By: Stephan Bochniarz
Today's ever-evolving payments landscape is undergoing a transformative shift.
With the increasing adoption of alternative payment methods, the continuous evolution of omnichannel solutions and the growing demand for flexibility in payment processing, the payment industry is headed for an exciting future.
Let’s dive into these changes and explore what lies ahead, all while keeping a keen eye on key industry trends and innovative technologies.
Alternative Payment Methods Take Center Stage
One of the most prominent trends in the payment industry is the rapid rise of alternative payment methods. Consumers and merchants alike are embracing these new avenues for transactions at an unprecedented rate.
Flexibility in payment solutions is a game-changer in today's dynamic market as businesses seek to develop a deeper customer experience. As these methods continue to evolve, businesses are able to provide greater options for customers without delays.
Whether it's mobile wallets, virtual cards or Buy Now Pay Later (BNPL) options, these alternatives are becoming integral to the payment ecosystem. In fact, over the last two years, contactless payment acceptance has surged by more than 70%, showcasing a growing willingness among consumers to adopt innovative payment technologies.
Three key innovations to watch in the payment landscape are:
- Biometric Payments: While adoption rates currently stand at about 35%, biometric payments are poised to follow in the footsteps of contactless payments' rapid acceptance. Biometric payments allow users to authorize payments with their physical characteristics. These payments offer a frictionless experience by eliminating the need for physical cards or mobile wallets. After the initial registration, biometric data is encrypted and tokenized for maximum safety and security.
- Mobile Wallets and Virtual Cards: Combining various funding sources into a single digital card, such as a QR code or digital card, is gaining traction. In-store adoption of virtual cards has seen a significant surge, offering a convenient and secure way to make payments.
- Buy Now Pay Later (BNPL): This payment method, which allows consumers to defer payment for purchases, is experiencing exponential growth. It offers customers greater financial flexibility and is a trend to watch closely.
The use of middleware/gateways will also benefit retailers and merchants as they continue to adapt to the ever-changing payments industry without having to worry about tedious integrations and certifications. Leveraging the gateway allows one support mechanism to support needs today but flexibility in the future when it comes to processing and hardware capabilities.
How Embracing the Future of Payments helps your omnichannel strategy
Omnichannel payment solutions are another defining aspect of the payment industry's future. Businesses are increasingly recognizing the need for holistic payment experiences that seamlessly integrate across various channels, including in-store, online and mobile.
This omnichannel approach not only enhances customer convenience but also streamlines processes like Buy Online, Pick Up In-Store (BOPIS) and on-site ecommerce returns. By consolidating reporting and management on a single platform, businesses can save time and resources while delivering a unified and cost-effective payment solution.
It’s Time to Start Innovating
At TRG, we have a rich background and extensive experience in the payment industry. Our resources and relationships enable us to help businesses navigate these changes and seize the opportunities presented by the evolving landscape. Whether it's omnichannel solutions, flexibility in payments or innovative technologies, we have the expertise to support your payment journey.
Ensuring the security and compliance of payment solutions is paramount. We can provide comprehensive details on policies, standards, PCI compliance, fraud defense and security measures as required. We stay on top of key PCI compliance dates, such as the upcoming certification expiration for PCI 4.x certified payment terminals in April 2024. Leveraging a gateway platform can simplify payment management, expanding your PCI scope and enhancing security and fraud defense.
The future of payments is filled with innovation, flexibility and omnichannel solutions. Businesses that adapt to these trends and embrace new payment technologies will be well-positioned to thrive in this rapidly evolving landscape. If you're ready to explore the possibilities of the payment industry's future, we’re here to guide you every step of the way.