What’s in Store for the Payment Processing Industry?

What’s in Store for the Payment Processing Industry?

What’s in Store for the Payment Processing Industry?
Payment processing has gone a long way. Gone are the days when all payments should be made in cash. In the course of time, several new methods have been utilized that eased the process and made payment transactions far more secure. Take a look at the quick evolution.

What’s in Store for the Payment Processing Industry?

Offline Credit Card Transactions
Twenty years ago, this small plastic piece have found spots in almost everyone’s wallets, paving the way for cashless payments. All you needed to do is put it into little slots in the then bulky machines you’d find at many different merchants. Store clerks would put a carbon paper inside and the slot where the card was would be run over by a roller to make a receipt. The purchases would be reflected into the card statement every month end.

Online Credit and Debit Card Transactions
A few years later, the processing of offline credit card transactions is still quite the same except for the fact that the plastic card is now swiped. In addition, the bulky machines were replaced by smaller and sophisticated ones. Debit cards also became prevalent so as to cater to people who don’t like to carry with them big amounts of cash but would neither like to pay every year for cardholder’s annual fee. They would arrange with their banks to link their accounts to a certain card and they could start enjoying the benefits of cashless payment. One more milestone linked to this is that with the advent of the Internet, people start to make business like purchasing stuff and paying bills online in order to reduce time, money spent on gas and effort. All they have to do is to key in their debit or credit card’s number and security numbers.

Mobile Payment  
Mobile phones have become smarter nowadays. Mobile banking has been in effect for a few years now but new trends keep on coming. In fact, Near Field Communication or NFC is on the rise. This technology is a short-range, as its name suggests, high frequency wireless communication that allows exchanging of data between two devices with just a few touches. Any handheld device including smartphone and tablet that is NFC capable can serve as an ID card and function as a credit card. Some of the bigwigs in the e-commerce industry such as PayPal and Google have already embraced this new technology.

How Does NFC Work?
This technological marvel permits exchanging of data involving two devices by pressing buttons or touching on the screen. For the transaction to be completed, there must be an initiator and a target, both could either be the payee and payer. The initiator would then generate a radio frequency field with a small range of about 4 centimeters. The target would pick it up as soon as it recognizes the frequency field and will receive the data being shared.

The market is growing and mobile technology firms have been putting their devices on sale. By 2015, it is expected that the value of NFC mobile money transactions would reach hundreds of billions of dollars. Has your business been utilizing this fast and convenient way of processing customer payments?

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