Technological advancements continue to shape the modern payment industries, as more and more businesses worldwide embrace digital payments.
There are three big markets for digital payments in the world: both Americas, Europe and Asia. Contactless payments in all three are growing healthily and POS terminals are following suit. Swedish Berg Institute researchers promise that by 2019, over 70% of the world’s POS terminals will be NFC-compliant. Mobile contactless is making the same progress, following the biometric authentication tech development.
The number of POS terminals is skyrocketing. While mobile payments and card usage drive the trend, cloud based services convert old, “dumb” terminals into smart POS devices. Mobile wallets are on the rise, with Apple and Samsung being the top competitors in the market. Nevertheless, other companies are catching on. Google transformed its Wallet app into the “Android Pay” and LG, another Korean giant, wants its share of the market. It’s still unclear how wearable devices fit into the scheme.
Contactless is becoming somewhat of a standard. Customers like its convenience and merchants favor its transactional speed. All key regions (Europe, Americas and Asia) expect contactless acceptance to peak between 2016 and 2018. Issuers are pushing the timeline with mobile development: apart from Samsung and Apple, HTC and LG are bringing their mobile wallets in 2016. Greatest usage is expected in mass transit, fast food and food retail, while high value transactions still look discouraging for contactless.
Surprisingly, none of the surveyed think Samsung’s Magnetic Secure Technology will generate significant interest. Still, there is a good reason Europeans don’t care for MST: contactless card issuance is having high growth on its own. Besides, it is mandatory for all POS terminals to support contactless by 2020.
Banks are by far the most trusted industry player when it comes to digital wallet services, closely followed by payment networks such as MasterCard or Visa. Merchant acceptance is still viewed as the most prominent factor in driving consumer usage to the next level.
E-commerce grows further
One in four transactions in developed markets retail is e-commerce, so it is clearly doing very well. Market sales are currently expected to amount to 1,181 billion USD, which translates to 10.67% annual growth. In year 2020, market volume is expected to surpass 1,771 billion. Banks and payment networks are still the most trusted entities.
Secure your transactions
Card fraud grew 19 percent worldwide in 2015. Comparatively, card sales grew only 15 percent. Global card fraud losses amounted to 16.3 billion in 2014, while sales made almost 29 trillion USD. Unfortunately, card-based fraud is expected to increase to 18.3 billion before 2020.