Updated time: Aug 20, 2020 , 10:30 (UTC+03:00)
The payments industry has been evolving rapidly, especially in the last few years with the growing shift to digital.
Four Trends in Payments Processing
Mobile wallets could be the single biggest transformation in payments processing if they take off in the way that many analysts expect.
Retailers are particularly excited about mobile payments because they can offer valuable insights about customer transactions that companies can use to enhance the shoppers' experience. The speed of mobile payments can also help increase foot traffic in stores, which in turn would generate more sales.
Migrants have been sending money to their families and friends in their home countries for decades, but the digital shift is making that process easier than ever. And while digital still just holds a small portion of the global remittance market, growth at digital startups is tremendous.
In 2014, $583 billion were remitted across borders in 2014, and the World Bank expects that number to climb to $636 billion in 2017. There is a note that digital accounted for 6% of all remittances in 2014.
Small business owners had been one of the most hesitant groups in terms of upgrading to EMV, but that has changed as of the third quarter of 2016. In Q3, more than half of all small businesses had upgraded, up from just 31% one year earlier.
Related: What is 3D Secure Transaction?
Mobile point-of-sale (mPOS) devices were extremely disruptive when they first debuted because they provided a sleek and easy way for all merchants to accept card payments. Today, consumers expect merchants everywhere to accept cards, so mPOS terminals have become even more important.
BI Intelligence forecasts that there will be 27.7 million mPOS devices in circulation in the U.S. by 2021, up from just 3.2 million in 2014.