Payment Processing Trends You Need to Know

Payment processing is a constantly evolving industry, and keeping up with all the latest developments isn’t easy.  

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Payment Processing Trends You Need to Know

Jul 12, 2017

Payment Processing Trends You Need to Know

Payment processing is a constantly evolving industry, and keeping up with all the latest developments isn’t easy. Recently, Business Insider reported on four trends that deserve attention.

Mobile wallets may have not yet totally lived up to analysts’ expectations, but Business Insider still believes they have the potential to be the single biggest transformation in payments processing. "Retailers are particularly excited about mobile payments because they can offer valuable insights about customer transactions that companies can use to enhance the shoppers' experience," the publication notes. "The speed of mobile payments can also help increase foot traffic in stores, which in turn would generate more sales."

Since 2014, when Apple® launched the first mobile wallet, GoogleTM and SamsungTM have introduced their own versions, and Walmart, Chase, and other major players have joined the market. BI Intelligence, Business Insider's research service, expects in-store mobile payment volume to grow from $75 billion in 2015 to $503 billion in 2020.

Digital remittance – primarily payments sent by foreign workers to their relatives back home – is a massive global industry that totaled $583 billion in 2014, according to World Bank estimates reported on earlier this year by Business Insider. The World Bank expects that number to climb to $636 billion in 2017.

Digital startups are beginning to claim their piece of the remittance pie. One such company, San Francisco-based Xoom, grew 53 percent between 2012 and 2013, and 30 percent between 2013 and 2014. Today it brings in more revenue from digital than MoneyGram, the second-largest remittance company in the world.

Payments security as it applies to credit card fraud has gotten a great deal of attention recently in the United States, particularly with the adoption of EMV® technology. The card networks have strongly encouraged merchants to upgrade to chip card security.

In October 2015, fraud liability shifted from card issuers to merchants, and the scramble began to switch to EMV terminals at the point of sale. As of Q3 2016, more than half of all small businesses had upgraded, and that number is expected to rise next year.

mPOS, or mobile point-of-sale devices, are here to stay, according to BI Intelligence. It forecasts that there will be 27.7 million mPOS devices in circulation in the U.S. by 2021, up from just 3.2 million in 2014.

mPOS terminals have become even more important as consumers increasingly expect that their payment cards will be accepted anywhere and everywhere they shop. Not surprisingly, Business Insider predicts that responsive retailers will be the biggest group pushing the mPOS ecosystem to new heights.

TSYS Merchant SolutionsSM offers a suite of mobile payment options, as well as a variety of hardware and processing packages that can be tailored for your business needs.

Contact us online or at 1.800.228.2443 for more information.

Apple Pay is a trademark of Apple Inc. Google is a trademark of Google Inc. Samsung Pay is a trademark of Samsung Electronics Co., Ltd. EMV is a registered trademark or trademark of EMVCo LLC in the United States and other countries. All other trademarks contained herein are the sole and exclusive property of their respective owners. Any such use of those marks without the express written permission of their owner is prohibited.