Credit Card Processing Blog

The Future of Payment Processing & The Mobile Revolution

Oct 04, 2016 08:00 AM / by Reliance Star

In today’s digital age, mobile payments are becoming more and more common. Customers are carrying less cash and are resorting to using their smartphones and digital wallets to make payments. Businesses need to be aware of this growing shift and the possible changes coming in the future. Those that don’t embrace these changes may be at risk of losing customers to their more forward-thinking competitors. Here’s what you need to know to welcome the future of payment processing.

Current Trends

Digital wallets enable users to connect their credit and debit card accounts to their mobile phones so that they no longer need to carry the physical cards with them. Retailers who have near-field communication (NFC) readers can pick up the signal from the user’s phone, allowing them to accept payment from digital wallets. 

In addition to using smartphones for payment processing, customers can also use wearables, like the Apple Watch. The same principle of NFC applies to wearables as to mobile phones. Wearables enable users to make payments with a simple flick of the wrist.

Similarly, businesses can process payments through PayPal, an online bank account that lets users deposit money directly or link to their other bank accounts. By accepting this type of payment, businesses give their customers greater flexibility in choosing how they wish to pay. This can contribute to greater customer loyalty. PayPal is currently one of the most important trends in digital processing, both for its convenience and because the payment processing company has established itself as a reliable, secure platform.

Future Possibilities

PayPal and digital wallets are just the beginning for this emerging technology, and more is coming in the near future. More wearable options are being developed, incorporating both style and technology. Bracelets, earrings and other jewelry can be equipped with NFC chips to enable payment processing. 

Another exciting development in this area is temporary tattoos that can be used to activate mobile phones to make payments directly from users’ skin. Although they only last for a few days, it opens up a lot of options for continuing development in the future.

Not only that, but there are even microchips that can be implanted under the skin, currently in the development phase. These chips are inserted under the skin using a specially designed syringe. This area of innovation, while somewhat scary at first thought, is actually very exciting because it can provide a more permanent solution to simplified payment processing.

The World of Biometrics

Many cell phones are already equipped with biometric scanners, enabling users to unlock their phones using their fingerprints or their eyes. In the future, it is likely that this technology can be expanded to be used for making payments as well. This way, customers would no longer need to carry their mobile phones or physical wallets. Their bank accounts could be linked directly to their persons, making payments on the go easier than ever before.

Why This Matters to Businesses

At first, many businesses may be reluctant to take on the additional expenses required to get set up to accept payments using new technologies, but this line of thinking is a mistake. While it does require an initial outlay to equip a business, it is well worth it in the long run. Also, some payment trends, such as Paypal, can be easily integrated into existing systems. Your customers will appreciate your efforts to embrace their preferences when it comes to payment methods. 

While it is not necessarily a good idea to be the first adopter of every new technological advancement, it is important for businesses to keep a close eye on emerging trends in the payment processing industry. This way, they can be prepared to adopt trends when they begin to become popular with consumers. By following along with the trends, your business will have the tools and information needed to stay ahead of competitors.

Topics: PCI, NFC, Mobile Wallets