Industry Trends in Merchant Payment Processing
What you need to know about industry trends affecting your business
The payment processing landscape is rapidly evolving, influenced by everything from technological advances in fraud detection and mitigation, to the rise in mobile payments, to merchants’ demands for integrated payment solutions. Here are some of the top trends in the merchant payment processing industry right now.
Balancing Security and Convenience
It used to be said that “cash is king,” but using cash to make routine purchases has dropped significantly over the years as customers favor the convenience of using credit and debit cards as their preferred payment methods for mobile, online, and in-store purchases. According to the Nilson Report, payment card volume worldwide is expected to reach $9.313 trillion by 2022, with credit cards making up approximately 54.96% of the total volume!
While customers expect their payment card purchases to be fast and frictionless, merchants need to ensure these transactions are protected from fraud. Both customers and merchants are looking for convenient, easy-to-use payment methods that are both fast and secure. But sometimes, providing convenience and security at the same time can be hard to do.
Merchants need solutions that help them increase transaction volume and reduce fraud without complicating their customers’ checkout experience. There are a number of payment technology solutions available that use advanced algorithms and machine learning to help protect customer data and also guard against fraud. For merchants who use 3D Secure 2.0 technology, providing a hassle-free customer experience while reducing the chance of fraud is the perfect solution.
3D Secure 2.0 technology is a security protocol that adds a layer of protection to card-not-present transactions by verifying the customer’s identity. It supports a wide range of payment types, and uses over 150 customer- and transaction-specific data points to authenticate transactions.
Going Mobile
As the adoption of mobile devices has grown over the past few years, so has the number of consumers using “mobile wallet” apps on their smartphones to make purchases. A May 2018 article in U.S. News & World Report noted that by 2017, 39% of U.S. consumers were using mobile wallets, and that number is expected to grow. And according to Business Insider magazine, payment volume for in-store payments alone are projected to reach $503 billion by the year 2020.
In addition to in-store mobile payment technology, the use of handheld mobile point-of-sale (mPOS) devices is also on the rise. These devices are cost effective, come with high encryption levels, and provide merchants with the ability to go where their customers are, freeing them from the limitations of physical brick-and-mortar storefronts. The mPOS payment technology makes it easy for merchants to accept both mobile and card-present transactions, and speeds up the checkout process as well.
Customer expectations for fast, secure, and simple-to-use payment methods are bound to drive an increased demand for mobile payment options. This means that merchants who do not yet accept mobile payments could be missing out on a significant source of revenue.
But Cardknox has a solution! Cardknox makes it simple for you to accept mobile payments by using our Mobile SDK. With just a few lines of code, our Mobile SDK easily integrates with your mobile payment software so you can securely process mobile payments and EMV chip cards.
As more and more consumers discover the convenience of using mobile wallets, the demand for mobile payment options is sure to grow. Learn more about how our Cardknox Mobile SDK can help your business be ready for the future.
What Merchants Want: A One-Stop Payment Solution
Most businesses start out with one payment gateway to handle their processing needs. But as their business grows and their needs change, many businesses owners find that the payment provider they started with is insufficient, so they add another payment provider– and then another, and then another! Although it’s not uncommon for merchants to have multiple payment gateways, coordinating payment activity between multiple gateways is time consuming and expensive.
A move toward simplifying the process by providing merchants with seamless, integrated payment solutions is changing how merchants choose a payment gateway. Merchants want to partner with an all-in-one provider who can help them manage all their payment processing needs.
With robust, flexible processing solutions and industry-leading features, Cardknox is well positioned to take advantage of this trend.
- Multiple Integration Options
- Enterprise Resource Planning (ERP) Solutions
- Popular Shopping Cart Plugins
- In-store, eCommerce, and Mobile Payment Processing Options
- Developer-friendly APIs and SDKs
- And More!
