward their consumers as quickly as possible.
Tokenization and The Future of Payment Processing
Payment processing systems are undergoing a fundamental change. As payments become easier to make, security will become the most important topic for the industry. The current tap integration and ease of access has led to the development of systems to combat payment fraud. Consumers are enjoying the benefits of this new technology without compromising their financial safety. Much of this is due to tokenization, a process which masks your financial data and completes transactions through an encrypted process.
If you’re interested in a Payment Processing provider that will work hard to meet your business goals, don’t hesitate to contact The Merchant Solutions today!
We are committed to serving you. Let us know how we can help you. Please enter your information and your question or comment below. A TMS representative will contact you within 1 business day.