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The Future of Payment and Gateway Processing

By: William Dawsey

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The current trends for payment technology are the future path for merchant services. This involves automation, usability and security. The driving forces are technological businesses new to the payment arena including Google, Samsung and Apple. This has blurred the line between tech and payment companies.

Consumers and merchants are interested in secure and fast payment options to improve the general experience. These trends are expected to change your payment technology well into the future. This includes payment and gateway software development.

At Chetu we have been in the Payment Processing Software Development business for 19+ years. With Over 16,000 Apps Developed, Winners of 150 Awards and 1800 Developers, We Know Software Development.

Biometric Authentication

Biometric Authentication

Numerous individuals across the globe are using biometric technology every day. This is possible through mobile device integration. You no longer need to remember a pin or password to access your mobile devices. The same is true regarding payment authentication.

Biometric authentication is facial or fingerprint recognition. This is used to authorize Apple Pay and Google Pay. According to a survey, consumers believe biometric authentication offers more security. The unique application is unable to be stolen or replicated easily.

The biometric identifier is faster and simpler than when you use a pin or password. You are able to use this method for payment at any time and from anywhere. The comfort of biometric authentication has initiated the slow retirement of other methods of authentication.

Mobile Payments

Mobile Payments

You will continue to use credit cards for the future. What will change is the form. Contactless payments including mobile wallets and NFC technology will remain. The estimate is by 2020, the value of the mobile payment market will reach $503 billion. Improved security will enable you to eliminate physical credit cards.

Consumers and businesses are interested in secure, simple, convenient and fast payment methods. This is adding fuel to the mobile payment market. The mobility of point of sale devices enables companies to receive payments on the go. Physical locations are no longer necessary due to the flexibility of mobile payments.

You can make payments from anywhere and at any time. Payment barriers have been dismantled by the mPOS market. This means businesses of every size are able to accept payments through credit cards and mobile devices. This offers you a better engagement while increasing the flexibility and speed of the checkout process.

Payment technology has been transformed by the mPOS market due to new devices. Merchants are no longer linked to burdensome payment systems. Mobile systems enable merchants to streamline checkouts, secure customer information and incorporate loyalty programs.

In the future, the use of mPOS technology and custom payment and gateway solutions is expected to increase. Mobile Payment Software Solutions and App Development are crucial to any company’s success in the future.

NFC Contactless Payments

NFC Contactless Payments

Another trend in the payment technology market is the reliance on NFC technology. Cities in the United States are already accepting contactless payments in the public transportation sector.

The NFC Payment trend is expected to continue expanding in the future to include additional payment options. This trend will be influenced by custom payment and gateway development. NFC is the new way of receiving payments.

Artificial Intelligence

Artificial Intelligence

Digital commerce was transformed when artificial intelligence assistants were introduced into the shopping experience. You can now make purchases with just a few commands. Artificial intelligence (AI) enables you to pay without having to pick up your device.

The improvement in digital methods and the sophistication of AI enable you to instruct your device to place orders. The reliance on AI assistants is a trend changing merchant's concepts regarding online businesses and stores. This is part of the digital payment methods enabling secure storage through cloud technology.

Blockchain

Blockchain

Identities based on the blockchain offers numerous benefits. This includes the decentralization of data collection, using an immutable ledger for the storage of information and the cross verification of collected dated through the use of a consensus mechanism.

The risk of security breaches is decreased, efficiency and reliability are greatly improved and self-sovereignty is enabled. Using an identity platform based on the blockchain to store data can be used for numerous purposes including:

Blockchain technology may be able to decrease the poverty gap by decreasing corruption, increasing financial inclusiveness and decentralizing access to assets creating value. The assets currently available only for the rich can be tokenized on a massive scale through blockchain technology. Blockchain Development Services and Blockchain Solutions are one of the trendiest technology topics in the world. China has publicly said they want to be the leaders in blockchain technology. Blockchain has totally disrupted the banking industry and moving into to the future blockchain will be the technology of choice.

