Trends in Technology
If you missed us at MIB Community Banking Conference last week, here are a few takeaways from our presentation:
The industry is ever-changing. Omni Channel and Omni Payments are growing and with that, comes increased security and fraud concerns. New regulations are being implemented to combat these concerns. For example, FinCen is part of thebureau of the U.S. Department of the Treasury. FinCEN’s mission is to safeguard the financial system money. (For more information about FinCen, visit https://www.fincen.gov/what-we-do.) Another regulation to be aware of is the GDPR, the General Data Protection Regulation, an EU-wide data protection law that supersedes various national privacy laws. It is the biggest data privacy regulation to date and includes huge fines for violations. It’s complicated and confusing how US businesses are actually impacted, but here is a great article from Fortune that breaks it down in easy-to-understand terms: http://fortune.com/2018/05/24/the-gdpr-is-in-effect-should-u-s-companies-be-afraid/
Mobile Payments are on the Rise. Mobile transactions provide companies the ability to accept payments anytime and anywhere. This is instrumental because it allows businesses to get payment faster – at time of service/ or product delivery. This is especially beneficial for certain businesses, such as: HVAC, home repairs, restaurants (table side). There are many mobile payment solutions out there and the nature of the business will determine which solution is the most effective. As this form of payment continues to grow, security will improve with technology as well making it a stronger player in the payment space. And while there are many benefits when it comes to using mobile payments, a new consideration for businesses thinking about mobile payments is breakage costs.
Fintech is creating new landscape for payments. With the rapid growth in Fintech, New Fintech players all the time. This adds new capabilities and tons of confusion + ongoing consolidation. Alipay – could be a big eWallet player globally soon. Person to person payments such as Venmo and Zelle are growing quickly. In fact, growth of payments with Venmo expected to exceed $1 Trillion by 2019. Impacts to business are still being considered. Venmo is working to include digital wallet type technology for B2C sales as well. Square & Stripe are in the news but are not optimal solutions for many businesses; they are costly. These tools are suited for micro business needs.
The future of Biometrics. Biometric Payments could eliminate the need to carry a payment card or smartphone – digital wallet can be accessed by fingerprint, facial recognition, or retina scan. Security benefits of this tech are enormous: Finger print technology to authorize even web purchases with a bio-metric reader at home or integrated with mobile phone. With the growth of Amazon’s Alexa – others are getting into voice commerce space.
What does all this mean to your business? Credit card payments are increasing. 91% of CEO’s said they would be using credit cards to pay for business expenses. It’s time to seriously think about your payment acceptance. Whether you are currently accepting card payments, or looking into it, the time is now to evaluate your solutions and make sure your businesses is running the most efficiently and cost-effective. As business payments will increase via credit card, businesses don’t need their fees to unnecessarily increase with this growth.
If you would like more information about the trends in payments; or want to learn how MSP Consulting can help your business manage its payments, contact us today.