Due to the quickly shifting needs of businesses, consumers, and regulatory agencies alike, the payments industry is constantly evolving. Let’s discuss some of the incredible innovations you should be on the lookout for!
Changes to In-Store Purchases
Due in large part to the pandemic, 2020 saw in-store transactions drop 3 percent. While this doesn’t equate to the permanent decline or death of brick-and-mortar shopping, in-store payment methods have been forced to adapt to increased hygiene concerns associated with the virus. There’s been a sharp decline in cash and check usage and a significant increase in debit and credit card payments. It’s unlikely that consumers will phase out cash and check payments entirely, but it is clear that the preference toward digital payment methods is increasing. Because of this, it becomes increasingly important for businesses to employ safe, reliable, and easy-to-use credit card processing devices. More often than not, customers will want to pay with their card, so having the right payment hardware is imperative to the success of a business.
Up in the Clouds
Cloud technology isn’t a new concept throughout much of the world, but it’s certainly making waves in the payments industry. With the increasing popularity of online shopping, businesses need a convenient and safe way to accept payments from their customers. Cloud-based payments run on a network of remote servers, offering enhanced data security, lightning-fast payment processing, and superior reliability. Due to the pandemic, many consumers are opting to swap out in-person shopping for online shopping whenever possible. Cloud technology is playing a huge part in helping businesses keep their revenues flowing during this challenging time.
Growth of Mobile Wallets
In the past year, there’s been an explosion in the popularity of mobile wallet apps. In 2019, the mobile wallet market was valued at approximately $1,094.75 billion. By 2027, it’s estimated that this value will balloon to a staggering $7,784.90 billion! Many Asian and European countries have been embracing the cashless lifestyle for years, but adoption has been relatively slow in America. The COVID-19 pandemic has accelerated the widespread adoption of this useful technology among American consumers.
Increased Popularity of Super-App Operating Models
App developers are constantly working to create more convenience for their customers by integrating multiple functions into a single application. The “super-apps concept” was originally introduced in 2010 by Blackberry founder Mike Lazaridis to describe “a closed ecosystem of multiple apps that users turn to daily because of their convenience.” This concept has been adopted by many app developers within the payments industry, and it’s resulted in apps that seamlessly integrate payment processing capabilities with customer service, finance, and messaging functions. Now that mobile wallets are being adopted by Americans, many developers are searching for ways to incorporate other important features into these programs.
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The payments industry moves at the speed of light, but we’re here to help you stay up-to-date on the latest solutions. Contact us to learn more about how we can help!