Cryptocurrency

Cryptocurrency

Payment and gateway software development are important for payment technology. Another important factor in the mainstream commerce market is Bitcoin. This is the most widely recognized cryptocurrency. More retailers will start accepting Bitcoin as a payment method. Bitcoin Software Development - API Integration has gone mainstream and top financial institutions Citi Bank, BNP Paribas, Standard Chartered, UBS, Banco Santander, Goldman Sachs are all in the mix.

Bitcoin is a legitimate virtual currency offering secure transactions. This is because verification of the payment is reliant on cryptocurrency. More retailers are taking advantage of this trend because it is less traceable and more secure. Your transactions are recorded in the blockchain distributed ledger.

Voice Commerce

Voice Commerce

Voice commerce has influenced the behavior of consumers. Smart retailers and brands are learning how to talk to consumers. Voice commerce is only a part of the digital ecosystem enabling you to increase your connectivity, access and knowledge of the digital landscape. This is beginning to change.

Amazon recently filed a patent that may enable changes in your voice to be sensed by Alexa. This can potentially identify your needs, enabling preemptive recommendations. Imagine a future where changes in your environment or voice can be interpreted by a network of devices. This can lead to transactions linking you to events and moments.

Custom Online Payment Solutions via voice commerce using Alexa with Amazon Payments or Google Assistant with Google Pay is the wave of the future.

Cross Border

Cross Border

In the past, you traveled to a store and gave the cashier your payment or shopped on the internet and used the checkout page for entering your information. Recently, there has been a conversion of in-store and digital experiences. You can now order dinner using your smartphone and pick up your food at the restaurant.

The number of digital cross-border purchases became massive last year. The estimate is by 2020, over 200 million Chinese will be using this method. This makes the transactions worth a potential $245 billion. A recent survey showed 37 percent of all consumers in North America purchase internationally a minimum of once per month.

EMV

EMV

The United States has finally made the switch from swiping credit cards to using credit cards with secure chips. This is referred to as EMV or Europay, Mastercard and Visa. The chip is more difficult to counterfeit and is not duplicated or read easily. Custom payment and gateway development have eliminated the magnetic strips.

Counterfeiters are unable to steal information due to the combination of the pin and chip. The United States used pins for debit cards in the past, but not for credit cards. Banks in the United States do not require pins for cards with chips. They are still reliant on your signature for security.

With 60% fraud reduction, 2 million POS terminals and 855 million chip cards EMV Software Solutions including migration, testing, validation, and integration services for POS terminals and ATMs has been high in demand.

Internet of Things (IoT)

Internet of Things (IoT)

IoT has resulted in an increase in the popularity of smart home devices due to the enhanced security and intuitive nature. The automated processes of smart devices can ensure your family's safety. One of the main beneficiaries of IoT is the healthcare industry.

The estimate is by 2021, IoT in healthcare will be valued at $72000 million. IoT can help healthcare companies improve their services through medical equipment and portable devices with internet connections. This ensures you can be diagnosed and receive treatment if you are living in a remote area.

Confidential information and data are handled by IoT devices. As cyberattacks and data breaches continue increasing, the IoT apps and networks are important for increasing security. This will prevent your data from falling into untrustworthy hands. Customized apps can integrate security features for the protection of your data.

Custom payment and gateway solutions have combined with edge and 5G computing to change technology. By 2020, a significant increase in data transfer speed is expected. Uninterrupted data transmissions, faster speeds and 5G innovation ensure the popularity of IoT will include gadgets on the cutting edge.

Your data will be collected by billions of connected devices. This data must be analyzed and processed. This is where AI and big data technology are important. Informed decisions can be made using the predictive analysis of AI. The next generation of data analysis and transmission will be dependent on IoT.

The blockchain concept can be used by eCommerce, retail and BFSI. IOTA can provide protection for the IoT network. This specialized ledger uses connected devices for the recording and execution of transactions. The facilitation of safe transactions will decrease the cost of cloud technology and Saas for businesses.

