Payment processing trends that dominated in 2017
Published: Oct 19th, 2017
We are past the time, when all you required was just a cash register to set up shop and were ready to accept checks, so as to woo added customers. In the current scenario, to stay ahead of the competitors, most businesses had to adopt credit cards payment as the most accepted mode of payment.
Even if cash, checks or plastic are still popular, customers have also started to adapt to an easier mode of payment. Hence, most companies have now realized the need for payment processing services. Here, we will take a look at some of the trends that dominated the payment processing services, this year.
More businesses look to widely employ EMV standards:- These are chip-enabled and help to decrease in-store retail fraud to a large extent, so much so that most of the US retailers have started adapting to it. Meanwhile, notwithstanding the lack of resources by some of the smaller retailers to opt for these, there is still expected to be a major rise in the number of retailers going with EMV standards in 2017.
More people opting for mobile payment processing services:- Over the time, you see more and more customers and retailers turning to mobile payment, as it is more convenient. In India, this year demonetization is a very major reason for many to have opted mobile payment mode. Meanwhile, in US the great success of Apple Pay have also sparked interest in people for NFC (near field communication), which is contactless payment technology, via which most of the customers enable transactions, using their mobile devices or wearable technology.
Rise in online payment fraud:- Even as there is boom in the use of EMV payment modes, you will also see a rise in ecommerce fraud, especially where chip enabled cards are used, which is said to offer very little protection. Hence, many businesses have opted for PCI-complaint payment processing method, which is expected to be more secured mode of transaction. You can also look at P2PE (point to point encryption) as a payment tool to better manage fraud.
Bitcoin sees boom:- Last year was excellent for Bitcoin, as is this year with more and more traditional banks and financial institutions in US turning to this technology and investing in it, realizing the value that blockchain could bring for smart contracts, cloud storage as well as security. At the same time, across the globe people are losing the faith in the mainstream financial mode of payment. Hence, there is rise in use of crypto currencies.
Using machine learning method to fight fraud:- In simple context, "machine learning" is instructing a computer about an issue and solutions to it, if in a particular situation. Most regular use for it is found in examples of artificial chatbots managing customer service enquiries or those giving out Netflix recommendations etc. Meanwhile, they are also widely used the perfect solution to fight fraud. Machine learning, it is expected to identify any suspicious activity making use of historical and live data that helps to develop the behavior of the customer, thus helping them to predict prospective fraud. They have the latest algorithms in place, which can assess all the transactions for fraud, thus allowing for the most suitable response to counter it.
Going beyond use of finger print scanner or biometrics as a protection against fraud:- One of the best ways to verify, process or approve of a transaction, without the need for any wearable technology, could be to use biometrics or to employ a finger print scanner at the cash register. Some may also use iris scans, voice recognition or DNA verification.
Key Takeaway: From here, you can have a look at the various trends on payment processing that dominated the market in the year 2017, and you will also see how preparing to meet these modification could be a time consuming and tiring task. However, outsourcing the payment processing services to a trusted and efficient payment processing services, could help your businesses to better leverage on these emerging trends, even while focusing making the payment processing more flexible, customer friendly and protected.