Technology is constantly evolving, and with it, the payment processing industry has also evolved. From touchless payment methods to online payments, the way we exchange money will never be the same. Gone are the days of cash only, making way for something much bigger and more widespread. If you’ve ever wondered just how technology has changed this landscape, here are five ways tech is changing payment processing.
The first item on our list is one you may or may not have any experience with. Regardless, it’s quickly growing into a favorite payment method. Touchless payments are exactly what they sound like; you don’t need to swipe a card or exchange any cash. The payment is made remotely via a smartphone or card (some cards have touchless payment abilities, but not all).
Contactless or touchless payments can be made via apps such as Apple Pay, Google Wallet, or Android Pay. This eliminates the need to carry around debit or credit cards (or cash), making the checkout process more convenient and often much quicker.
Touchless payments aren’t accepted everywhere yet, however. There are many terminals that don’t support touchless credit cards or the smartphone method or only accept one or the other. Make no mistake, however; touchless payment methods are on the rise as one of the most popular payment methods out there.
Apps like PayPal and Venmo allow their users to remotely send money to anyone anywhere in the world at the press of a button. Remember the days of Western Union and wiring money across the country? It’s safe to say the days of wiring money are on their way out thanks to apps like PayPal.
With the ability to seamlessly send money to anyone in the world, these apps have made quite a come-up in recent years. PayPal has been around since 1998, and was one of the first money-transfer sites out there, with its site and app still ranking as one of the most widely used monetary exchange platforms available.
Payment apps come in all shapes and sizes, but it’s probably a good idea to check the reviews on Google or Apple stores before choosing to use one. Some of these apps can even be used in stores, though not all of them are compatible with credit card terminals.
The days of bulky cash registers are on their way to rest in the halls of antiquity. Modern POS systems are slim, lightweight, and some are even portable. They contain so much more than just a simple point of sale tool. They’re marketing, inventory, employee management, and customer relations tools all in one!
A POS system can help streamline your business, create more efficient inventory practices, and even improve your relationship with your customers. Customer profiles allow you to collect contact information and store purchase information on each of your customers, allowing for more customized marketing efforts and a personal relationship with your patrons.
In order to leverage your POS system to promote growth, you’ll want to pay close attention to the analytics tools that most modern POS systems have. These powerful tools allow you to track all manner of metrics associated with sales, foot traffic, and more. The more you know about how your business functions, the better you can tailor it to serve your customers and encourage growth.
While this may seem like something out of a dystopian science-fiction novel, it’s actually quite far from being fiction. The ability to verify payments via some form of biometrics, such as fingerprints or eye scanners, is actually in use in parts of the world already.
Another variation of bio payments is the introduction of a chip that fits under the skin and performs much like your credit card’s RFID chip. It contains your information, and when you purchase an item, the chip is scanned and you’re on your way.
Bio payments are said to be much more secure than traditional methods since it’s infinitely more difficult to obtain someone else’s fingerprint than it is to obtain their credit card number. While bio payments may be more secure, there’s something to be said for the chip method at least. Many have raised concerns on the ethics of putting a chip inside their body.
At the end of the day, it’s up to the customer; how badly do you want to have convenience when paying for your favorite items?
Chipped Credit Cards
Those chips in all of your credit and debit cards are actually required of any cards issued after October of 2015. They’re supposed to be more secure than the traditional magstripe versions, and with all of the recent hacks (like the Target breach), it’s easy to see why the government enacted such a policy.
Chip cards have made purchases far more secure, lending some peace of mind to the already nervous public in regards to making purchases. Everyone’s worst nightmare is having their bank information stolen, and for those living on a budget, this could be absolutely devastating.
Technology will continue to evolve as time wears on, reducing older payment methods to a place in the archives and paving the way for more secure and accessible methods. Bio payments may be the way of the future, but for now, they’re gaining only minor traction in the payment processing industry.