The variety of convenient and quick payment options available, from electronic checks and cash to mobile wallets, going cashless is becoming more prevalent. As trends in the payment processing world evolve and are constantly changing, companies need to be aware of what is to come in 2017 and in the years to follow.
Despite Apple Pay debuting in 2015, mobile wallets had yet to become the predominant processing trend and to alter the payment industry as initially predicted. According to Business Insider, mobile payment volume is expected to rise between 2015 and 2020 by a compound annual growth rate of 80 percent. This would bring mobile payments volume to around $503 billion by 2020.
Mobile Point-of-Sale Devices
When mobile point-of-sale (mPOS) devices, like Square, entered the market, they were disruptive to the payment processing industry. Mobile POS systems allowed merchants the ability to accept payment by card, regardless of their location. As consumers now expect merchants to be able to accept both credit and debit cards, having mPOS terminals is an absolute necessity. ABI Research predicts that there will be over 51 million mPOS devices by 2019, making up for 46 percent of all point-of-sale systems.
With the availability of same-day shipping from companies like Amazon Prime, consumers now want their purchases within a few hours, rather than in a few days. Luckily, as this structure of “on-demand” economy will continue to grow, mobile wallets and similar technology will aid in its growth throughout 2017.
Fingerprint Scanning Biometrics
Apple Pay already uses biometric scanning for consumers to use their fingerprint to unlock their phones and verify purchases. The potential for avoiding the mobile device altogether when making a payment presents itself, thus challenging the industry to evolve with the technology. Fingerprint scanners at cash registers could verify, process and approve transactions without having to use any form of wearable technology. Following the fingerprint, iris scans and voice-recognition will also become possible.
These are only a few of the numerous trends rising to the forefront in the payment processing industry. To stay current with trends and ensure your business is capitalizing on all of its profit and potential, follow Total Apps weekly articles.