The end of the year is a busy season for many merchants, but it’s also an important time to prepare for what’s ahead. As always, one of the most important aspects that will affect sales and revenue at your business will be your payment processing. Let’s look at the changes that are on the horizon in 2019.
Mobile wallets have lacked behind more established forms of payments, but this is changing as mobile technology improves to provide faster and more convenient transaction experience. A survey by Accenture found that 64 percent of consumers plan to use a mobile wallet in 2020, while nearly a quarter are willing to give up their mobile banking app for a mobile wallet that stores all their payment information in one place.
mPOS Continues to Spread
Traditional in-store payment solutions are riding the mobile wave as well. Mobile point-of-sale (mPOS) systems are becoming omnipresent, with the number of these devices set to increase to almost 28 million by 2020, up from just over 3 million in 2014. An increasing number of businesses recognize the speed, convenience and, above all, simplicity of these mobile payment solutions — all you need is a smartphone or a tablet to get started.
Payment Security Improves
Each year, the holiday season serves as a reminder that fraudsters don’t sleep. Although the EMV shift back in 2015 helped curb some of the credit card fraud, criminals continue to adjust their tactics, especially in the card-not-present space.
Adhering to PCI compliance and fraud prevention strategies certainly helps but it’s no longer enough. In 2019, we’re going to see innovation in payment security methods like biometric authentication, which is already used by mobile wallets, blockchain and APIs that offer fraud monitoring capabilities.
Customer Experience Takes Center Stage
Customer experience has always been important, but millennial and Gen Z consumers are placing an even bigger emphasis on it. They love omnichannel payments and expect businesses to offer them, be it in-store, online or on mobile platforms. In return, more than 60 percent of them are willing to share their banking credentials with third-party vendors, giving merchants a lucrative opportunity to establish a business relationship that encourages future purchases.
Rewards and Loyalty Become Essential
Speaking of future purchases, loyalty and rewards programs have consistently played a major role in the buyer decision process. Consumer spending on rewards cards is on the rise, while two-thirds of millennials state that they won’t even be loyal to a company without a good loyalty program.
As consumers see more options and the competition for retaining them intensifies, adding rewards and loyalty programs to your business becomes essential. This goes hand in hand with upgrading your payment solutions, since outdated equipment is often ineffective in helping you create multiple touchpoints with your clients.
Innovative technology and changing customer preferences will continue to affect payment processing across industries in 2019 and beyond, and the best way keep up with these changes is to work with a reputable payment processor. At TransNational Payments we help merchants find affordable credit card processing solutions that work best for their business. Avoid 20/20 hindsight and make a move to upgrade your payment processing in 2019.