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We have identified four major trends for e-payment in the e-commerce business. Here are the first two:
1.) Moving Away from Cash and Towards Credit Cards
In the months and years to come, the balance of power will continue to shift in favour of credit cards. One reason for this involves the regulatory changes in interchange fees (inter-bank fees). These have been heavily reduced, meaning that banks and credit card companies must now increase their investment volumes in order to compensate for the losses. Another reason is that many countries are attempting to become less “cash-dependent”. Even in a country like Germany, where people traditionally prefer cash, recent studies show that card sales have increased eightfold over the last 20 years. Cash currently accounts for just 53.3 percent of the total sales at German brick-and-mortar retailers.
2.) From Traditional Payment Types to Mobile Payments
One of the trend-setting mobile payment methods of the future—and thus, we predict, one that will be more popular than traditional credit or debit cards in 2016/2017—is contactless payment using NFC technology. After all, when paying with a smartphone, armband, watch or similar device, a drained battery can quickly make your purchase impossible. QR-Code-based apps won’t stand a chance, while fingerprint authorisation, like that used by Apple Pay or the iPhone, will ultimately be too insecure for many people.
Mobile payments via NFC technology will mean faster checkout times for retailers and speed and convenience for customers. For purchases below 25 euros, no signature or PIN is needed—customers just “tap and go”. In order for mobile payments to really take off, though, challenges relating to security of the payment process in general, as well as to acceptance of the technology by retailers, must first be overcome.
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