Lets discuss the technologies that will create the foundation for the future.
Author: Samuel Bailey, Lead Software Engineer
In the digital age where almost all payments are done electronically, Payment processing has never been more important. The landscape of payment processing also continues to evolve with the evolution of technology. The future of payment processing is being shaped by new, emerging technologies and trends that provide opportunities and challenges for businesses as well as consumers.
If you looked at the nature of payment processing 30 years ago or even just 10 years ago, you’d be amazed to find how stark the contrast is. From the 80s to the 90s, we went from copying credit cards to electronic terminals. From the 90s to the early 2000s, we went from variety of different systems to the standardized Visa and Mastercard System we know today. Since then, there has been a plethora of new technologies such as EMV, contactless, digital wallets, mobile, etc. The industry tends to have a massive shift every ten or so years. So the question is, what do the next 10 years have in store of the industry?
So let’s take a look at the 5 things we think will make a lasting impression. While none of these things are game changing, we believe they will lay a foundation for the game changing elements of the future.
Consumers can make payments by way of contactless means, such as Apple Pay and Android Pay, which do not require the user to physically touch a payment terminal. With everything that happened in the last 3 years, we think this technology is going to gain increasing popularity. In addition, a range of devices including smartphones, watches and smart cards can be used to make contactless payments. We believe contactless will be the forefront as it will lead into many different technologies in the future.
A great percentage of customer retention is the ultimate growth strategy
Something that is being looked at alongside contactless is biometrics. Biometric authentication is used for verifying the identity of a user, using defining physical characteristics such as fingerprints or facial recognition. While not yet an industry staple, we could definitely see this become mainstream in the years to come.
Most people still don’t technically understand the concept of blockchain. Blockchain is a distributed ledger technology. As for the payment world this will allow for secure, encrypted and open transactions. Also, the decrease in cost that this technology creates is the benefit merchants are most excited for.
Trends and specific market needs which offer new opportunities and challenges for both business and consumer alike will eventually dictate the future of payment processing.
Companies have to adapt and innovate in order to keep pace with the evolution of these technologies, while ensuring that their customers receive a high level of satisfaction. The fun thing about speculating is that the speculation is the very thing that can drive certain technologies to the forefront. The only thing left to do is to wait and see.
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