SEVEN TRENDS OF

NEXT-GEN PAYMENTS

 

Mobile is the new standard for consumers to make purchases. Numerous threats that have affected traditional payment systems, coupled with new technology, have led to the development of different payment processing technologies that are more convenient and secure. It’s crucial your business is prepared to enter the next generation of payments as the strength of cash vanishes in this digital world.

 

WHAT YOU NEED TO KNOW:

 

Due to its ease of use, mobile payments are preferred by consumers. It’s predicted that within the next year, half of today’s smartphone users will use mobile payments as their preferred method for transactions.1

About 10% of Americans don’t carry any cash at all and of Americans that do carry cash, the average amount is less than $20.

It’s predicted that by 2017, fewer than 25% of all in-store purchases will be cash-based transactions.2

 

 

The market for mobile payments is growing quickly. By 2017, it is expected to be worth $720 billion in transactions compared to just $235 billion in 2014.3

 

The launch of new debit and credit cards that utilize cryptography, like EuroPay, MasterCard and Visa, has resulted in decreased fraudulent activity. These cards detect modified transactions and require a pin for added protection. For merchants that accept chip cards, counterfeit fraud fell 26% in January compared to last year.4

 

Mobile wallet brands such as PayPal, Google wallet, Amazon payment and Square cash, offer services including online payment, online ticket booking, online gifts, coupons and loyalty cards. The market is predicted to reach $142 billion by 2019.5

 

Evolved from radio frequency identification (RFID), near field communication (NFC) is a wireless data transfer method that identifies and enables technology within range. While mobile wallets require users to download an app to their smartphones, NFC users can simply hold their devices to a contactless payment terminal and instantly make a payment.6 In fact, Visa recently developed a payment ring for athletes to wear during the Olympic Games in Brazil.7

Bitcoin’s digital currency is growing at incredible rates, with more than $1.46 trillion in circulation as of June 1, 2016.8 Blockchain, a permissionless, distributed database technology for managing and recording transactions, could help banks reduce the confusion and cost of numerous complex processes.