There was a time when a cash register was all you needed to open shop. If you also accepted checks, you could attract even more customers. And over time, credit cards became the preferred payment standard for many shoppers.
Cash, checks and plastic are all still very popular, but they’re also falling out of favor as consumers embrace more convenient payment methods. In order to benefit from these newer options — and avoid some of the challenges they present — it’s important that you understand what’s on the horizon.
Below are just some of the top payment processing trends you need to be aware of in 2017.
1. Widespread Adoption of the EMV Standard
Chip-enabled EMV credit cards are incredibly effective at reducing in-store retail fraud. In fact, they’re so effective that the Payment Card Industry has made switching all but mandatory for U.S. retailers. There was even a well-publicized EMV migration deadline in October 2015.
Even still, the rollout has been slow. This is especially true among smaller merchants who lack the resources to easily upgrade to the newer EMV standard.
But in 2017, chip adoption will likely approach 100%. If you haven’t already made the switch, you’re putting your business and your customers at risk.
2. The Rise of Online Payment Fraud
As EMV payment processing becomes more mainstream, thieves are increasingly turning to e-commerce, where chip-enabled cards offer little protection.
If you’re serious about safeguarding your online business, choosing a PCI-compliant payment processor is critical. In addition, you’ll want to look for providers that offer advanced security methods such as tokenization and point-to-point encryption (P2PE) Fraud management tools.
3. More Mobile Payment Processing
Apple’s success has sparked unprecedented interest in near field communication (NFC) — a contactless payment technology that allows buyers to initiate transactions via mobile devices and wearable technology.
Fortunately, you don’t have to radically overhaul your payment processing to take advantage of this trend. With the right EMV terminal, you can also begin accepting mobile payments as well.
4. The New Sharing Economy
A lot of businesses that began selling products are now switching to subscription-based models. That’s because customers increasingly value benefits over ownership. They don’t want a power drill — they only want the hole that the drill creates. And for them, it makes more sense to rent than to buy.
Preparing for this sharing economy may require replacing one-off invoicing with subscription-based pricing (i.e., recurring billing).
5. Better Rewards and Perks
Competition may be bad for your business, but it’s great for consumers. With so many options to choose from, they can be a lot more discerning in their shopping habits.
One way to distinguish yourself is to offer perks tailored to each customer’s needs. Managing all these preferences, however, is challenging — especially if you update your records manually.
With better payment integration, you can capture all transactions and user behaviors automatically. As new sales come in, this information is instantly reflected in the CRM and accounting tools you already use.
How BluePay Can Prepare You for These New Payment Trends
Preparing for the aforementioned changes may seem like a daunting task, but with our help, your business will be ideally positioned to take advantage of these emerging trends. BluePay’s PCI-compliant solutions can make your payment processing more secure, more flexible and more customer-friendly.
To learn how we can help you thrive in 2017 and beyond, contact our merchant services team today.