As many retailers have likely already begun to see for themselves, the mobile payments trend has not been quite as fast-moving as most analysts expected thus far, with most consumers still using traditional transaction methods such as credit cards. However, technology giants have been pushing the envelope a bit in the past couple of years, launching new initiatives to enable their devices to make mobile payments at the point of sale.
Last July, VentureBeat reported that more advanced trends were already beginning to take shape despite the lackluster adoption rates of mobile payments among consumers, including those related to the use of social media-based ecommerce. The source pointed out that 15 percent of smartphone users viewed business social media accounts as the primary environments for mobile sales. Suffice it to say that this trend has been unwieldy, and more progressive management is crucial to capitalizing on it without taking on excessive risk.
Big news from the giants
CIO recently reported that some of the largest names in the IT world, including Samsung, Apple and Google, are still pushing forward with their mobile payments initiatives in hopes of cornering the market once it really gains steam. Apple Pay was the big news a couple of years back, but Samsung has been working hard to get its own mobile payments technology in order to compete in what many believe will be a highly saturated market in the coming years.
Citing research from eMarketer, the source stated that the use of mobile payments is expected to grow by 210 percent this year, leading to roughly $27 billion worth of transactions in the 12-month period. However, CIO argued that it will be interesting to watch how the market shakes out, as consumers are still working toward a consensus and retailers, payment processors, banks and technology firms are all waiting quietly to see which preferences will manifest into reality.
According to the news provider, retailers will indeed need to recognize that this trend is going to take some time to gain true traction and yield best practices to follow, but that leveraging technologies that optimize customer experiences is a good move today. The cashless society might not be right on the horizon, but preparing for the potential challenges involved therein will help to reduce disruptions and lost opportunities for new revenues down the road.
The right solution
Point of Sale technologies have evolved significantly in the past decade, and retailers are likely already using platforms and equipment that are compatible with some of the more advanced transaction methods around, including EMV chips and mobile. Because there is so much more transformation still to come in the payments market, retailers should consider leveraging a POS terminal that comes with strong security capabilities, optimal interoperability with existing and future systems, and adaptable to the trends that are still to come.
These solutions are available today, and can be easily deployed assuming the Point of Sale application is utilizing the right payments partner.