Entrepreneurs are using Custom Payment and Gateway Solutions to provide you with a personalized experience. The eCommerce sector will include personalized notifications, beacons and sensors. Your activities and behaviors will enable IoT to offer you a more personalized experience.

GAFA

GAFA

The role of Google, Apple, Facebook and Amazon (GAFA) will grow in the payment sector. Due to the existence of Apple Pay and Google Pay, this is potentially a billion-dollar industry. Consumer behavior has been changed due to the convenience and simplicity of eCommerce. GAFA has already introduced you to new payment methods and experiences.

Transaction data reveals information regarding your behavior. This can be used to provide product offerings based on a personalized experience. Financial institutions are finally catching up with Ecommerce giants by leveraging this data. Players in the payment industry are using analytics to harness Deloitte reports and payment data.

This is the key for financial institutions. The consumer can be clearly understood by assessing risk and driving growth. You can make a purchase using any method anywhere and at any time. The difference is there are more payment options. You decide which payment method and channel is most suitable for your needs.

Multiple Payments Gateways

Multiple Payments Gateways

You want your checkout process to be as convenient and easy as possible. Custom Payment and Gateway Development help.

If you are unable to locate your preferred payment, your shopping cart will be abandoned. According to a recent survey, a lack of payment methods resulted in the abandonment of eight percent of all online carts. This represents a lot of money in missed sales.

Smarter owners of online stores ensure their customers have the convenience of mobile payments. The estimation is sales using smartphones in the United States will increase at a rate of 18 percent per year for the next five years. The purchasing decisions for more than one-third of all United States consumers will be influenced.

Mobile payments are preferred by both Generation Z and Millennials. This is especially true for mobile payment apps providing loyalty rewards and mobile wallets. This payment gateway trend makes mobile shopping extremely convenient.

Peer To Peer

Peer To Peer

P2P (peer-to-peer payments) are substantially increasing. This has impacted related endeavors. Venmo is owned by PayPal. This option enables money to be transferred instantly to a bank account. When you make a transaction using your debit card, your funds are available in your bank account for a fee of one percent.

The maximum fee is $10 with a minimum of 25 cents. You can now have funds transferred to your bank account for the same fee without using your debit card. There is no fee for a standard bank transfer. This is available but will require one to three days for your funds to become available.

Zelle P2P Payments were used slightly more often than Venmo during the last period for financial reporting. There was a 56 percent increase in the year to year payment values with a 71 percent increase in transaction volume. This only beat PayPal slightly.

Zelle has stated during the second quarter of last year, the Zelle network sent $44 billion for a total of 171 million transactions. The increase in P2P payments has consumers interested in faster payments. This is in minutes and seconds as opposed to days or hours.

B2B Digital Payments

B2B Digital Payments

B2B (business-to-business) payments are responsible for $38 trillion during 2018. Many of these transactions were made using paper checks. This has a lot of disadvantages for the merchants. Paper checks require additional processing time, require check and postage fees and lead to lost invoices.

The transition to digital payments as opposed to paper checks is expected to increase in 2020. Accepting digital payments is simply a smarter decision for businesses because it saves the company money. B2B processing is less expensive than you may realize due to payment and gateway software development.

Payment Processors providing Interchange Plus Pricing offers numerous benefits. The interchange costs are passed through the interchange with plans for Interchange Plus Pricing. This is less expensive than either a tiered or flat-rate pricing plan. This includes ACH payments, debit card payments and online credit.

Chetu

Chetu has been a top worldwide multi-industry Software Development Company for over 19 years! We have 1800 developers, are a Forbes Technology Council Member, been a six time Inc 5000 Honoree and have created 16,000 Apps. We Truly Know Software Development!

We are Experts in Payment Gateway & Processing Software Development. We have been developing, implementing, integrating, configuring and programming software payment and gateway solutions successfully for a wide variety of businesses We Can Answer Any and All of Your Questions!

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Disclaimer:

Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

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