2016 Brings Payment Clarity and the Convergence of Online and In-Store Mobile Payments.
The last year has rightly been dubbed as the year of clarity for the payments sector. The vision for electronic payments became clearer with the emergence of data analytics, eCommerce, and 3-D Secure 2.0. Alternatively, it was also the year of online and in-store convergence via mobile.
While the goal of every business is to provide a better customer experience, too many payment options along with too much complexity only add to the frustration of consumers. Customers demand a seamless and secure payment process. The payments industry has long been waiting for a winning formula that could please both merchants and cardholders. New payment methods continue to emerge with a promise to dramatically change the way goods are bought and sold with the emergence of the aforementioned three core technologies.
eCommerce and mCommerce
The popularity of eCommerce has been rapidly growing, with over a billion customers using mobile phones to shop online. The $1.71 trillion eCommerce industry broke all previous transaction records last Black Friday. The inception of new merchant apps along with other features, such as pay-and-collect and virtual stores, has only bolstered the eCommerce industry.
The data deluge and technological advancements in data processing and analytics have opened up innumerable possibilities across different channels. Customers have always been looking to transact invisibly, without any friction. With the latest advancements in data analytics, such as invisible payment option, contextual payments, and tightened security, cardholders have been enjoying significant benefits.
3-D Secure 2.0
The advent of 3-D Secure 2.0 in 2016 has brought about a revolution in customer experience. Though it was previously known as the security rails for the payments industry, 3-D Secure challenges the transactions with the highest risk, utilizing risk-based authentication. As a result, the payments industry can expect to see a growth in the adoption of the new protocol that supports both mobile and in-app purchases.
Related: How to Reduce eCommerce Fraud Risk.
After the year of clarity for the payments industry, this year is expected to be the year of acceleration. Convenient, safe, and secure electronic payment options promise to provide improved customer experience. With the convergence of real and digital lives, the focus is increasingly on improving consumer convenience online, with better and more convenient payment solutions. Mobile phones are also becoming more accessible to a wider variety of people, for example, you could get an opel mobile if you’re elderly or visually impaired and partake in this new technology too.
Brands are fast evolving in terms of omni-channel offerings. Walmart offers m For example, Walmart encourages customers to shop for groceries with their mobile phones while allowing in-store comparisons for electronic deals.
Last year saw a significant adoption of digital payments, and in 2017, brands will continue to focus on delivering a great user experience to build trust and improve adoption rates. The introduction of payment processes that provide safe, secure, and seamless digital experiences via mobile is a step in that direction.
Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!