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Published Date : 09-Jul-2019 |
Payment processing solutions market is highly vast and dynamic, as the developing countries focus on innovation and research & development. The developing countries are early adopters of technologies in different verticals. Out of various modes of payment, a credit card is the best mode of payment by consumers in both ways online and point-of-sale (POS) methods worldwide.
Payment Processing Solutions can be defined as the process and service that mechanizes payment of transactions between the merchant and shopper. This is a third-party service which is in reality, a system of computer processes that accept, process and accept or reject the credit card transactions on account of merchants using a secure Internet connection.
Payment processing is a term that denotes how transactions are computerized between the merchant and the customer. In case of a third-party service, which is mainly a computer-based system like eMerchant Gateway, processes the customer’s payment information. It is set up in a way that it can accept or decline transactions on the merchant’s behalf based on the pre-set parameters. All the merchant accounts are business oriented and financial arrangements with credit card processors that enable a merchant in accepting payment cards - in such cases, over the internet. An internet merchant account permits users to run web-initiated transactions online.
In real-time payments scenario, over 59% of businesses believed that payment processing solutions would improve their certainty and cash flow, as per the PYMNTS Real-Time Payments Innovation Playbook, prepared in partnership with MasterCard. Moreover, 70% of businesses believe in benefits from real-time payments’ instant funds' availability, and around 60% of companies interested in real-time payments pursue B2B innovations. According to the study, about one-third of businesses are forecasting to adopt real-time payments technology over the upcoming years. The operations were called as innovation leaders in the report, and these innovation leaders have witnessed a lucrative growth prospect with about 60% of the most innovative companies saying they would adopt the technology in the future.
Formerly, the awareness of paying with mobile devices looked as a Science Fiction scenario. Currently, with the endless use of smartphones in our daily lives, mobile payments have totally changed the way we shop. If a business doesn’t accept mobile payments, then it should be worked upon as this how it will happen near future. The mobile payments, popularly called as mobile wallets, are very convenient both for the consumer and the merchant. Mobile transactions are very popular, accepted locally at many locations, but some of the consumers still believe in using physical cards. The well-established mobile wallets are Apple Pay, Google Wallet, Samsung Pay, and Android Pay.
As competitors, financial institutions and FinTech companies are predicted to work in collaboration. The startup organizations are drawing agility and the way of deploying the technology. On the contrary, financial institutions offer resources and intellect that has been polished over the last few years. Among the established financial institutions with their experience for security and significance in the modern digital world, 30% of Millennials claim that they do not need banks. This stands true for the credit unions as they have an upper hand in stable member relationships & trust and is considered crucial for FinTech companies. The balance between credit unions and technology organizations allows everyone to think about why they tried to operate without each other.
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At present, consumers continue to trust mostly on mobile wallets and mobile payments. The payment infrastructure since the beginning is not for the digital world. To maintain the changes in the payment industry, merchants invest in new technologies which provide multiple payment types. The beneficiary of all these trends is for sure the consumers. But the businesses focus on digital innovation that gives a chance in using these trends to create new and innovative experiences for consumers. The future assures great opportunities for merchants, thus they need to follow and trust these new trends that would reshape the payment modes across the world.
Another area where there may be progress within this year is the ability to pay for goods and services using bitcoin and other cryptocurrencies. Till date, the bitcoin technology has proven to be less than easy to use in making retail purchases, due to lengthy processing times and major security challenges. But solutions allowing a customer to pay with bitcoin without the retailer having to accept bitcoin could ease out the way it would be widely used in retail settings. Flip is a device that uses near-field communications to efficiently turn cryptocurrency into real currency at retailers. It is a tap-to-pay technology and works using the device store a pre-loaded quantity of US dollars, which are exchanged automatically from existing cryptocurrency account. To make a retailer accept bitcoin, the Flip system fundamentally handles a quick sale, transfers the quantity through the system, and pays off the merchant accordingly.
Perhaps the most significant of all payment processing trends is the transformed emphasis on the customer experience. Today’s substitute payment options are not replacements, but rather developments on previous methods. Younger generations believe that more than 60 percent of millennial and Generation Z customers are willing to share their bank account details with third-party vendors. That total will increase as customers become familiar with alternative payment options. A business owner, looking forward to the future and staying informed about the latest payment processing trends is an invaluable element of increasing sales and improving customer satisfaction. In this ever-changing environment, there’s much to look forward to as the world approaches 2019.
The payment processing solutions market is proliferating at a rapid pace owing to several factors. The major factors influencing this boost are the growth initiatives for the promotion of digital and online payments, high proliferation of smartphones, emphasis on improving customer experience, and customers’ demand for immediacy of payments and settlements. Over the coming years, in-store mobile payments are expected to overtake credit cards. Furthermore, as a private equity investment and industry consolidation prosper, new payments technologies are constantly being introduced to the market, enabling broader payment acceptance across the ecosystem and giving a multitude of new opportunities. Additionally, the Global Payment Processing Solutions Market is predicted to rise at a market growth of 9.9% CAGR during the forecast period.