5 Payment Trends Expected to Develop in 2017

5 Payment Trends Expected to Develop in 2017

• From year to year, new trends and advancements intechnology help expand the growth of payments.

• There has been a vast improvement of paymentsolutions, which are able to process payments faster andpossess heightened security features that help protectagainst breaches and instances of fraud.

5 Payment Trends Expected to Develop in 2017

•  Throughout 2017, there will be many new options consumers and merchants alike will be able to choose from.

•  As the New Year begins, let’s focus on the top 5 payment trends that are expected to develop in 2017 and lead the way.

5 Payment Trends Expected to Develop in 2017

• When it comes to payments, having heightened securityfeatures is essential to prevent potential threats andbreaches.

• Nowadays, credit card data can become compromised ina variety of different ways.

• Since instances of fraud and data breaches are acontinued problem, 2017 is expected to be a year wheresecurity solutions will continue to grow and additionalsecurity features will become available.

1. Growth of Security Solutions

• Now that EMV technology has been around in the U.S. fora little over a year, EMV adoption is expected to continueexpanding in usage, as more payment players andmerchants begin to integrate EMV-capable solutions.

• The longer merchants wait to integrate EMV solutions, themore likely they could open themselves up to fraudulentcards being used and experience an increase ofchargebacks.

1. Growth of Security Solutions

•  Other options for increased security protection include encryption and tokenization, which keep credit card information safe from potential hackers.

•  These two technologies transfigure credit card data into unreadable code upon being swiped.

•  Data is then tokenized, making the information only accessible via a secure token.

•  Together, they reduce the risk and liability associated with payment transactions.

1. Growth of Security Solutions

•  Mobile payments are expected to expand in acceptance throughout 2017.

•  During 2016, consumers expressed an interest in using mobile point-of-sale (mPOS) payment methods to purchase items.

•  With this trend expanding, more merchants, especially those not in brick-and-mortar locations, are integrating mPOS solutions in 2017.

2. Mobile Payment Acceptance Expands

•  mPOS solutions are a great option for merchants since they are able to accept payments outside of a traditional POS system, allowing them to be flexible and take payment acceptance on the go.

•  Consumers have also shown an interest in using mobile wallets and apps.

•  With Apple Pay®, Android Pay, and Samsung Pay leading the way for mobile wallets, many consumers have begun using their smartphone devices for payments and adapting alternative payment methods.

2. Mobile Payment Acceptance Expands

Mobile Payment Acceptance Expands

•  On a similar note, mobile applications are expected to continue rising in popularity.

•  Like mobile wallets, mobile apps store and process credit card information, making it quick and easy to process a payment via a smartphone device.

•  Many restaurants and retail stores are coming out with their own mobile app so that consumers can buy products on their own time in advance without having to wait in line.

•  For instance, Starbucks has introduced a feature in their popular mobile app that allows consumers to order items in advance on their smartphones, which are ready to pick up upon arrival without having to wait in line.

2. Mobile Payment Acceptance Expands

•  2017 will be an important year for cash and whether it will remain a predominant form of payment.

•  With more and more consumers using their smart devices to make purchases and websites becoming more mobile-friendly, consumers are shifting toward favoring digital payments over traditional cash.

•  Experts predict that around 75% of transactions will be cashless by 2025.

3. Shift Towards Cashless Payments

•  Global Mobile Money also reported that 66% of consumers have used their mobile device to process a payment transaction.

•  On top of that, consumers view mobile wallets and apps to be a faster and easier form of payment.

•  All that is needed to unlock a mobile wallet or app is a fingerprint scan or 4 digit code, which is a lot faster than having to dig through a wallet to get cash.

3. Shift Towards Cashless Payments

•  There are two forms of technology that have shown growth regarding payments – NFC and Bluetooth.

•  NFC (Near Field Communication) technology processes mobile wallet payments and is also used at ticketing booths, vending machines, and payment kiosks.

•  Payment experts expect the NFC market to grow to $47.43 billion by 2024.

4. Progression of Payment Technology

•  Since Apple removed the headphone jack from their latest iPhone 7 model, millions of consumers will now have to rely on Bluetooth technology for many features, including payments.

•  As more consumers adopt Bluetooth, there will be an advantage within the mobile spectrum to include more products and solutions that integrate with Bluetooth.

•  Google has already begun testing a new mobile payment app called “Hands Free”, which uses Bluetooth or Wi-Fi to connect to a users smartphone for payment, allowing the user to remain hands free during the purcahse.

4. Progression of Payment Technology

•  Integrated payments are a seamless and cost-effective way to combine a broad spectrum of business applications with payment processing.

•  Not only do integrated payments save money and improve cash flow, but provide a comprehensive suite of payment solutions that add value to a merchant’s business software.

5. Growth of Integrated Payments

•  With integrated payments, merchants can take advantage of products such as recurring payments, an account updater product that automatically updates credit card information, and a virtual terminal.

•  Likewise, integrated payments help make the payment process seamless.

•  With just a snippet of code, ISVs can easily integrate various payment functionalities into their software.

5. Growth of Integrated Payments

•  2017 will be a prime year for new payment technologies and trends to emerge that could make a difference.

•  The growth of security solutions will provide merchants added protection against threats while mobile payment acceptance is expected to continue expanding in usage.

•  The shift to a cashless society is possible as well, with digital payments becoming more prominent.

•  Progression of payment technology and integrated payments are also expected to make a different in 2017.

5. Growth of Integrated Payments

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