These Mega Trends will Shape Payment Processing in 2019. Are you prepared?

mobilewallet1

According to a report by Accenture, Gen Z will make up to 40 percent of all US consumers by 2020. These teens and young adults are a tech-savvy emerging demographic that doesn’t remember a time before Google, Apple, Facebook and Amazon ruled supreme. Experts suggest that their purchasing and payment habits will surely influence other consumers. Over the next year, merchants should expect to see a surge in services that are catered towards all things mobile.

Here are a few of the Mega Trends that are expected to shape payment processing in the next year. Which ones will you choose to embrace?

  1. Skyrocketing popularity of in-store mobile payments.

In the upcoming year, in-store mobile payments are expected to overtake credit cards and grow from a $75 billion industry to $503 billion by 2020. It makes sense that people are moving towards digital wallets. We do everything else with our smartphones, why not make payments as well? It’s easy and streamlined. By providing your customers with the option of in-store mobile payments, you’re giving them a quicker, more forward-thinking way to pay for goods and services.

  1. Increase in mPos devices.

As of 2021, experts predict that there will be over $27.7 million mPos (mobile Pos) devices in circulation in the United States. This is a huge jump from 3.2 million in 2014. In other words, the long-held tradition of lining up to pay for your purchase at the till may be on the way out. Not only is this more convenient for the customer, but the increasing popularity of mPos devices gives merchants more options to provide an amazing customer experience by meeting customers where they are (on the shop floor, in the checkout line). Plus mPos has the ability to create an easier, quicker checkout process, which is never a bad thing.

  1. Biometric authentication.

Biometric authentication – I.e. using a fingerprint to verify and access a mobile wallet – is slated to be another big trend going forward in 2019. Apple Pay and Samsung Pay currently both use fingerprint identification, but not all platforms offer the same level of security. But soon this will change. Biometric authentication is a good development for merchants because it is likely to lead to a reduction of fraud –after all, while it’s still possible to steal a credit card number, it’s nearly impossible to fake a fingerprint.

  1. Rewards-driven purchasing.

As we mentioned above, millennials and Gen Z are leading the way with their buying power. Along with their older counterparts, they’re looking for customer experiences that make them feel valued. This means an increase in demand for customer rewards — either through points or a loyalty program of some sort. According to a survey, half of the consumers have said they would switch primary cards for a higher rewards value, and more than 40% of consumers would make the switch for a major upfront bonus.

Here’s how to prepare as a merchant:

As more and more customers choose to put their trust in mobile wallets, merchants will need to keep up with this shift in the payment industry. If you want to stay ahead of the curb, now is the perfect time to invest in new technologies that can handle multiple payment types. If you feel like your business might benefit from an mPos, this is another option to consider.

Amazing customer service provides great long-term benefits for both customers and merchants. Savvy merchants are creating these kinds of experiences for their customers by giving them what they want: rewards. One of the easiest ways to win over and keep your customers is by implementing a loyalty program.

On the surface, most of these trends primarily benefit the customer. However, by adapting to meet the changing payment needs of the customer, businesses have the opportunity to create a memorable experience for their clientele. After all, you can’t have a business without customers.

Posted on Saturday, June 15th, 2019