There’s no question about it: Mobile payments have moved into the mainstream as retailers and foodservice operators add mobile point of sale (mPOS) technology in an effort to improve customer service efficiencies, foster customer engagement, conserve costs, and more. The mobile payment arena continues to evolve, with three mobile payment trends emerging or becoming stronger in 2017.
1. Increased focus on mPOS security. The Europay/Mastercard/Visa (EMV) liability shift went into effect on October 1, 2015. At that time, liability for fraudulent card-present transactions was transferred from card issuers to merchants — unless those merchants have POS technology in place that accommodates payments made with chip-enabled cards.
Also under the security subheading on the roster of mobile payment trends for 2017, merchants are working harder to ensure that their mobile payment processing applications comply with the Payment Application Data Security Standard (PA-DSS). The PA-DSS was designed by the Payment Card Industry Security Standards Council (PCI SSC) to prevent third-party payment applications from storing prohibited secure data, including magnetic stripe, CVV2, and PIN data. It also dictates that software vendors develop payment applications that comply with the Payment Card Industry Data Security Standard (PCI-DSS).
In another security-related piece of the mobile payment trends pie, this year, merchants will seek payment apps that can be disabled remotely by the mPOS provider to maintain data integrity. The disablement will be possible on mobile devices or back-end servers.
2. mPOS is being integrated with the omni-channel experience. Over the past few years, merchants have adopted an omni-channel business model that enables customers to engage with their brand via multiple platforms, including brick-and-mortar stores, online storefronts, and mobile apps. In keeping with what must be considered one of the most important mobile payment trends for 2017, merchants are seeking sophisticated mPOS solutions to support a seamless, secure omni-channel experience.
Solutions that fit the bill encompass those in which mPOS integrates with traditional payment terminals, so as to give businesses access to every transaction completed by every customer, in every channel. These solutions also allow mPOS to integrate with mobile apps, back-end systems, inventory management solutions, and loyalty programs.
3. mPOS will remain in growth mode. A mobile payment trends report from Timetric indicates that worldwide mPOS terminal adoption will have increased to a staggering 38 million by the end of this year, up from just 4.5 million in 2012 and representing a compound annual growth rate (CAGR) of 42.7 percent.
Timetric also forecasts that the adoption of mPOS terminals over standard POS terminals will stand at 46 percent at year-end, compared to a 17 percent gap seen in 2012. Meanwhile, according to Javelin Strategy & Research, the dollar volume of mPOS proximity payments made worldwide will reach $5.4 billion by 2018.
New mobile payment trends are likely to surface as merchants and vendors continue to develop and refine mPOS applications and technology. Savvy retailers and hospitality operators should watch closely for and adapt to these and the above-mentioned trends, as mPOS and mPOS customers are a moving target.