What the Future Holds for Retail Payment Solutions
There’s no escaping the need to buy. Here in the US, statistics have shown that brick and mortar stores generate revenues amounting to trillions of dollars annually, while eCommerce revenues reach hundreds of billions and the figures are expected to rise in the coming years.
People pay through various means when buying an item, the most common of which is in the form of traditional currency. But over the years, other methods of payment have increased in popularity due to their convenience in making transactions. This includes the use of credit cards and digital currency like Bitcoin.
As the retail industry is evolving, so are the processes on how consumers pay for goods.
Credit is still powerful and will become mightier
Swipe payments will still be common within the next five years. There are numerous types of credit card processing though, and the future hotspot will be the digital realm. As eCommerce and online shopping becomes the preferred choice of trading, the credit processing market within the online world is set for growth. By 2020, research estimates that an amount of more than $17 billion worth of goods will be bought online through credit processing.
Furthermore, the use of EMV and P2PE ensures security on top of reasonable processing rates. Solutions like CardPointe also allow merchants to manage multiple accounts even in a single computer or mobile device and monitor transactions in real-time. The combination of security, ease of access and balanced processing rates stabilizes the prices, at least within stores that implement such technologies, which is good news for customers.
But there’s a catch…
Mobile payments may spell doom for the credit card
As of today, mobile payment methods like Apple Pay, Samsung Pay and Android Pay are linked through credit cards, however, financial lending institutions are slowly integrating services directly with tech companies which will ultimately eliminate the need for an actual card. Mobile banks are also sprouting in European countries, which are launched through telecomm providers like O2. The US is investing in similar technologies as well, in addition to third-party mobile banking via apps of major banking institutions.
As more advanced mobile devices from leading manufacturers get increasingly accessible to users through free next day deliveries or pick up availability within minutes, more people are becoming accustomed to smartphones. In the future, transactions will take place mostly through mobile payments and even wearables connected to handsets may be used. Imagine paying in a store through your smartwatch.
Digital currency is silently amassing value
Behind the spotlight, digital currency is regaining its value, which is expected to rise in the coming years. According to John McAfee, “There will be a cryptocurrency standard for the world whether governments like it or not.” McAfee is the executive chairman of MGT Capital Investments, which has recently concluded the second phase of its Bitcoin mining that amounted to more than $1.2 million.
There are actually several big companies that allow digital currency like Bitcoin in trading, such as Ebay, Amazon, Home Depot, Target and Apple App Store. As the value of digital currency increases, society may very well be on its way to a full implementation of using Bitcoins and other similar types of purchasing agent.
The world has come to an age where technology runs almost all day to day processes and transactions. The payment solutions continuously being developed may dynamically affect the landscape of retail shopping, but one thing’s for sure: consumers will never stop using their purchasing power.
Exclusively written for True Merchant