The credit card processing industry is currently in a state of flux. Every year, payment technologies are expanding at dizzying rates and both consumers and merchants are being confronted with arrays of card options, payment methods and security protocols that they have never seen before. EMV, or embedded chip cards, and NFC, the near-field communication technology that enables mobile phone-based payment systems, are available to more customers in 2016 than ever before and businesses are feeling the pressure to adapt. In order to pursue modern customers in an ever-changing marketplace, small and large merchants alike are being forced to reassess their credit card processing systems and their very relationship with non-cash transactions.
EMV embedded chip cards are gaining popularity for many reasons, but many in the credit card industry recognize that their rise is largely due to the average consumer’s commitment to credit card information security and the clear advantages EMV holds in this department. The advanced encryption in these chips is engineered specifically to prevent massive data breaches and to hide personal information from would-be hackers.
Another nascent technology is the field of near-field communication, the advent of which has made Apple Pay, Android Pay and Samsung Pay all possible. Although a recent survey by Accenture showed that only about 18% of surveyed North Americans are currently using any of these products, the industry is on the rise for the simple reason that people are relying on their mobile devices to accomplish more every year. It is inevitable that mobile pay applications are the way of the future, especially when one considers that 23% of current users are Millennials.
The rise of these new technologies will have a major impact on the credit card processing industry, if only because they are so closely related. The chip technology in EMV cards is very similar to the technology in an iPhone 6 or Apple Watch that allows users to pay for items with mobile transfers. As chip technology advances, both EMV and mobile pay devices will advance at an equal rate.
Additionally, most credit card processing services that are equipped to handle EMV cards are also able to support mobile payments. As more retailers take the plunge and enable chip card payments, the mobile payments industry will get a boost without even having to do anything. Retailers, wary of recent changes in liability legislature that pin blame for data breaches on merchants rather than on banks, are taking to the new technology in droves. Any change in the credit card processing industry will hinge on whether consumers follow.
Copyright 2016 Intrepid Payment Processing