Retail Payment Trends in 2016
The payments landscape saw many changes in 2015 with the arrival of EMV chip cards and various Mobile Wallet and Payment Systems like Android Pay and Apple Pay. 2015 was a good year for electronic payments. 2016 will be just as eventful with regards to retail payment trends. Payment technologies that were proposed and introduced in 2015 will definitely get more exposure in 2016 and hopefully make electronic payments easier, faster and more secure.
Global retail payments are expected to grow to $13 trillion in 2016. They might just get there as global retail payments hit a record high in 2016. Getting new payment technology into the mainstream will directly affect how shoppers pay for goods whether in brick and mortar stores or online retail. POS transactions increased 10% in 2015 and making it easier (and faster) at the counters will also increase consumer spending.
Here are 3 retail payment trends to watch for in 2016
1. Mobile eCommerce and Mobile Payments
Early on in 2015, everyone expected Apply pay to launch and leave other mobile payment systems in the dust. It did’t happen. Although Apple can be credited for the mass uptake of smartphones, it really didn’t get to where it wanted to in 2015 with respect to Apple Pay. There are many other payment methods available to consumers and they have not chosen outright to use Apple pay on their iPhones. Cash and Credit/Debit cards still remain strong.
So, in 2016 we will see electronic and mobile payments race really heat up between Apple Pay, Android Pay, and a host of other online payment wallets and established payment systems like the ability to buy bitcoin with paypal, Amazon Payments, Gift Cards, Reloadable Prepaid Cards, eChecks, Google Checkout, Google Wallet and ACH among others. Consumers will have more choice and that will mean that there could be a higher proliferation of mobile payments online and offline.
2. Payment Security built from ground up will increase confidence
Everyday millions of consumers use contact-less payment to pay for taxis, public transport, as well as some local stores who have upgraded Point of Sale (POS) systems. The technology has already been in use all over the world and has been proven safe and secure. Consumers using this system are expecting more adoption in retail.
The growth of mobile tech will feed consumers expectations like never before. It’s mainly because of the ease and speed at which these contact-less payments happen that appeals to consumers and merchants. Mobile payments will really take off as consumers get more confident that their personal data and transaction history is secure in their mobile devices. With the proliferation of 2 step authentication and fingerprint technology in mobile phones, it will not take long for this technology to really take off. With payment technology companies baking in stronger hardware and software encryption into payment software, there is no stopping the advancement.
3. Bitcoin will take off in 2016
Bitcoin and other digital currency systems have been around for quite a while, but Bitcoin seems poised to take center stage in 2016. Almost 10,000 merchants have started accepting Bitcoin. Merchants especially like it because it eliminates transaction fees and bank fees to a certain extent. Bitcoin also allows consumers to store bitcoins in digital wallets and use it for cross border shopping and international online payments without having to worry about exchange rates and (again) bank fees and commission rates.
The most important feature of Bitcoin is that it keeps personal data encrypted and private at all times throughout the transaction.
These merchants, among many others, started accept Bitcoin in 2014 and 2015:
- Amazon
- Overstock
- Forbes
- Microsoft
- Dell
- Virgin Galactic
- Expedia
With merchants always looking for lower transaction and processing costs, and consumers looking to shop and pay faster with better security, payment technology will no doubt keep evolving, but 2016 will be the year that it really takes off. After reading the benefits of using Bitcoin, and you would like to create an account or you have a current one, you can access the Bitcoin Profit Login page here to get you setup and logged in to using Bitcoin.
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!